Disco S A marketing and strategy
- This is a preview of the essay.
To view the full text you must login!
Being consistent with a strong policy of expansion over the previous years, Disco S.A. has decided to almost double the number of its supermarkets in 1997 (from 60 to 109). This is a major move and a clear signal to the market. It also reveals the general strategy adopted by the company, which is clearly based on massive acquisitions of smaller retailers and market penetration of its stores. Indeed, by 1997 Disco controls five different brand names that still need to be changed into Disco's name.
However, the first obvious question is whether that strategy will pay off in the long run. In other words, will Disco be able to also increase its sales at the same speed? In fact, if we look at Disco's financial statements we can see a bigger increase of current liabilities than of current assets, making the current ratio drop from 0.7 in 1996 to 0...