Problem Analysis of Cott Corporation
Group Assignment #1 – Cott Corporation
Cott was found by a Montreal clothier, Harry Pencer in 1955. The company imported bottled and canned soft drink into Quebec from the US. After Harry Pencer's death in 1983, his three sons, Samuel, Gerry, and Bill, inherited Cott. Once Gerry Pencer became CEO of Cott in 1988, he transformed Cott into the largest supplier of private label soft drinks in the world. Under his leadership, Cott increased the competitiveness of private label soft drinks by lowering the production costs, raising quality, and improving its packaging. After the death of Garry …show more content…
They will need to counterattack this by finding a way offer those consumers assurance of quality and reputability. The location and availability of the Cott brand in stores is vital to the consumers recognizing them as a brand worth buying. For example, where Wal-mart is concerned, they always have skids of product located directly inside the entrance of their stores of products that are on for weekly specials. It would not be a bad idea for Cott to take advantage of such opportunities.
Sustainable Competitive Advantage Analysis for Cott Corporation
Valuable Capabilities Rare
Capabilities Costly to Imitate Organized to be Exploited Overall Sustainability
- Private label
- Product variety
- Quality comparable to the competition YES
- Cost leader in the carbonated soft drink industry NO
- Other private labels have the ability to expand in the same way YES
- Structure allows for further growth in the industry The analysis shows that Cott Corporation has the ability to earn above-average returns, but only have a temporary competitive advantage.
Like the financial analysis above, the sustainable competitive analysis also shows the company should proceed with caution.
1. Invest in technology to make production more efficient
Cott should be aware of the market for new production machinery. They should stay