Ganong David Ganong Must Determine Essay

Thus, the company's future is as a low-cost provider, and there is little reason to have undue attachment to the Ganong brand name. In addition, between the new St. Stephen plant, the Thailand plant and possibly the plants of the other small companies, Ganong has the excess capacity to dedicate to private label production. The weak dollar can give the company a cost advantage in the U.S. market. While the Ganong brand failed in that market, a private label brand might not. Further, Ganong would be able to generate volumes in new markets without worrying about a sales force. The company can instead focus on improving its operational efficiency and leverage the low-cost rural New Brunswick workforce and its geographic location closer to Boston than to Montreal. In developing a strategy to restore profitability, Ganong needs to recognize that...

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The company's business model has been outdated for a long time, but its ability to defend its home market and its success in boxed chocolates has essentially masked its overall lack of competitiveness. A new competitive strategy needs to be built to restore profitability in the long run. The current time is favorable, because Ganong still has a healthy balance sheet and only one year of losses. The firm needs to be honest internally about its strengths and weaknesses, in particular vis-a-vis the multinational competition it now faces. In doing so, it will find that its production capacity gives it substantial opportunity in private label, and that this growing market should be pursued as it gives the company the best chance to operate profitably in the long-run.

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