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Mac's Convienience Operating In South Africa

4215 words - 17 pages

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International Business Strategy Report |
Mac’s in South Africa |
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4/2/2012 |

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Introduction
Mac’s Convenience Store Inc. is the largest operator in all of Canada. They offer popular food products and are operated by Couche-Tard.  After dominating the Canadian market, Couche-Tard decided to further their market expansion into the United States market and became the second largest convenience chain in North America. Mac’s is such a successful operator simply because they are able to tailor their products and services to the local tastes and needs of the market. Also, Mac’s strong financial position and ability to create value for its shareholders, has increased its ...view middle of the document...

* Considerable presence in the United States with more than 3300 stores
Mac has not engaged in much International expansion other than the United States. However, doing business with another country will allow for an easier transition to doing business in other countries, as they converged with different rules, laws, regulations, economies, cultures and consumer preferences. Although the States’ culture is similar to Canada’s, being associated with a powerful country will enhance their company’s image and attractiveness as an International competitor and investment.
* Tailor their products and services to local tastes
What allows for Mac’s convenience stores to succeed so well in many different regions is the fact that they do not conform to a single model. The design of their stores is based on attracting the clients in the particular region they are situated in, by conforming to their tastes and preferences.
Stores are only located in high-traffic areas, as well as some independent stores and those located in linear shopping centers
To attract the majority of the market segment population and to keep an ongoing flow of customers, it is crucial that Mac’s stores are located in busy areas. Being located in high flows of traffic gives Mac’s great visual exposure without having to spend money on advertising, as well as increases accessibility to the public.
* Stores are open 24 hours a day, seven days a week
Allowing customers access to their products at any given point is what differentiates their brand from others. Accessibility and convenience is increased, which are two important factors necessary to achieve brand loyalty.
Strong focus on training and motivation
Mac’s is able to provide a unique experience with excellent customer service because of their dedication to educating, inspiring and empowering all of their partners and people to understand and meet consumer needs.
 
Weaknesses
* Open 24/7, 7 days a week leaves them more susceptible to robbery
Although being accessible to customers at all times can be an advantage, it can also present issues with theft. When most businesses are closed, and traffic is low, stores that are open are at higher risk for theft to occur and or robberies.
* Lack of security against shoplifting
Although workers are trained and experienced on how to meet consumer needs, they are not properly trained in preventing and dealing with shoplifters.
Mac’s convenience stores have limited International expansion efforts
Although Mac’s have expanded into the United States, they have not tried to set up subsidiaries in other countries with diverse cultures and mannerisms, making them a weaker international competitor.
* Supply chain management currently limited to North America
Because Mac’s has limited their growth to only North America, their suppliers are only comfortable with supplying products that fit the North American cultures. Therefore, if Mac’s decides to expand...

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