Ganong Bros Ltd

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Goals For the past two consecutive years Ganong Bros. Limited (GBL) have experienced a financial loss. Taking this into consideration, GBL’s primary goals are to restore the company profitability and increase revenues by fifty percent. Current Strategic Position Being Canada’s oldest confectionary company, GBL has positioned itself as a differentiator in the sugar confectionary and chocolate market because all of GBL’s products are made with great professional care, using only the finest ingredients. Therefore this strategic position allows GBL to offer a premium product and build a name for itself in boxed chocolates, competing against large Canadian firms, such as Moirs, Laura Secord, Smiles and Chuckles, Neilson and Lowney. Assessment of Current Situation External Factors Currently the Canadian domestic confectionary industry is in the mature stage. One of the primary attributes of a company being in the mature stage is that mature industries undergo consolidation- the combination of competitors through mergers or acquisitions, which allows companies to enjoy lower cost through economies of scale. As mentioned in the case, in the late 1980’s consolidation led to greater concentration of market shares, resulting in the increase plant efficiencies necessary to compete internationally. Also, in this stage customers are more knowledgeable and are willing to pay premium prices for high quality products. This is reflected by the fact that in the late 1980s, the growth of retail gourmet candy shops, such as Laura Secord, pointed to a consumer trend toward purchasing high-quality, specialty products at premium prices. Another attribute of mature industry is globalization. By 1994, $400 million of confectionery products were exported outside of Canada, and $540 million of products were imported. 60 percent of industry shipments were accounted for by

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