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I need an essay about the company that is Canopy Growth

and it should be followed 

"Value Chain analysis" : Determine your firm's Competitive Advantage/Core Competencies vis-a-vis its current competition using the value chain model by one page.

I will attached essays I have submitted so far and please read them before starting the essay.

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Canopy Growth Corporations

A Company with High Ambitions

As North America’s leading producer of legal marijuana, Canopy Growth Corporation has

always been ambitious. Canopy, formerly Tweed Marijuana Inc. was founded by Bruce Linton,

Mark Zekulin, and Chuck Rifici in 2013 with the objective of providing affordable medicinal

cannabis to patients. Their concept of “Compassionate Pricing” would become a standard

industry-wide. This is just one of the few benchmarks the company has set.

In 2014, Tweed became the first publicly-traded cannabis company in North America with stock

being traded on the Toronto Stock Exchange. The following year, the company purchased an

abandoned Hershey factory in Ontario, where they still operate to this day. Later in 2015, the

company grow from“..a singular enterprise to a multi-branding holding company that can focus

on diversified markets.” and changed their name to Canopy Growth Corporations. In 2018,

Canopy Growth Corporations achieved another first when there were the first cannabis company

to have the shares made available on the New York Stock Exchange.

Figure 1. International Footprint (Canopy Growth 2018)

Currently, Canopy Growth has a total of 11 operating facilities in Canada in addition to their 10

other facilities in places such as Poland, Columbia, and Denmark. And, by partnering with

numerous brands, they are able to provide their customers with a wide variety of medicinal and

recreational products such as “dried flower”, oils, concentrates, supplements, and hemp.

The company's current mission is to elevate the experiences of its medical and recreational

consumers, and drive the biotechnology industry forward. This well-articulated statement clearly

defines the purpose of the company. Moreover, it’s realistic and motivating. The main focus is

on satisfying the needs of the recreational and medicinal customers as opposed to the company’s

products. Customer experience is a key factor for a company’s growth. since if a company meets

and exceeds customer expectations by delivering quality products as promised, the company is

destined for growth and success. Additionally, the company’s emphasis on their aspirations in

the biotechnology industry reinforces their desire for continued growth and innovation. It can,

therefore, be concluded that this mission statement is quite effective.

The vision of Canopy Growth Corporation is to be a leading cannabis company in the globe.

While this statement is clear and describes the company's desired future state. The statement is

broad and lacks distinctiveness as it can be applied by any organization in the cannabis industry.

The company would have taken another step to align its intended efforts to complement this

vision. Surprisingly, the Mission Statement is more inspirational. A more effective vision

statement would have expanded on this. Currently, it’s too generalized and so the company

might scatter its efforts into other goals not aimed at supporting this vision statement. This can

inhibit the company’s direct progress toward this vision.

Canopy Growth’s values are aligned with Corporate Social Responsibility. Their values

statement is as followed. “Canopy Growth is committed to being a responsible member of our

community and industry wherever we operate. We pride ourselves on investing in and being the

leader in creating solutions to cannabis-related issues. Now that we’re on the verge of legal

access to regulated, recreational cannabis, we’re stepping up to do our part to ensure education

and responsible use are at the forefront of the cannabis conversation.” This statement is lengthy

but hit all of the right notes. Canopy Growth is determined to find solutions to cannabis related

problems and had made strategic partnerships in to have their goals realized. They have

partnered with Mothers Against Drunk Driving and Canadian Drug Policy Coalition. Another

alliance is with Parent Action on Drugs (P.A.D). It is important that their customers and

investors know that they are passionate about growth in their industry as well as educating and

corporate social responsibility. This statement is supported by their numerous alliances. Thus it

is quite effective.

The performance of Canopy Growth Corporation over the last five years has increased

tremendously. According to Bloomberg data, in 2014, the company reported sales of $3.4 billion.

In 2015, the revenue reported sales of $7.7 million. In 2016, there was an increase in sales as the

recreational market expanded and the company had $12 million in revenue. At the end of 2017,

the company’s revenues rose considerably to $39.9 million following an increase in the purchase

of medicinal cannabis units (Kristine, 2019)..

