Strategic Analysis of Goodys SA
The aim of this assignment is to provide an analysis of Goody’s S.A., the leading fast food chain in Greece, from a strategic marketing perspective. After briefly presenting the profile of the company, the assignment analyzes the external and internal environment, paying attention to the factors that affect their business, as well as the sources of its competitive advantages. Following these, a hypothetic case is analyzed, whereby a new low-cost retailer enters the fast-food industry in Greece.
Goody’s is the leading fast-food chain in Greece, and belongs to Vivartia Group. The company was founded in Thessaloniki by Mr. John Dionisiadis, who opened the first Goody’s store in 1975. The first store in Athens was established in 1981. In 1994, Goody’s entered the Athens Stock Exchange, while in 1997 the company started expanding its business to foreign markets, and specifically in Portugal, Bulgaria, and Cyprus. Nowadays, the company operates approximately 180 fast-food stores in Greece, 6 in Cyprus, and 1 in Bulgaria, occupying about 5,000 employees in total (Vivartia, 2014).
The scenario of the case discussed in this assignment suggests, a new low-cost retailer enters the fast-food industry in Greece, which obviously affects the business of Goody’s. Within this context, there are two ways in which the company could respond. The first is to continue following a differentiation strategy, focusing on the different nature of the products it offers, compared with the low-cost competitor (as well as other competitors). According to this strategy, companies offer products and services, or product and service features that consumers perceive as unique (Gamble et al., 2010). More specifically, and also taking into consideration Greek consumers’ emphasis on eating healthy foods, the marketing campaigns of Goody’s shall emphasize on the fact that the food products offered by the company are made of fresh and high-quality materials and ingredients, and for this reason their cost is higher than that of low-cost competitors, and the new one that has emerged in specific. The campaigns may also go even further and talk about quality control mechanisms employed by the company, so as to ensure that the quality of food products offered by Goody’s is really high, thereby safeguarding human health. Last but not least, Goody’s shall also promote its long history and presence in the Greek market, which have made it trustworthy and reliable in the minds of Greek consumers, as well as the innovative home-delivery service that no other fast food chain of this type offers. Following a differentiation strategy, Goody’s would also support the way it has been positioned in the Greek market for so many years.