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Asfc Strengths And Weaknesses

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Asfc Strengths And Weaknesses
Strengths:
Sales in convenience stores and the food service segment remained strong because of the Company’s well-established presence in the single-serving snack market.
Sales of both potato and nacho chips increased,
4 warehouses replaced with cross-docking systems and reduced inventory levels by ASFC by approx.. 10%
Anwar Ayoub successfully reduced inefficiencies in the manufacturing processes by lengthening the production runs. This reduced the cost of sales by approximately 7%.

Weakness:
In the supermarket sector, competition was fierce and, to maintain valuable shelf space, ASFC found it necessary to grant increasingly large discounts and allowances. ASFC continued to avoid entering the private label products, club store, and
…show more content…
Growth in the snack food industry has attracted new entrants into the market and expansion into niche snack products.
With more choice being offered by supermarkets and drugstores, convenience stores have had to struggle to maintain their share of the salty snacks market. market leader in every region of Canada is Goodcrunch Limited (Goodcrunch); d controls over 40% of the Canadian market for salty snacks.

sales growth and market share, even with respect to subsidiary companies, have a direct impact on ALL STAR’s share price.

If the strategy is unacceptable, ALL STAR will consider selling ASFC to Goodcrunch.
Goodcrunch is threatening to pursue the convenience store market in Canada and is looking at buying Deli-snack as an initial step
Opportunities:
The drugstore market is a fast-growing outlet for sales of snack foods
With respect to food products, club stores and mass merchandisers are becoming increasingly popular among consumers. Typically, these retailers sell snack foods produced by a single large manufacturer in order to negotiate favourable

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