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Business and Finance

GraceKennedy Limited Company Analysis


The food industry in the Caribbean is doing well, and the success of Grace Foods relies on the best leadership exhibited by one of the largest conglomerates, GraceKennedy Limited. In 1922, the conglomerate started its operations and the ability to understand the market made it possible for the company to grow. For instance, the possibility of diversifying as well as employing differentiation makes it possible for the venture to get the best out of the market. The initial location was Jamaica before expanding to the United States, Canada as well as the United Kingdom. Even though the company managed to scale its operations, significant productions related to drinks, cereals, vegetables and meat among other products still occur in Jamaica (Line, 2013).

The company falls under the non-specialized wholesale of food, beverage as well as tobacco. Ideally, consumers in the field are located in almost every part of the world. That makes it possible for the company to enjoy a more extensive market base. It is evident that the company will soon scale out of the western region due to the growth of populations in other places as well.

Question 1

The threat to the new entry: In Grace Foods, it is evident that threat of new entry is low. There is a need for resources such as finance and time to succeed in the industry. That is an aspect that most people are not willing to execute, resulting in challenges in the implementation. Grace Foods started way back and managed to implement the best growth strategies. At the moment, the organization benefits from the economy of scale, which makes it possible to succeed in most occasions. The ability to operate at large level is the main reason for the competitive edge in the industry. Creating factories, for instance, requires a lot of money, which most entrepreneurs are not willing to be part of in the market. Moreover, a lot of money is needed in setting the management pyramid, marketing the products as well as organizing the supply chain.

The threat of Substitution: In Grace Foods, this aspect is very high since the organization lacks a unique feature. The only existing instance is the orientation towards the Caribbean cuisine. The situation makes Grace Foods at the deep end since any company that can come in with cheaper products are likely to become the primary rival, and that is likely to affect operations within the company.

Buyer power: In Grace Foods, the buyer’s ability is high, and the target market includes Canada, UK, US as well as the Caribbean. The first market was the Caribbean counties with the low level of income. Later, it emerged prudent to expand to towards other markets. The ability to develop contributed to the increase in revenue, an instance that currently benefits the organization to a greater extent. Food is such demanded by almost every individual, and that also makes it possible to improve growth within the venture.

Supplier power: The approach is low since the organization banks on the existing factories. As a consequence, the organization is likely to create suppliers themselves. The UK division made good use of the Enco Products Limited as well as the Chadha Oriental Food Limited to reach customers in different locations. Another outlet that exists in the UK is the Grace Food UK manufacturing, which makes it possible to meet demands and improve the lives of individuals in the region.

An analysis of the four Porter’s Forces indicates that the implementation of the Competitive Rivalry relies on the ability of the organization to use the best efforts in providing quality products. Failure to implement such approach is the main reason for the entrance of the competitors into the market, which will also affect growth (Orozco, 2010). The ability to create the suppliers made it possible to cover the four problems. Remaining the best producer in the market is such a critical instance to embrace since failure to do the same will not thrive well with the organization. In the business market, the number of wholesale players is high. That calls for differentiation as well as uniqueness when operating. Even though the competitive rivalry is at its medium, there is need to remain the best in the market.

Question 2

Currently, the organization strives to the leading supplier in the main. That is an object that is partly achieved, and it is imperative to use some other approaches to scaling operations within the sector. It is evident that the ultimate growth of the organization depends on the ability to create a correlation between the production process and the demand of consumers in various parts of the world. Three key strengths exist in meeting the objective. The management, with the help of the best partnership, makes it possible to grow operations within the premise and meet the needs of the consumers. The partnership also makes it brainstorm and get the very best when implementing key features related to operations (Hall, 1992). Conforming to the international standards also makes it possible for the organization to produce products that meet customer demands in different locations.

Ultimately, there is the existence of qualified workforce, which improves operations related to supplying chain. Challenges that arise is the ability to ensure uniqueness in the production process. That is possible once the organization differentiates its processes and work based on customer demands. Marketing currently utilizes the online platform. That is an aspect that the organization fails to employ making it a daunting task to compete favorably in the market. Another challenge is lack of innovative technologies, which also makes it hard for the venture to succeed on most occasions.

Question 3

The success of Grace Foods depends on the ability to ensure sufficiency as well as reliability in the supply chain management. Even though the administration is competent, and that is the main reason for entry in the various markets. Also, scalability is evident; there is need to venture into other markets such as Asia and other markets to ensure success. Another strength is the qualified workforce which has the idea of what should be produced to meet market demands. The ability to conform to the internal standards and have the right ground for partnership also makes the organization to stand out. Having stated such, weaknesses also exist. Among them include lack of the ability in providing unique products. The budget is also not sufficient when trying new tactics (Walker et al., 1991). That denotes the need to have proper market research to address the needs of individuals and make it possible in scaling operations. The ability to embrace the social media platform will also make it likely to emerge the best in the industry.

The ability to succeed in the home market and create subsidiaries in Europe as well as other parts of America is a great move and denotes a sense of confidence regarding globalization. Most customers view the company positively, an instance that scales operations. In any given instance, it is the role of the company to sell the brand and remain marketable in the market domain. That is the surest way to achieve the competitive edge and address concerns as they arise. Most of the products that Grace Foods produce are different from the popular mass food. The instance makes it beneficial and offers a competitive advantage in the market. The resistance to substitution seems low within the venture. Ideally, the low threat of new entrants compensates the same and bring success in the organization.


Hall, D. (1992). Grace, Kennedy & Company Limited: A Story of Jamaican Enterprise. Grace Kennedy & Company.

Line, M. (2013). GraceKennedy Limited. Company Profile. November12.

Orozco, M. (2010). Attracting remittances: Market, money and reduced costs. Inter-American Development Bank.

Walker, S. P., Powell, C. A., Grantham-McGregor, S. M., Himes, J. H., & Chang, S. M. (1991). Nutritional supplementation, psychosocial stimulation, and growth of stunted children: the Jamaican study. The American journal of clinical nutrition54(4), 642-648.



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