The year 2018 saw an increase in the amount of cannabis harvested and revenues rose to $ 77.9

million. In 2019, the company hopes to achieve an extreme increase in revenue earnings

following its expansion into the skin care market. In an interview with Susan (2019) of

Bloomberg News, the company's CEO Bruce Linton stated the company's team productivity has

been quite impressive over the last five years and this has been a contributing factor to Canopy’s

success​. Despite it’s increase in revenues, Canopy Growth Corporation continue to report losses

and investors continue to question the company’s profitability, resulting in the termination of

Co-founder, Bruce Linton. Canopy’s lack of profitability is due to its focus on investing in long

term growth, keeping an entrepreneurial mindset in a rapid growing market, which resulted in its

phenomenal 90 patents and continued revenue growth, forecasting the company to have large

future rewards and market share.


● Canopy Growth Corporation. Retrieved from​ ​www.canopygrowth.com

Freeman, S. (2016). Canopy Growth Corporation to acquire Mettrum for $430

M-making a mega-company serving half Canada’s medical pot users. Retrieved

June 28, 2017

● Kristine Owram (2019). Canopy Analysis. Retrieved from



● Paul Monica (2019).Canopy’s cannabis business growth. Retrieved from



● Susan Berfield (2019). Canopy’s Bruce Linton. Retrieved from



● Canopy Growth. (2019, September 11). Retrieved from


● Our Story. (n.d.). Retrieved from​ ​https://www.tweed.com/en/our-story

● Marijuana company heads to New York Stock Exchange. (2018, October 25).

Retrieved from



● Our Story. (n.d.). Retrieved from​ ​https://www.canopygrowth.com/about/

● Corporation, C. G. (2018, December 23). Tweed Marijuana Inc. Renamed Canopy

Growth Corporation. Retrieved from





CANOPY GROWTH  CORPORATION  The External Environment 


INTRODUCTION  An organization's external environment is significant in that, in many ways, it influences their

ability to succeed. Much of Canopy Growth’s vision is to expansion. Therefore it is imperative to

understand how these external elements can encourage, as well as hinder, their ambitions.

Implementing a PEST analysis is a simple, but very effective, tool that allows an organization to

understand how political, economic, social, and technological trends impact Canopy Growth and

the legal cannabis industry.


Political Influences   The most significant political influence for Canopy Growth would be that of the Canadian

Government. Despite it being a multinational company, this is where their operations began and

still primarily exist. When established, the laws surrounding cannabis restricted the use of

cannabis for medicinal use only. After being elected in 2015, Prime Minister Justin Trudeau took

an initiative to reduce criminality associated with sales of non- regulated cannabis. As a result, in

October of 2018, the Cannabis Act has made the use of medicinal and recreational cannabis legal

across all of Canada. This law limits the sales and production of cannabis products to

organizations licensed by the government.


As previously stated, the Cannabis Act of 2018 was designed to reduce criminality by restricting

cannabis access to minors (below the age of 18) and profits of illegal distributors. Prior to the

law, illegal sales were estimated at CAN$6 billion, or $4.4 billion USD, a year.(5) Under the

law, one is legally allowed to possess no more than 30 grams of legal cannabis products with a

THC level of .3% or more. Much like alcohol restrictions, driving under the influence will also

result in serious consequences. Moreover, even if it is legal in that country, it is illegal to cross

any national borders with cannabis products. This includes bringing outside cannabis into the


In addition to these regulations for domestic consumption, the Cannabis Act has restrictions

pertaining to importing and exporting cannabis products. Importing is strictly restricted to

“starting materials” for new licensee’s. Exporting is limited to medicinal products or scientific

research in countries/states where it is legal. Additionally, the producer has to have a permit for

exporting in addition to all other permits required as a legal distributor. Permits are given after

careful and strict consideration by Health Canada. They are careful to not break any obligations

set forth by treaties and ensure exports are in line with the regulations of the Cannabis Act.(6)

As strict as the government and lobbyists have been about who and how individuals are allowed

to buy and sell, there appears to be a disconnect in how the cannabis industry operates in regards

to the safety of their environment. Many consumers complain about the excessive packaging

used by legal distributors. This is a direct result in the guidelines created by Health Canada.

