Canopy Growth Corporation has done a great job in attempting to diversify its products. In the house, they spent a lot of money on developing different product forms. Although they started with CBD oil and buds, Canopy began to diversify using edibles. Since the decrease in consumer skepticism and the legalization of medical marijuana, there has been significantly growing competition, which has resulted in many small failed companies. Being that competition is high and due to the novelty of the industry, any innovation implemented by one company in the marijuana industry is often being replicated by others. The differentiating factor is the corporate and international strategy. Canopy’s survival can be accredited to their heavy investments in research and development as well as their diversified strategy.

Originally, Canopy Growth focused on making many acquisitions based on gaining financial traction, technology innovation and supporting its focus of cannabis for medical use. For example, Canopy has partnered with KeyLeaf to build an extraction process and technology for marijuana. Some others include Acreage Holdings, Sunniva Medical Inc., and Beckley Research & Innovations. As competition grows within this industry and recreational use of marijuana becomes more accepted, Canopy has begun partnering with companies outside its industry whose image revolves around a lifestyle brand. From these, we will discuss two of Canopy’s most divergent projects.

Sequential Brands Group, Martha Stewart’s parent company, partnered with Canopy Growth on February 28th, 2019. Sequential contains fashion brands like Ellen Tracy, Jessica Simpson and Joe’s. Additionally, their portfolio includes some wellness and active lifestyle brands like Gaiam, And 1, Heelys, Avia, DVS, Spri and much more. Sequential has some overall lifestyle brands as well like Caribbean Joe and Franklin Mint. Though a majority of this brand is focused on some form of fashion, this partnership helps Canopy move it’s brand image towards a more holistic lifestyle, emphasizing health and wellness. (1) Moreover, the partnership gives Canopy access to 70 million households and over 100 million consumers across media and merchandising platforms. (2) Most importantly, an advantage for Canopy moving forward into a holistic brand is Martha’s knowledge of lifestyle and experience with creating sensible products with a focus on animal care. (3) Canopy Growth Corporation has also acquired other companies like BioSteel Sports Nutrition, Cannabinoid Compound Company, This Works, Beckley Canopy Therapeutics, Acreage Holdings and many more just this year alone.

BioSteel Sports is another project which is far from the marijuana industry. Having successfully invested in an alcoholic beverage giant, Constellations Brands, back in 2018, Canopy looked to continue it’s take in the beverage market. Canopy’s 30% increase in shares due to this investment left this segment as a favorable outlet for them. (4) Canopy acquired BioSteel on October 2nd, 2019 with a 72% stake. (6) BioSteel manufactures pre-made drinks, drink mixes and powders for athletes. (5) The acquired company is responsible for sales to 70% of North America’s big four professional sports team. (6) The big four sports are responsible for approximately $26 billion in annual revenue alone, which is a large new market for Canopy. As the effects of painkiller medications continue to be ostracized by athletes, marijuana is being favorably viewed as a better alternative to medications, a major advantage to Canopy’s acquisition. Nevertheless, Canopy is moving into other grounds of beverage production with its cannabis into the sports nutrition and hydration segment. Canopy is doing this all in hopes of expanding its brand and differentiating itself from the competition while still serving the medicinal benefits that cannabis can provide for many people.

Canopy has been able to integrate its business into different markets through partnerships and acquisitions, while still maintaining the company’s brand image and essence. Some of these sectors include the animal healthcare industry, skin & beauty, wellness, pain and sleeping solutions, cannabis derivatives and beverages. (1) Canopy Growth has a large selection of markets currently being served under one brand. Although canopy has involved itself in different markets, it has maintained its business core in serving “medical and recreational marijuana”, whilst moving into the lifestyle territory. This strategy can easily become too unfocused and vague if not carefully managed by Canopy. However, if this is successfully done, this shift is sure to help Canopy stand apart from its competition and warrant their survival as a company in the marijuana industry.

Product Diversification is one of the core elements of Canopy Growths mission. They are “ a multi-faceted cannabis company with a strong investment in brand, market and product differentiation.” (12) Partnering with fashion companies and acquiring a sports beverage company, realizing its potential, reinforce their reason for existence. The acquisition of Biosteel, is a strategic diversification move that allows Canopy Growth to penetrate the untapped sports beverage market while providing a potential alternative to prescription pain medications for athletes. Their partnership with Martha Stewart’s Sequential Brands could be their most beneficial strategies. In addition to a variety of products that include pet health care, Stewart is a highly respected business woman with extensive knowledge and expertise. Her advisory role to Canopy Growth’s future product line gives the growing company a chance to take advantage of those expertise. However, the most significant aspect of this partnership to consider is the marketing and advertising benefits. As previously stated, there are strict regulations that restrict how cannabis companies can advertise their products. Because this line will fall under the Sequential Brands umbrella, millions of Martha Stewart’s customers will be introduced to Canopy Growth directly and indirectly. This could be the diversification move that kickstarts company profits.Hello,

I should write the essay about the company “Canopy Growth” and focus on the part that
“International Strategies: Identify the companys global business breadth. What type of international strategy has been implemented in various global markets? Evaluate whether these strategies fit with the companys organizational goals, and external and internal environments and suggest changes wherever thought to be necessary.”

I attached essays I have submitted them so far about the “Canopy Growth”, so please read all them and start with this essay focusing on International Strategies.

The duedate is tomorrow and 1 page is perfect.

Thank you for reading this.