Metro and Loblaws, two of the country’s largest supermarket chains, are reporting “disappointing earnings.” Loblaw’s stock has dropped by 6% whereas Metro’s stock has dropped by 5%. Target has now entered the Canadian market and is planning to open up another 33 stores within Canada. Increased competition is part of the reason for the decline in stock price.
This article shows how a business model canvas is always changing. As a result of this increase in competition, Metro and Loblaws may also have to change their cost structure in order to focus more on marketing in order to maintain revenue. Revenue streams may be impacted as consumers move to the competition for cheaper prices. They will need to reevaluate their value proposition and make it more attractive than the competing supermarkets. This is an example of how parts of the business model canvas are related and that changing one will lead to a change in the other. In order for a company to run effectively, it needs to understand it’s competition and change the parts of it’s business model canvas in order to provide the best value proposition to the consumer.
Target’s Website: http://www.target.ca/en/
Video on the Business Model Canvas: http://www.businessmodelgeneration.com/canvas