A common business analysis technique is a SWOT analysis, or analysis of an organization’s strengths, weaknesses, opportunities, and threats. In marketing, a SWOT analysis is often used to decide whether to launch a new product or to identify ways to improve an existing product. In management, SWOT analyses might be used to assist managers in identifying viable strategies. While multinational giants such as Loblaw have dominated the grocery store industry, Triple 4 Advertising has been successfully defending business for independent grocers. Triple 4 Advertising is a Moose Jaw, Saskatchewan-based merchandising group that includes more than 520 grocery and convenience stores in Alberta, Manitoba, Saskatchewan, and northwestern Ontario. Established in 1994 by Harry Watson and David Klatt, Triple 4 is the fastest-growing association of independents in the country. Triple 4 was created from Watson’s expertise in the grocery business. He knew that offering customers reasonably competitive prices was critical for independent grocers’ survival. In the prairies, residents do not hesitate to drive for many hours to the larger communities just to benefit from the lower-priced goods at one of the large chain stores. Triple 4 knew it could not possibly sell at large chain store prices, but developing an alliance of small, independent stores to create a larger buying group would allow the independents to come closer to competing with large store prices. Small stores could then retain customers who might otherwise be willing to commute longer distances. The company developed a long-term strategy that involved receiving the best possible discounts and rebates from wholesalers by purchasing large quantities of goods as a group. In 1997, the company strengthened its reputation by joining Distribution Canada Inc., a national alliance of independent grocers. That year also saw Triple 4 strike a deal with Pratt’s Wholesale that included a fixed freight charge for all Triple 4 member stores. As a result, membership increased to 74 independent grocers that year. Membership continued to grow, and by the summer of 2007, the group had further increased to 519 members.

An important success factor for Triple 4 is how it treats its members. What started out as getting the best whole-saler prices and lowering expenses has expanded to assistance in areas such as developing store blueprints and decor; acquiring deals on debit/credit card services; managing long-term liabilities; providing life insurance, property insurance, and dental care; providing educational resources; and hosting trade shows. The store-specific support improves the trust and confidence that the member stores have in the Triple 4 organization. Because the focal point of Triple 4’s long-term strategy is increasing the number of members to optimize the group advantage, the owners must consider the risk of not being able to provide its member retailers with individual attention as the number of members grows.

In 2010, Triple 4 Advertising’s Harry Watson was recognized for his accomplishments in the small, independent grocer industry when he received the ABEX Business Leader of the Year Award.

Required:

A. What appear to be Triple 4’s strengths relative to competitors (i.e., its core competencies)?

B. What appear to be Triple 4’s weaknesses relative to competitors (e.g., Walmart)?

C. An organization’s opportunities are identified by looking at the external environment and discovering potential new markets, technologies, or other prospects. What types of opportunities does Triple 4 currently appear to be taking advantage of?

D. What appear to be major threats to Triple 4’s future success?

E. Discuss how the balanced scorecard can assist an organization in addressing its strengths, weaknesses, opportunities, and threats.