Circle k corporation case analysis

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Circle k corporation case analysis

This position had guaranteed it a leading role in the mids and a period of growth during that time. However, marked a downturn in the business and the company was forced to file for protection under the U.

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The Convenience Store Industry Who do we buy from? The main characteristic of the industry with regard to the competitors and main actors on the market is that the industry is highly fragmented. As ofno less than 1, were listed as belonging to the convenience store category.

The high degree of fragmentation was given not only by the large number of convenience stores, but also by the high percentages of sales accounted for by small companies: Serious competitors were the so called g-stores, that is gas stations that also sold food, as these were generally operated by commercial giants such as Texaco or Chevron, well-capitalized companies that could afford to compete.

Additionally, they posed a serious threat as were mainly axed on the products generally making most sales for convenience stores: Studies have shown that the typical customer for a convenience store is a white male, between 18 and 34 with high- school education and employed as a blue worker.

However, the great number of companies in the Circle k corporation case analysis has determined executives to take measures in order to expand this target customer into a potential and future customer.

Thus, women, office and white-collar workers were regarded as being appropriate, possible future customers. The executives were bound on finding new niches and possible clients. What are they buying?

In general, the main products that customers bought were gasoline, tobacco products, prepared foods and alcoholic or non-alcoholic beverages. Industry Threats The industry had suffered from slowing sales growth rates in the late 80s, mainly due to increase in the number of competitors and industry saturation.

Additionally, the increase in gasoline sales, that generated lower gross profit margins due to high cost of technology mainly, had affected industry profitability.

Another threat came from the differentiation issue: This could be done in the products being offered although the range of products is mainly the samein location generally, throughout America or in any other way of increasing public awareness advertising campaigns for example.

Convenience Stores in and became a subsidiary of Circle K Corporation in The Corporation runs approximately licensed or joint-venture stores in 13 foreign countries. The number of stores run within the company greatly expanded during the 80s, mainly due to an aggressive acquisition program, began in and following throughout the following years.

Gasoline accounted for around However, as we shall see below, the product mix and an interest in high-profit margin products led to a destabilization of the company, as sales of popular merchandise decreased.

Identifying the problems The company seemed to have led a much too aggressive plan of acquisition in the 80s, which it later could not sustain and could not face the costs involved. These new facilities could of course bring an increase in sales, but a decrease in effective profits due to higher costs.

This is what actually happened in Another serious issue was the fact that one of the most important competitors in the industry were huge oil companies, like Texaco and Amoco, that had pushed through in the industry due to the g-stores each operated.

These companies proved most serious rivals: An increase in costs from to led Circle K. To the brink of bankruptcy. Looking again at the characteristics of the industry, we find that this is a very difficult market to compete on.

Circle k corporation case analysis

How to be different? How to sell something differently from all the rest of the numerous competitors in the industry?

We have an industry with a very large numbers of competitors, each operating a specific niche and all selling the same products. The only differentiation could come from how you sell it, and here Circle K.

Another issue to be addressed concerns the pricing policy used. Several competitive advantages such as location, longer hours accessibility and faster service had previously allowed Circle K. To charge higher prices and provided the highest gross-profit-margin in the industry.

However, an increase in gasoline sales, corroborated with a decrease in regular merchandise sales provided for lower gross-profit-margin, as gasoline sales implied higher costs, due to the use of expensive technology.

We will discuss each in part.Fundamentals Name. The symbol used by mathematicians to represent the ratio of a circle's circumference to its diameter is the lowercase Greek letter π, sometimes spelled out as pi, and derived from the first letter of the Greek word perimetros, meaning circumference.

In English, π is pronounced as "pie" (/ p aɪ /, py). In mathematical use, the lowercase letter π (or π in sans-serif font. IntroductionIn this paper we introduce a new method for the analysis of problems governed by partial differential equations such as, for example, solids, structures and fluids.

Brent Nance, insurance case manager for AIDS Project Los Angeles, Tosco Marketing Company, with The Circle K Corporation to create The Circle K Company, a division of Tosco with more than 4, retail locations in 34 states.

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It introduces concepts and tools useful in structuring and solving marketing problems, while extensive case studies provide an opportunity for those concepts and tools to be employed in practice. 🔥Citing and more! Add citations directly into your paper, Check for unintentional plagiarism and check for writing mistakes.

Excerpt from Case Study: Circle K.

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Case Study The Circle K Corporation The Circle K Corporation is considered to be the 30th largest retailers in the United States and is the nation's second largest operator and franchiser of convenience store.

Circle Corporation by Takumi Otsuka on Prezi