Rona Downsizing Decision

Posted by in Uncategorized

Rona is planning on downsizing stores in hopes to increase revenue. Rona is planning on reducing plant size as well as the number of employees per store. Rona is known for its big size, so it might be difficult for Rona to get customers to change their perception of Rona. I came across this information on Kimberly Chang’s blog. I agree with Kimberly in the sense that it is a good idea if it lowers costs and if it improves customer service. However, Rona should be careful and should think out all the details before beginning anything. This is due to the fact that there are many heavyweight competitors in the field that have competitive pricing on their products. Also, Rona may find it difficult to differentiate it from the current competitors because the competitors have been in the market for several years and have already established a certain position in customer mindsets. Rona will have to create an effective marketing strategy in hopes of creating a new image or perception among consumers.