Essay on Canco Ltd Case

3515 WordsFeb 24, 201515 Pages
Canco Ltd. case Summary The Canadian fradistat industry consists of four companies: Acme Ltd., Beaver Ltd., Canco Ltd., and Deeco Ltd. Though the industry is growing, it needs highly skilled workers where the products cannot be replicated with the current technology but the company focuses on local markets. Canco Ltd. was established in 1976 in Atlantic Canada and is the second largest company with a market share of 29% but the profits in 2007 were only third highest with the products of average quality. The company’s flagship plant in New Brunswick, for the past three years, has been operating below its capacity, as total industry sales in the eastern region have grown slowly and the company lost some of its share of the…show more content…
Economic Factors The industry seems to be less cyclical but the production will be low during recession and the sales of companies will grow rapidly during good economic times. As the industry consist of four companies and produces key components that cannot be replicated with technology; and needs skilled workers, buyers have to buy the products to continue the production. The companies with great sales can get financing at the interest rate of 8%. Social Factors In the industry, many companies are providing high, average and low quality products at different prices so buyers can choose according to their needs. The advertising plays an important role in the industry that company can enhance their market share. The quality and price plays an important role in creating an image which in turn enhance sales. Technological Factors Though technology could enhance the productivity of workers and decrease the labour costs, fradistats cannot be replicated by current technology. But the introduction of technology needs huge investment. Technology provides competitive advantage in term of decreasing costs and improving efficiency. In this industry, technology could save increasing wages which increased by over 15% over the past three years in the industry. SWOT Analysis: Canco Ltd. 2007 Eastern Central Western Total Production capacity (000

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