Additionally economic improvements and increase in consumer spending both in

Additionally economic improvements and increase in

This preview shows page 8 - 11 out of 22 pages.

Additionally, economic improvements and increase in consumer spending (both in Ontario and around Canada), following years of stagnation and latent growth of the market, are opportunities
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Surname 9 that Iknoor can take advantage of to expand its market share and capture new consumers (Baumgartner and Rauter 87). What is more, new trends in consumer behavior aid Iknoor in opening additional markets and providing unique services targeting these markets. In particular, the company’s core competencies can be essential in exploring ventures in similar business fields. A comparative example can be helping other organizations in researching ways of developing better construction or trucking machines. These prospects can also allow the firm to diversify its product categories and build new revenue streams. Government incentives also open opportunities for Iknoor to produce goods that met federal requirements to guarantee benefits such as rebates and tax breaks. Threats Facing Iknoor The company enjoys several advantages in the Ontarian as well as other Canadian markets in which it operates. However, various direct and indirect market forces threaten its business. To begin with, several small and big multinational players dominate the construction and trucking industries. This has resulted in intensive competition in the market. Notably, stable profitability has attracted both new and old firms in the industries over past few years to increase their portfolios; an aspect that has put downward pressure on Iknoor’s overall sales as well as profit margins (Hill and Jones 11). Moreover, the company supplies innovative trucks and related services irregularly. Although the company has endeavored to become creative in its market, these initiatives have often been responses to market development by close competitors. Secondly, the company lacks a stabilized supply of essential services and goods, which has led to low and high swings in sales volume over time. Furthermore, growing trends toward isolationism in North American economies are threats that impede Iknoor’s transnational operations.
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Surname 10 Although the firm’s business is restricted to Canada, it provides services and goods that serve the US and Mexico and isolationism within this block can affect Iknoor’s sales negatively. Strict government regulations are other threats to the company’s ventures. For one, rising pay levels particularly the need for minimum pay of $15 an hour and inflating costs of raw materials result in monumental pressure on the profitability of Iknoor. Besides, liability laws in the various territories that Iknoor operates are different, which may expose the organization to liability claims due to changing in policies within its markets (Hill 17). Additionally, the demands for the company’s trucks and hauling services are seasonal in nature and any disastrous events during such peak seasons may compromise Iknoor’s profitability in short to medium term.
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  • Fall '15
  • Mr. Njoroge

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