Rocky Mountain Co-op
Rocky Mountain House Co-op (RMHC) is a retail outlet located in Rocky Mountain House, Alberta. Frank Gallagher is their general manager and Milt Zirk is the Petroleum manager. Milt is worried that the entrance of United Farmers of Alberta into Rocky Mountain House will threaten RMHC's petroleum division.RMHC is situated 80 kilometres west of Red Deer and its location is right off Highway 11.The town of Rocky Mountain House (RMH) has a population of about 6,000 people and has both an agricultural and a commercial economic base. The area can be classified as mixed farming and the industry in the area includes general business, trucking, construction, oil exportation, and logging. RMHC's trading area, however, is not limited to RMH; it also includes Alder Flats, Alhambra, Caroline, Condor, Leslieville, Nordegg, and Stauffer. This equates to approximately 16,000 people in their trading area. RMHC is a co-operative type business where it is owned by the users of the firm. One can become a member by purchasing shares of the company. Also, instead of making what a regular business would call "profits," a co-operative makes "savings" that are returned to members as "patronage dividends." RMHC has 7332 active member
The pro of this option is that fertilizer use is growing and those using it now are increasing their application rates. RMHC also keeps their cardlock very clean. Weaknesses Unfortunately RMHC also has weaknesses that could affect its business if any competitors, such as UFA, enter the market and make their business better than RMHC by addressing their RMHC's weaknesses. This ultimately will lead RMHC to keep their customers. This could help them to easily establish their market in RMH. Since farms are using more machines, RMHC can benefit from this since farmers will need fuel for their machines. The other competitive suppliers are Esso, Petro-Canada, Turbo, and Husky. Any customer who needs fuel can expect to have it the same day it is ordered. Retrieved on November 23, 2003, from http://www. UFA has been given a development permit to build a farm supply facility that will include a 2,200 square foot building, a bulk petroleum plant, a gas bar, a cardlock system, and a farm supply distribution facility. The price per litre at their cardlock is . Most of the fuel went to commercial accounts, which amounted to 18. They are just adjusting their price in order to keep their current customers. Since the petroleum industry is in market maturity, RMHC needs to increase the promotion of their marketing mix in order to show the market that they have a competitive advantage. Retrieved on November 23, 2003, from www.
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