SWOT Analysis of Core- Mark Holding Company, Inc. (CORE)
Detailed SWOT Analysis on Core-Mark Holding Company, Inc.
Core-Mark is one of the most recognized and esteemed supplier and marketing organization in North America. The company laid its foundation in 1888 in California, and since then have become a renowned name in the logistics industry, expanding its operations throughout North America and Canada. Core-Mark essentially deals with the distribution and marketing of wholesale consumer everyday products to convenience stores throughout the states. It now includes the provision of technological solutions to its service offerings as well. The clientele includes a vast majority of stores, retailers, merchandisers and drugstores, etc that carry convenience goods or FMCGs in their product range. From humble beginnings, the company has now developed its client base to include 29,000 retail stores and convenience sites across United States and 28 across Canada with approximately 42,000 units distributed.
• The biggest strength of Core-Mark lies in its sheer presence and size in the North American Market. Its client base is the largest in the United States covering majority of Convenience stores, retailers, grocers, merchandisers, specialty stores, pharmacies and liquor stores in the country.
• Also the low pricing strategy utilized by the company enables it to become the front runner in its operations.
• The differentiation strategy utilized by the company helps Core-Mark specifically focus on each and every client and offer them customized solutions, whether technological or marketing related gives it a huge competitive edge in the market and amongst its competitors.
• After the bankruptcy case filed against Core-Mark, in 2003, and the loss of the biggest chain of customers Kmart from their client list, poses a gigantic blow to the business.
• The stock price for the company was reduced to less than $1. After 2004, and under a new CEO, the organization has reclaimed its right to being a leader in the market, but the loss of prospective clients remains to be handled.
• Other than this the cost leadership that the company enjoys as its market strategy has positioned it in the market, enabling it to become the most recognized name in the business. This opens many opportunities for attracting prospect clients and stores to its web of customers.
• Being a part of the consumer industry and dealing with the consumption of fast moving consumer goods, Core-Mark is highly affected by market trends worldwide. Currently the market is in a recession hence stock prices all around the world have reduced drastically.
• Therefore, focusing on the consumption power of consumers, the industry can suffer a downfall due to long occurring effects of recession and decreased buying power of customers.
• With varied logistic solutions offered less than one roof, many competitors can offer similar business solutions to smaller retailer stores and develop their business from there. Core-Mark needs to develop on its advantage of cost leadership and differentiation strategy to form closer ties and relationships with their clients to have a long term advantage in the industry.
Core Mark. (2012). Company Website: http://www.core-mark.com/ Retrieved: 22nd Oct, 2012.
Core Mark. (2012). Company Website (About): http://www.core-mark.com/about.htm Retrieved: 22nd Oct, 2012.
Core Mark. (2012). Company Website (Solutions): http://www.core-mark.com/solutions.htm Retrieved: 22nd Oct, 2012.
Linked In. (2011). Website: http://www.linkedin.com/company/core-mark-international Retrieved: 22nd Oct, 2012.