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2005 to 2006 – GM of HEB/Central market. 2001 to 2005 – Fox and Obel CEO. 1987 – Graduates from The Culinary Institute of America. 1990 – Graduates from Cornell University. 11/4/08 - Store Opens. 2004 - Cary moves to The Woodlands. Introduction.
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2005 to 2006 – GM of HEB/Central market 2001 to 2005 – Fox and Obel CEO 1987 – Graduates from The Culinary Institute of America 1990 – Graduates from Cornell University 11/4/08 - Store Opens 2004 - Cary moves to The Woodlands Introduction Team 10: Joe Ablaza, Oana Botusan, Brody Jungers, Eric Le Baron, Aaron Lindquist
Executive Summary • Mature Consolidating Industry • Increasing Societal Concerns • Strong Competitive Forces • Increasing Price Value • Moderately Attractive Industry • Broad-Differentiation Strategy • Blocking Defensive and End-Run Offensive Strategies • High-Performing Supportive Culture • Moderate Financial Strength • Related Diversification through Internal Start-up
Strategic Group Map HIGH H&H WF CM Price & Quality MED. K LOW Key: HIGH LOW MED Channels of Distribution H&H – Hubble and Hudson WF – Whole Foods CM – Central Market K – Kroger
Driving Forces of Change • Increased demand by and expanding segment of consumer for quality products • Increasing market growth characterized by richer consumers and relatively more sophisticated food demands • Increasing societal concerns in presence of health/dietary concerns
Five Competitive Forces • 4 Rivalry – Strong • Impact: • Recommendation: Focus on quality and product differentiation • 4 Threat of New Entrants – Strong • Impact: Dilutes market share • Recommendation: • 5 Substitute Products – Strong • Impact: Threatens future growth • Recommendation: Compete via superior quality and additional services • 4 Supplier Bargaining Power – Strong • Impact: Threat to profitability via higher costs • Recommendation: Strengthen established supplier alliances • 4 Buyer Bargaining Power – Strong • Impact: Increased profitability potential via higher prices/perceived value • Recommendation: Increase brand loyalty 4.2 = High – Overall Competitive Pressure
Industry Attractive Analysis • IMPACT • Growth Potential: 3.5% • Competitive Forces: 4.2 High Pressure = Offensive/Defensive Strategy • Industry Profitability: Moderate Company Profit Potential • Degree of Risk: Moderate Risk • Consumer Trends: Product Offerings Opportunities • Expertise: Highly Knowledgeable Employees • Seasonality: Little Seasonal Differentiation • Regulatory Factors:Extensive Government Agency Licensing • Resources: Ease of Entry = THREAT
Focus Differentiation Strategy CompanyStrategyAnalysis • Product and Service Differentiation • Full service market • On-site bistro & cooking school • Catering • Supply Chain Management • Locally grown premium organic products • Market Development • Consumer Education - Specialty foods
SWOT Analysis (Broad Differentiation Strategy) Internal External Strengths Weaknesses Opportunities Threats • Limited Market Size • Quality Control Methods • Low Employee Efficiency • Core Competencies: • Expertise = KSF * • Supplier Relations = KSF * • Product Differentiation = KSF * • Reputation • Customer Service Amenities • New Rivals Entering Market • Lower Priced Substitutes • Shift in Buyer Preferences • Expand into Additional Markets • Supplier Strategic Alliances • Expand H&H Branding * = Integrated into company strategy
Offense Strategy Central Market -3.5-:1 End-Run Strategy More Distribution Methods Defense Strategy Whole Foods – 1:7 Blocking Strategy Build Name Recognition
Culture Strategy Structural Analysis • Broad Differentiation Strategy • Specialty products and services • Strong, High Performance Culture • Principles established and executed • Supportive Culture • Employee support of principles and goals • Culture Changing Strategy • Substantive - reward system • Symbolic - lead by example
BCG Analysis - Internal Startup Hubble and Hudson HIGH Black Walnut Cafe Industry Growth Rate Startup LOW HIGH LOW Priority Cash Trap Investment Relative Market Share
G P Hubble and Hudson P P S S S P Black Walnut Cafe Startup GE/MCKINSEY - INTERNAL START-UP High Med. Industry Attractiveness Low Med. High Low CSAM/CPAM
Hubble and Hudson Black Walnut Cafe Startup COMBINED MATRIX ANALYSIS