Analysis of the Situation
The subject of this analysis is the case of Corey Barnette. It can be said that there are two major reasons why Barnette’s business is experiencing underperformance. It is worth mentioning that underperformance here means that Barnette could not become a leader in the cannabusiness market in Washington, D.C. The author of this paper believes that the reasons for the underperformance of both District Growers and the Metropolitan Wellness Center are separate operating or, put differently, reluctance to organize supply chain collaboration due to shared risks, and an excessive focus on the political factor, and not on the competitive one.
Supply chain collaboration would strengthen both entities’ positions in the cannabis market. District Growers could grow more plants that the Metropolitan Wellness Center would have early access to. Singh, Garg, and Sachdeva (2016) note that “supply chain collaborative firms gain more benefits by satisfying customer’s requirements as compared with firms those work individually” (p. 712). It can also be assumed that, according to a Model of Competitive Rivalry, there was no proper competitor analysis when entering the cannabis market in Washington, D.C. (Hitt, Ireland, & Hoskisson, 2016). It is mentioned in Barnette’s case that he relied more on his political influence. Competitor analysis would make it possible to predict the direction of canna-business development.
Alternative Courses of Action
Supply Chain Collaboration
As noted above, one of the alternative courses of action that Barnette could take is to merge District Growers and the Metropolitan Wellness Center into supply chain collaboration. According to the strengths, weaknesses, opportunities, threats (SWOT) analysis, the weakness that led to underperformance was the unwillingness of both groups to collaborate (Sarsby, 2016). Phadermrod, Crowder, and Wills (2019) note that “SWOT analysis, a commonly used tool for strategic planning, is traditionally a form of brainstorming” (p. 194). However, SWOT analysis is a very subjective theoretical framework (Phadermrod et al., 2016). The proposed alternative course of action should be considered as a long-term strategy.
Another alternative strategy that Barnette can implement is low pricing. Prdić (2016) notes that this “strategy gives greater stability of the company and the possibility of expanding its potential compared to other business strategies in the short or medium term, bringing more revenue to the company” (p. 173). It can be especially effective in the high-end area where the Metropolitan Wellness Center is based. According to the Ansoff Matrix, such a Market Penetration will change the outlook of the product (“What is the Ansoff matrix?” n.d.). Consequently, it will attract more neighborhood consumers.
Recommendation
Low Pricing Strategy
The author of this work recommends to Barnette the path of supply chain collaboration. The cannabis market is still a growing industry, even though it is on the cusp of becoming a developed one. It is the long-term nature of supply chain collaboration that can make both District Growers and the Metropolitan Wellness Center the leaders or one of the leaders of canna-business, as Corey wished.
Conclusion
This paper explores the case of Corey Barnette, namely the underperformance of District Growers and the Metropolitan Wellness Center. The author of this paper has identified two reasons for the underperformance as well as proposed and described alternative courses of action. The author of this work has used such theoretical frameworks as SWOT analysis, Ansoff Matrix, and a Model of Competitive Rivalry. There is also a recommendation that suggests the best strategy.
References
What is the Ansoff matrix? (n.d.). Web.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and Cases: Competitiveness and globalization. Boston, MA: Cengage Learning.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis-based SWOT analysis. International Journal of Information Management, 44, 194-203. Web.
Prdić, N. (2016). Competitive advantage on the basis of the strategy low price. Ekonomika, 62(1), 163-174. Web.
Sarsby, A. (2016). SWOT analysis. Oakland, CA: Spectaris Ltd.
Singh, H., Garg, R. K., & Sachdeva, A. (2016). An innovative approach to modeling the benefits of supply chain collaboration by using interpretive structural modeling. International Journal, 4(4), 712-724. Web.