Smartmart Strategy Essay

2822 Words12 Pages
Overall strategy for SmartMart SmartMart is a successful retail grocer with organic products as its core differentiator. Its mission is caring for environment and providing strong financial returns to create a sustainable future. Its strengths are stakeholder confidence and brand loyalty. Its major customers include the affluent segment of the society with affinity for green environment and for rich shopping experience. Based on the market trends SmartMart foresees the need to reexamine its current model to succeed in the next 5- 10 years. My strategy takes into consideration the following while respecting the company’s mission and values: 1) Value creation and for stakeholders and Shared Value. 2) Value capture and maximization. 3) Porter’s five point Stakeholder analysis Decision Analysis and Strategy: Scenario1: My decision-Move to a smaller, more targeted store concept In order to make this decision the first challenge was whether to change the business model or not.1Strategy can be viewed as building defenses against the competitive forces or as finding a position in an industry where the forces are weaker. Porter’s evaluation of five forces on current model (Appendix1A) suggests a high – medium range of 5 forces. Thus we eliminate the 3rd option (stay same) as the profitability in the future can be low and the model is not sustainable. Although environmentally this option is the most viable it does not satisfy the sustainability and stakeholder’s analysis. I needed to find a solution that would lower the five forces for an efficient functioning. A stake holder analysis of the given options gave me a better insight (Appendix 1B) As per the stakeholder analysis, Niche skills (move smaller) sounds favorable for customers, managers and local community while shareholders find it less risky and fuel prices does not impact it. The 1st option to grow risks
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