4. Case Scenario - The Grocers of Werdna (2\%) In the fictional Canadian town of Werdna there are six grocery stores. Three of them are described here. "Penny Pincher" is by far the cheapest store. Prices are 10- 20% below those of its competitors. Customers are required to bring their own bags or boxes and they are expected to pack their own groceries. The store is clean and tidy, and products are displayed in their shipping containers. While the store does have most products, it only carries one or two brands of each item and it does not carry specialty goods. "The New Delhi Market" is located in a neighbourhood where most of the residents have recently immigrated to Canada from India. The store specializes in authentic ingredients and products, many of which it imports directly from India. Since these products are unique to this store, there is little price competition on these items. In addition to English and French, the staff in the store speak Hindi, Punjabi, and several other languages spoken in India. "Home Town Grocery" has committed to delivering the best service of any its competitors. Although the prices are not the most competitive in town, customers enjoy complimentary coffee and tea as they shop. There are many personnel available to help shoppers find what they are looking for. The store's fresh food departments take special orders from customers for everything from birthday cakes to specialty cuts of meat from the butcher. The store even offers a service where you can email or phone in your grocery list and they will shop it, pack it, and deliver it to your home for a nominal fee. a) Penny Pincher demonstrates which competitive strategy? A) cost leadership B) focus C) stuck in the middle D) generic b) The New Delhi Market demonstrates which competitive strategy? A) cost leadership B) focus C) stuck in the middle D) generic c) HomeTown Grocery has been experiencing a small but steady sales decline since Penny Pincher opened two years ago. It seems that for some items the people of Werdna prefer Penny Pincher's low prices to HomeTown's exceptional service. HomeTown's situation is concerning but is not desperate at this time. Which corporate strategy should Home Town consider at this time? A) renewal B) stability C) functional c) HomeTown Grocery has been experiencing a small but steady sales decline since Penny Pincher opened two years ago. It seems that for some items the people of Werdna prefer Penny Pincher's low prices to HomeTown's exceptional service. HomeTown's situation is concerning but is not desperate at this time. Which corporate strategy should Home Town consider at this time? A) renewal B) stability C) functional D) retrenchment d) The strategic planning team for HomeTown Grocery was meeting to address the small but steady sales decline the store had experienced in the two years since Penny Pincher opened. The members began discussing possible changes to the company's current strategy when one of the managers suggested, "Let's cut back on some of the extra, more expensive services we offer and then we can lower prices to compete with Penny Pincher." By being more like their competitors Home Town's competitive strategy could become A) stuck in the middle B) differentiated C) functional D) focused
