Cold Storage Case Study

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Cold Storage Singapore
Introduction

The name “Cold Storage” is iconic and has a unique story in the corporate histories of Singapore. Established in 1903, the Company had a small depot that stored and sold mainly frozen meat from Australia and hence the name. From that, it has grown to become the premier retail player in Singapore.
From 1965, Cold storage adopted the concept of multiple retailing to achieve economies of scale, for which it carried out bulk buying activities and distribution of food products to a network of stores throughout Singapore and Malay Peninsula. Cold Storage excelled in the manufacturing of condensed milk and other milk products such as UHT milk, Magnolia soft drinks and soya bean milk to serve the ever changing consumer taste buds. In 1993, Dairy Farm International Holdings, who had plans on expanding its operations in Singapore, acquired Cold Storage with its 11 stores at that time. Cold Storage’s primary strategy remains unchanged even now. Its vision is to always cater to customers’ unique needs. Cold Storage started the Fresh Food Distribution Centre in Singapore back in 1999, once it realized the importance of guaranteed freshness for food items. This distribution centre is a composite multi-temperature warehousing for fresh and frozen food distribution

During its initial days the Company's primary concern was to have a quick and profitable turnover of its imported meats and range of products. Later Cold Storage shifted its system from counter-services to self-services and introduced the supermarket to Singapore. Cold Storage was the first supermarket retailer in Singapore to install a fully integrated cold chain distribution system from supply chain to store level to ensure the safe handling ...

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...y have an edge over its competitors.
Threat
It faces a threat from its competitors like Fairprice and Sheng Siong. The greatest threat it faces is from NTUC Fair Price which caters to middle and low class customers and have a very wide customer base. NTUC Fair Price has over 100 outlets in Singapore which is the biggest threat to Cold Storage which has close to half the number of outlets. Singapore which is a comparatively densely populated city and people prefer going to outlets more often than do the consumers in US. People in a normal household would visit and shop for grocery two to three times a week. This puts Fairprice at an advantage over Cold Storage since the presence of these outlets is much more. Also Fairprice offers similar range of products and similar levels of freshness and hygiene but at lower prices when compared with Cold Storage.
(PWC, 2005)

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