Case Study:

Prince Edward Island Preserve Company

Prince Edward Island Preserve Co Ltd (P E I Preserves) manufactures high-quality, high price point specialty preserves and related products—vinegars, sauces, etc. It has to choose from a variety of expansion options including retail outlets in Toronto or Tokyo, automated bottling and increased production. It is recommended that the company increase production and emphasize its competitive advantage—its reputation for natural quality.

Current Strategy

Prince Edward Island Preserve Co Ltd (P E I Preserves), is anticipating annual sales of one million dollars for the first time in its short history. Over the first four years of its existence it has …show more content…

Nonetheless, presumably on the basis of Bruce McNaughton’s intuition, the company has equipped itself with the rudiments of a business strategy. Simply put, there is a great deal of latent capability or potential. The association with P E I, Anne of Green Gables, and natural quality is the basis of a marketing strategy of differentiation. Closer association with these images, a natural fit for P E I Preserves, has tremendous marketing potential. At this particular point in its history P E I Preserves also has latent financial capabilities. Specifically, it has the ability to raise $100,000 to finance its eventual expansion. It also has a great deal of under-utilized production capacity. At present the processing plant only operates one shift, five days a week for five months of the year. Therefore, production could easily be doubled or even tripled very efficiently and cost-effectively. Using two shifts, seven days a week while still only manufacturing five months of the year could triple production. In a similar fashion, bottling is currently not automated. Automation of the bottling process would facilitate packaging of larger production runs. With a capital investment in only bottling mechanization P E I Preserves could increase its production substantially.

Strategic Alternatives

Essentially, P E I