Different Strategies, Same Goal
Oct 9th, 2010 by Laura MacDonald's Blog
Rona Inc. and Canadian Tire Corp. are two huge retail companies who enjoy a stable presence in the Canadian market. According to the article, “Canadian Tire, Rona Map Out Different Growth Plans”, both companies are currently looking to expand their operations in the next couple of years. However, each has a different strategy for achieving this expansion. For instance, Rona Inc. plans to purchase acquisitions. It sees buying up pre-established, little stores as a key factor for increasing its profit. It needs to ensure that these stores can successfully harmonize with the rest of the country-wide chain.
On the other hand, Canadian Tire Corp.’s strategy seems to be based on establishing more of its new “smart stores”. These “smart stores”, although smaller, are deemed to be more efficient and even include a food section. The two different strategies described above are different methods to achieve the same general goal of maximum profit. Strategies have become necessary in the competitive markets of today, as operational effectiveness (designing a company to produce the greatest amount of output in conventional ways) tends to result in numerous companies reaching maximum production. No one wins that way. Strategies allow companies to expand in unique ways, thereby giving them advantages over other companies.
Read more: www.vancouversun.com/business/fp/Canadian+Tire+Rona+different+growth+plans/2020164/story.html