preview

Essay on Loewen Group Case Study

Good Essays

Executive Summary of Case

External Environment Analysis

Opportunities

Threat of new entrants:
The barriers to entry are high due to high fixed costs, lack of history in the local community, zoning regulation, and “not-in-my-back-yard” protests.

Power of suppliers:
Funeral consolidators such as Loewen group can put a great deal of pressure on suppliers to reduce prices.

Power of buyers:
The funeral home is usually the buyers first point of contact, therefore the funeral home has first chance at selling all related services and supplies.

Product substitutes:
The small family owned funeral homes cannot compete with …show more content…

Threats

Threat of new entrants:
Not a great threat due to high barriers of entry into the market.

Power of suppliers:
Because of the Internet, suppliers can now sell their products online directly to the consumer virtually eliminating the funeral home from the bereavement process.

Power of buyers:
Buyers are becoming a lot more educated in the costs of funeral homes and itemized expenses. Because of this funeral homes cannot mark-up their costs the way they used to.

Product substitutes:
Today there are companies that offer caskets that one can make by themselves. They can use the casket as a coffee table until it needs to be used for its other purpose.

Intensity of rivalry:
The threat of being bought out by SCI is very intense and the price they were offering shows how greatly they wanted to incorporate Loewen Group into SCI.

Competitor general analysis:

a. Future Objectives:

b. Current Strategy:

c. Assumptions:

d. Capabilities:

Economic:
Because of the increasing education of the consumer, many may choose to bypass the funeral home as a way of lowering costs.

Get Access