Summary The Canadian fradistat industry consists of four companies: Acme Ltd., Beaver Ltd., Canco Ltd., and Deeco Ltd. Though the industry is growing, it needs highly skilled workers where the products cannot be replicated with the current technology but the company focuses on local markets. Canco Ltd. was established in 1976 in Atlantic Canada and is the second largest company with a market share of 29% but the profits in 2007 were only third highest with the products of average quality. The company’s flagship plant in New Brunswick, for the past three years, has been operating below its capacity, as total industry sales in the eastern region have grown slowly and the company lost some of its share of the Deeco Ltd Net profit margin 15.4% 26.9% 16.1% 7.9% Return on equity 20.1% 25.1% 22.4% 9.7% Sales (000 units) 4947 3033 6036 2961 Market share 29.1% 17.9% 35.6% 17.4%
Strengths Canco is second-largest in sales with a market share of 29% within this four companies Canco plant in New Brunswick is well-known for its experienced and highly-qualified workforce The Canco’s plant in Ajax is a company's largest plant, with a capacity of 3,000,000 units per year Canco’s product in Western Canada have sold well which could bring revenue to the company The bond issued by the Calgary plant was well received in the market so the company could use it for development of the firm Weaknesses Company’s products are of average quality which fades their image that will not help the company to attract new customers and retain existing customers The company makes profits just equal to the industry average while its sales are the second largest in the industry with 29% of market share. Canco Ltd. is not spending enough money on advertising to promote their products which results in less popularity, lower sales and profit compared to the competitors. Company’s original plant has been functioning below its capacity though it has skilled and highly-qualified workers Canco is regarded as falling short of its potential