Before legalization, much of cannabis products were sold in plastic bags that were easy to

dispose of but made access easier to young children. Under the new laws, packaging must be

able to prevent any contamination to the product, tamper-proof, and child-proof. The containers

used now are described as large plastic containers that are disproportionate to the amount of

cannabis inside. This is due to all of the required information that are required by law to be

printed on the package. These strict regulations make it incredibly difficult for distributors to

provide containers that are more environmentally friendly. This has had an impact on whether or

not someone will buy from a legal distributor.(8)

Economic Issues 



Currently, Canada has an economic freedom score higher than any other American regions and

above world-wide averages at 77.7. Having the 10th largest economy, the government is focused

on trade diversification, increasing exports, as well as supporting their domestic industries small

and large. According to the 2019 index of economic freedom, “Canada’s economic

competitiveness has been sustained by the solid institutional foundations of an open-market

system and a high degree of regulatory efficiency.” (9)


The cannabis industry is fairing well since legalization in 2018. This “Budding Market”(10) has

seen an increase in usage since legalization. As it is a newer industry, it should come as no

surprise that it is estimated to provide new jobs and boost local economies. This is evident in the

amount of licenses issued since legalization. Moreover, it is anticipated that the Canadian

government will collect $400 million annually from taxes levied on sales of cannabis at $10 a

gram. (11) However, the high levels of taxation can be detrimental to Prime Minister Trudeau’s

intent on reducing criminal activity in relation to cannabis products. . The heavier the tax rate

imposed on retailers, the likelihood that customers will turn to illegal sources. This can be seen

in the state of California, where legal distributors are plagued by taxes that make it impossible to

compete with the black market.(12)

Socio-cultural Trends  Cannabis has been used in many cultures as medicine and other aspects for thousands of years,

as early as 10,000 B.C. in China. Due to the opium epidemic and surge in alcohol consumption

post Civil War in 1800’s, there were increased concerns of mind altering drugs and effects of

similar products. Consequently, other drugs were also categorized as harmful products, including

marijuana and has become illegal since 1937. In the 1930’s a film was even produced to teach

the public about the dangers of marijuana which skewed the public perception even further. In

1970, it was officially listed as a Schedule I substance in the U.S. Controlled Substances Act.

Since then for almost 90 years the opinion of marijuana as a whole in the eye of the public was

similar to the views of psychedelic drugs as detrimental and sometimes even fatal products.

However, this stigma soon began to change, giving way for a new view on cannabis. As the

potential medical benefits of marijuana became more publicized, the perspective of marijuana

changed. There was a significant shift in consumer perspective over cannabis as well as

government policy as more knowledge developed. In just 50 years, the amount of Americans

who believed marijuana should be legalized increased five times as much, up to 62%. This plant

is now widely accepted for patients with chronic pain and seizures. Change in consumer values

for more authentic, transparent, natural lifestyles supported the movement towards accepting

marijuana use. (3)

Soon enough once illicit substance, became legalized in over 33 states, of which 10 states allow

recreational use of marijuana, with rapid growth of marijuanas popularity, breaking it’s previous

stigma. CBD’s, a natural compound within cannabis plants, gummies today are the third most

researched food term on Google. It

also comes in many forms, continuing to win consumer popularity. This industry has grown

tremendously in a short period of time and continue to see support from other companies,

winning heavy investments. In 2018 the industry for legal marijuana in the U.S. consisted of

$10.4 billion and 250,000 jobs, expected to increase to $17.5 billion in 2030. Worldwide,

cannabis spending is expected to reach $66 billion in 2025. Overall, the consumer and

investment views are strong, projecting a large increase in the medical marijuana industry and a

significant increase in legal cannabis spending.


Technological Trends  Technology is a major player for the future of this industry. An industry that is in its early phases

and whose previous illegal sales consisted of predominantly cash sales, companies can now

better understand cannabis consumers purchasing habits with new technologies like software as a

service (SaaS). This also enables the industry to properly track products, which was otherwise

not possible previously.

Additionally, the cost of growing cannabis is relatively high, which is why technological

innovations as small as LED lights spectral tuning, improved hydroponics and Tesla’s

Powerback solutions are revolutionary to the marijuana industry, giving companies more control

over production. Biosynthesis has also paved the way for efficient extraction techniques that

allow for better on-demand production. Seeing that sales and consumer confidence are expected

to increase, efficient production is key go meeting a rapid growing demand. Some technological

innovation now facilitate the at home use of marijuana. This includes products like infusers,

vaporizers, smart grow boxes, and more (1). As technologies like AI, machine learning and

blockchain continue to grow, we may see it’s application in the cannabis industry, especially

within production.


​Porter's Five Forces Analysis

The cannabis industry has not been fully exploited to maximum potential due to the legal barriers

in place. However, Canopy Growth Corporation has been able to operate within the legal

jurisdictions in North America. This paper shall, therefore, discuss the company's business policy

that has harnessed its growth.


