Case Study Little Short Stop

Introduction:

Little Short Stop (LSS), is experiencing some challenges that inhibit their ability to maintain a strong local reputation while sustaining their above average industry growth in revenues. Their immediate problem is the changing consumer tastes due to shifting lifestyle and generational preferences. LSS must also consider what their competitors are doing as they are in direct competition with many multinationals. Furthermore, two-thirds of their revenue streams are restricted and regulated by the government making it difficult to achieve same store sales growth. Finally, with the increase of minimum wage in Ontario, costs for convenience store owners are at an all time high, and must be considered when making decisions for the

The primary shortcoming for LSS is the fact that two of their main product categories (tobacco and lottery tickets) are highly regulated by the Ontario government which makes advertising and sale of these products very difficult. Another fault LSS has run into is the limited influence they are able to gather due to the fact that their stores exist in such close proximity to one another. This prevents the company from setting up adequate barriers to entry (other than their social influence) for competitors in the market. (For full strengths and weaknesses, see exhibit SWOT

The primary opportunity LSS can exploit is the influence it has on local communities. Since Little Short Stop stores are run as if they were always a part of the community, consumer trust in the brand is much higher than a larger chain convenience store. Consumers place high value in trust they place behind the brand and LSS has proven again and again that consumer trust placed in them is a good decision. Another opportunity for Little Short Stop is the growing trend of consumers desiring convenient service to compliment their busy lifestyles. Little Short Stop aims to meet this desire by providing a fast yet excellent consumer experience. With opportunities also come threats and one of the most pressing issues in the market facing LSS is the sheer size of their competitors. With both 7-Eleven and Circle-K establishing many locations around Ontario, LSS’ local social influence will be tested as the competition offers different experiences and loyalty programs. LSS must also contend with the fact that the convenience market has low barriers to entry and can face indirect competition from sources such as 24 hour grocery stores, department stores and local dollar stores. (For full opportunities and threats see Exhibit SWOT