Askew’s Foods vs. Wal-Mart: A Strategic Analysis of Competition

This case study examines the strategic challenges faced by Askew’s Foods Inc. in British Columbia, Canada, due to the impending market entry of Wal-Mart. David Askew, CEO, is considering the development of a new store to compete effectively. The analysis identifies symptoms such as increasing market competition and potential threats from substitute products, technological upgrades, and supplier power. The core problem is the potential adverse impact of Wal-Mart’s entry on Askew’s existing downtown location. The suggested solution involves developing a state-of-the-art building on the eastern side of Salmon Arm, away from Wal-Mart's potential location, to mitigate the competitive threat and maintain Askew's market position.

Running head: ASKEW’S FOODS VRESUS WAL-MART
ASKEW’S FOODS VRESUS WAL-MART
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ASKEW’S FOODS VRESUS WAL-MART
Summary:
Askew’s Foods Inc. located in Canada is facing major business threats due to the evolving of
new , powerful and potential competitor, Wal-Mart in the same location. Moreover, Askew’s is
yet to build it other new branch in the downtown of Salmon Arm. David Askew , the CEO, of the
Askew’s is planning to go with the development of new market by providing the local customers
with quality goods at fair prices. Moreover, it will maintain the age-old tradition of providing
sustainable and environmental friendly product to thrive in the competitive market.
Symptoms:
The symptoms responsible for the major problems are the expansion of the local markets. The
strengths of Askew’s and Walmart relative to the local market are that both the organization are
experienced for more than 70 years in the local market and the products to serve the customer
need are affordable and sustainable in nature. The products used by Wal-Marts are healthy and
organic foods. On the other hand, Askew’s produces environmental friendly and sustainable
products. Whereas, the weakness are that there are high employees turnover that lead to the
declining of employees loyalty (Grant, 2016). Moreover, the limited product differentiation
relative to local market is a major problem (Hollensen, 2015). Furthermore, if Salmon Arms
Savings and Credit Unions (SASCU) approve Walmart for the financial support, Askew’s
business is going to be affected.
Major Problems:
If new Wal-Mart store is being opened in Salmon Arm, then Askew’s have to open its new
uptown store in eastern side of Salmon Arm. The major problem or issues the competitor should
be addressing in the local business environment are the industry rivalry due to the threat of
substitute products (Santos and Laczniak, 2015). Innovative and latest technological upgrade
make the business condition more exaggerated. Moreover, the bargaining power of suppliers
besides the customers is a greater issue that can influence the productivity of the organization
(Dobbs, 2014). The evolving threats due to the potential upcoming and powerful competitor are a
matter of great concern. Askew’s has to develop a new business strategy in order to thrive in the
competitive environment.

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ASKEW’S FOODS VRESUS WAL-MART
Cause:
The cause of the major problem is the entry of Walmart in the market as Askew’s market
condition is going to be affected. Walmart is a giant multi-national company and one of the
biggest retailers in the world. However, the product of Askew’s is sustainable but Walmart
products are more cheap and organic in nature. Moreover, Walmart is recently offering online
shopping for their customers, which provide the customer the convenience of shopping from
their homes.
If I were on the Askew’s Board, I would suggest David’s plan to develop the state of art
building at the eastern side of Salmon Arm to be a better option than no new development at all.
As, Wal-mart entry in the business market would adversely affect the general merchandise and
local supermarket s and would be a serious threat for Askew’s current downtown location.
Moreover, the new proposed building is five kilometer away from the Wal-marts potential new
location, thus it is preferable to go with this plan.

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ASKEW’S FOODS VRESUS WAL-MART
References:
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), 32-45.
Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Santos, N., & Laczniak, G. (2015). Marketing to the poor: A SWOT analysis of the Market
Construction Model for engaging impoverished market segments. Social Business, 5(2).