​The company was faced with various barriers of entry at the beginning. At first, cannabis was 

not a legal drug in Canada. These legal issues made it hard for the company to obtain permits for

the production and sale of cannabis. However, the company received a breakthrough when

marijuana was legalized for recreational use (Cox, 2018). Canopy Growth has a great deal of

competition the company must look out for. One of the main competitors is Aurora Cannabis

because Aurora so far have been 20 percent of the marijuana market in Canada. Also they

produced over 700,000 kilograms per year. Another competitor that Canopy Growth must watch

out for is Cronos Group because Cronos used to be on top of the race to become the alpha

company but due to being to slow on establishing assets, it lost its lead. Canopy Growth has to

make sure they are selling products that the other companies don’t have. Also since the

Marijuana is an upcoming market, focusing on getting curious/new customers should be a

priority to make them become loyal consumers.


Canopy Growth has lot of suppliers which makes supplier power low due to Canopy’s

ability to just switch suppliers. Due to high demand of the marijuana industry, suppliers

have to be very reasonable with Canopy Growth in order to achieve profits, which also

causes suppliers to have less power. Canopy Growth just needs to find the right suppliers

that has low costs but due to its abundance of suppliers, using different suppliers

shouldn’t be a problem. The company's wide range of products is also a strength that has

allowed the company to generate more revenue and therefore strengthening its position

in the cannabis industry. Canopy Growth Corp has since ventured into a global market

and thus diversifying its operations.


Having products that are unique from others should be a top priority for Canopy Growth because

in this industry, having someone hooked on your products will get you more buyers. If a

customer likes the product, they will buy it in bulk, because it’s marijuana, and it will make it

harder for the customer to ever switch if the quality is top notch. Since the buyer will buy the

products in bulk, prices shouldn’t be a problem due to the demand and quality. Canopy Growth

should highly market and make sure it’s product are unique to build a large foundation of loyal

customers. Doing so will provide a lot of sales and henceforth a profit.

New Entrants

The threat of new entrants isn’t a big problem for Canopy Growth because the industry it’s in is a

hard industry for new entrants to come in. This is due to the fact of the government heavily

regulating laws for marijuana and the fact that Canopy Growth sells differentiated products

instead of standardized products. If Canopy Growth keeps using it’s competitive advantage it has

and keep having unique products, new entrants would have a lot of trouble competing against

them. Canopy Growth Corp has been able to overcome threats of new entry. Besides, by

producing raw materials, the company has been able to deal with supplier power. The buyer

power of the Canadian people has also been exploited.


A threat of substitutes would be the Illegal Marijuana Markets because if the prices are better

there then customers would hesitate to get products from Canopy Growth. To stop that from

being a big threat, Canopy Growth needs to make sure it’s products are great quality especially

more then the illegal products, also having unique products that only Canopy Growth can

produce, will make it harder for customers to find an alternative.

Porter Five Forces for Canopy was Growth


With the strong political support for legalized cannabis usage in Canada, and the continued

efforts to increase legalization in the U.S., Canopy growth has major potential to maintain their

industry advantage. As the industry continues to grow, there will be higher demand for

marijuana and other cannabis products. Economically, it makes sense for them to increase their

efforts to maintain their sympathetic pricing model so that they are competitive with black

market distributors and satisfy government regulations. Biotechnology will be necessary for

companies to keep up with rapid changes. Intellectual Property will also be a growing concern as

new players continue to be attracted to the industry. As this can start becoming a commodity, this

will be a huge risk for cannabis companies. Additionally, higher demand in this new and

evolving industry will require FDA understanding and steeper regulation.


REFERENCES 1. https://www.digitaltrends.com/home/marijuana-tech-for-home/

2. https://finance.yahoo.com/news/tech-solve-cannabis-industry-biggest-233000787.html

3. https://www.investopedia.com/articles/investing/111015/future-marijuana-industry-ameri


4. https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis.html

5. https://amp.dw.com/en/canadas-cannabis-industry-just-beginning-to-bud/a-49824389

6. https://www.canada.ca/en/health-canada/services/cannabis-regulations-licensed-producer


7. https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/producing-s


8. https://globalnews.ca/news/4581623/excessive-cannabis-packaging/

9. https://www.heritage.org/index/country/canada

10. https://vancouversun.com/cannabis/cannabis-culture/cannabis-trends/cannabis-consumpti


11. https://ocannabiz.com/archives/24589

12. https://globalnews.ca/news/5403579/cannabis-taxes-brought-in-186-million-in-five-and-a