Gardner Distibutinc Company Swot Analysis

977 Words Nov 9th, 2010 4 Pages
Gardner Distributing Company SWOT Analysis

Gardner Distributing Company purchases, sells, and distributes Iams premium pet food products (68 percent of sales), pet supplies (14 percent of sales), and lawn and garden supplies (18 percent of sales). The management team has developed a purpose, mission, and objectives; but the strategies of the firm are not clear. Defining the firm's strategies will require an understanding of the business and the two industries in which the firm operates. It will also require a synthesis of the manager's dialogue on the strategic options of the business. To find out how a strong strategic plan for this company will look like let’s do the SWOT analysis and illustrate all the sides of the business.
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It looks like saving money for the customers, but it brings great profit for the company. Instead of supplying only large retail stores like PETsMART and PETCO, they now allowed its distributors to sell Iams’s products to small rural and upscale grocery stores. This allows Gardner to operate in the areas where Iams’s product was not available before. According to some estimation, Gardner can now open up to 60 grocery stores in 6 months.
Another possible opportunity for Gardner is acquiring more territory and acquisition of its competitors. Gardner’s managers feel that the location of Gardner allows it to easily come to other markets like Seattle, Salt-lake City, Portland and others. Acquisitions will allow rapid growth in a short time period. However, there may also be synergies in distribution, information systems, and management.

Threats
The major threat for Gardner is coming from large retailer like PETsMART and PETCO. These companies are aggressively acquiring competitors and open new stores. Iams sells its products directly to these companies, which can reduce Gardner’s gross profit percentage.
Another potential threat is in the company’s financials. According to financial data, Gardner has a lot of receivables because of rather long age. This brings up a possible problem of low liquidity. Apparently, Gardner has very small cash flow compared to total income. As one of the mangers pointed out, cash flow is more important than net income.

Overall,

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