In business, it’s often difficult for competitors to hit a moving target. The following three companies are not standing still when it comes to strategic growth initiatives.
1. Cogeco Cable
Cogeco Cable (TSX: CCA) is the 11th largest hybrid fibre coaxial cable operator in North America. Its current focus for Canadian business customers is a revamp of its Internet packages for business. The company understands the need businesses have for reliable high-speed internet, in packages that fit business budgets. Cogeco recently introduced Cogeco Business Ultimate. It also offers Business Starter, Business 28 and Business Premium. Cogeco’s Business Ultimate offers download speeds of up to 120 Mbps and upload speeds of up to 10 Mbps.
Why is this important to investors considering Cogeco Cable? Because this initiative is geared at growing its business customer base. Johanne Hinse, VP of Sales and Business Development for Cogeco Cable Canada, stated, “The demand for increased speed and better performance regarding Business Internet services is rapidly growing. Businesses are looking to increase their productivity and optimize their efficiency using an ultra-fast Internet connection.”
In 2013, Cogeco expanded its High Definition (HD) TV programming line to 150 HD channels in the majority of its important Ontario market. Moreover, Cogeco acquired Massachusetts-based Atlantic Broadband in 2012. Atlantic operates specific cable systems in Pennsylvania, Florida, Maryland, Delaware, and South Carolina. This is Cogeco’s opening into the U.S. market.
FirstService division Colliers International is a leading global company in commercial real estate services. Its strategy is to expand its market share in core markets and to broaden the services it offers. Colliers International recently acquired Briant Champion Long (BCL). BCL is one of the UK’s foremost independent retail property specialists. Colliers UK will integrate BCL into its operations. The BCL acquisition is part of Colliers growth strategy in the UK. Colliers International has 482 offices around the world.
The company’s FirstService Residential division engages in residential property management in North America. FirstService is driving growth through its rebranding of all property management operations to FirstService Residential. Part of its growth strategy is selective acquisitions. In 2013, FirstService Residential acquired Curry Association Management (a division of Curry Investment Company), Missouri’s largest residential property management company.
3. George Weston
To remain competitive, the company continues to invest in new and innovative products. George Weston is concentrating on maintaining or increasing market share in Loblaw’s core food and drug businesses. These businesses account for more than 85% of total revenue.
The Loblaw business launched more than 550 new control brand products in 2013 (product packaged for exclusive distribution in a given geographical area/specific markets). Loblaw brands include its popular President’s Choice products.
Loblaw recently closed its $12.4-billion deal to buy Shoppers Drug Mart. The acquisition resulted in 2,300 corporate, franchised and associate-owned stores across Canada and approximately 1,800 pharmacies. It’s the combining of Canada’s number-one grocery retailer and the number-one pharmacy/beauty retailers.
Galen G. Weston, Loblaw Executive Chairman, said, “The most successful partnerships are grounded in strengths that complement each other. Loblaw and Shoppers Drug Mart are perfect partners. We will drive growth and profitability through our unmatched mix of store formats, products and offerings. This is truly a case of the whole being greater than the sum of its parts.”
Foolish bottom line
Quality growth initiatives often foster greater sales and profits. These companies are focusing on strategic growth to bolster bottom lines. For investors, it’s worth considering proactive companies aggressively seeking increased market share.