Loblaws Inc. Should Stay Domestic and Not Go International

  • Category: Speech,
  • Words: 262 Pages: 1
  • Published: 21 April 2021
  • Copied: 110

Loblaws Inc. Should Stay Domestic and Not Go International 

As Loblaws Inc.’s future depends on the millions of Canadians that rely on their products, price and efficiency to help them in their everyday lives, they should continue to operate domestically rather than go international. 

Loblaws Inc. has hundreds of stores all across Canada is a predominant President’s choice (PC) retail company that sells alcoholic beverages, general groceries/merchandise and pharmacy goods. Founded in 1919, Loblaws Inc. has used their innovative thinking, local resources and customer rewards to become one of the largest domestic retailers in Canada. 

During the 1970s Loblaws Inc. began to fail their international expansion due to their lack of competition with other global retailers, which is why they cannot reattempt to go international.

Unlike Loblaws Inc.’s international counterparts, Aldi (est. 1946), they lack an extremely loyal customer base who value Aldi’s discounted/affordable prices and world-renowned reputation for their valued goods. 

Aldi’s reputation creates a different brand name that allows them to continue to spread their franchise. Aldi’s success is based on their relationship with their suppliers, allowing them to offer low prices for their consumers. 

Due to Loblaws Inc.’s thriving relationship with their PC suppliers, they lack the desire to have unbeatably low prices by having partnerships with other Canadian retailers such as Shoppers Drug Mart, Fortinos and No Frills. PC’s optimum points reward system allows Canadians to be loyal to their brand instead of retailers such as Loblaws. 

As long as Loblaws Inc. has a partnership with PC, they will never have the strength to go international without the help of the other PC retailers; until this happens, Loblaws doesn’t have a loyal customer base or a healthy initiative to afford an international franchise successfully. 

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