1.0 Introduction UK supermarket industry has high level of competition with several big retailers. Waitrose is owned by UK retailer the John Lewis Partnership. Sainsbury is the third supermarket chain in UK. In this report, there is an analysis of retail strategies about Waitrose and Sainsbury. In the supermarket industry, the retail strategies of Waitrose and Sainsbury are compared based on the highly competitive industrial environment. Before the main body, there is an overview of macro environment and competition conditions of supermarket industry of UK. PESTLE analysis is used to identify the macro industrial environment and Porter’s five forces are used to discuss the industry rivalry. After that, it is a market segment of Waitrose and …show more content…
The market shares of UK supermarkets are presented in Figure 1. Sainsbury occupies 16.29% of the whole market share, and Waitrose is 5.06%. With high concentration ratio, the supermarket industry of UK has high degree of vertical integration and has formed high level of economies of scale, which results in high entry barriers for new entrants (Jenkins and Williamson, 2015). It is calculated that independent retailers has declined by one third within recent 5 years (Economics Online, 2015). Bargaining power of suppliers of UK supermarket is low since big retailers of the industry show their business power to suppliers. Prices from suppliers are low and there is a large profit gap between suppliers and retailers. Supplier power is weaken due to the cheaper product sources overseas. Consumers have strong power to make decisions based on low switch cost and homogenized products within different UK supermarket retailers. Both Waitrose and Sainsbury face strong threat from substitutes. In current UK supermarket chains, there are lots of UK supermarkets competing in the market. Tesco is the most powerful competitor for supermarket retailers with the market share of 28.5%. And within the free trade zone of EU countries, UK supermarkets face higher level of competition since its competitors come from both local, nation, and EU members. In other words, the bargaining power of competitors are strong as well. UK supermarket industry has a high level of industry
As we all know, customers naturally prefer a lower price of the same product, and ALDI can provide same or higher quality products with lower prices than its competitors. ALDI realizes lower costs of its products by cutting down its rent, energy costs, labor costs, and other unnecessary expenses, such as credit card discounts, and etc. Therefore, the choice of lower price makes the bargaining power of ALDI’s customers weak. What is more, ALDI’s buyers are fragmented and don't not have a creditable backward integration threat, which means no buyer can have any particular influence on ALDI’s market since the purchasing volume is only the tip of an iceberg. Hence, the not concentrated buyers also weaken the bargaining power of ALDI’s
An Interpretation of the ratios for Marks and Spencers and the House of Fraser Findings = = = = =
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory.
LongPest Analysis of ASDA Superstores Introduction ASDA, is the Britain's best value food and clothing superstore, and became part of the Wal-Mart family on 26 July 1999. Wal-Mart stores, Inc are the world's largest retailer, with $191 billion in sales in the fiscal year ending 31 January 2001. The company employs more than 1 million associates worldwide through nearly 3,500 facilities in the US and more than 1,000 units in Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany and the UK. More than 100 million customers per week visit Wal-Mart Stores. ASDA is a private sector organisation, and before Wal-Mart took over ASDA, ASDA Stores were only based in the local and national parts of UK.
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
Today dairy farmers across Australia are struggling due to the ‘Milk Wars’ between Coles and Woolworths, only stocking their own branded products in order to make larger profits and reduce their prices to increase their consumer range. If you do not see this as a problem, you must open your eyes. In June 2014, it was recorded that West Farmers Limited own 33.5 percent and Woolworths Ltd own 39.6 percent the Market Share in Australia. This combined is 73 percent in the total market share. If you do not see this as a problem, you must open your eyes. Have you noticed the rapid decrease from when you were a child to having a local family owned grocery store rather than large monopolies dominating the industry. If you do not see this as a problem,
Operation management is that function of an organisation which is concerned with the design, planning and control of recourses for the production of goods and the provision of services (Bennett et al 1988). Finch and luebbe (1995) stated that in business, the operation functions is charged with the management of recourses to produce a product or services, including facilities, processes, plans and inventory . Operation management plans, organizes, controls and improves this use of process, inventory, work forces and facilities and equipment in order appropriately to determine the ranking of the competitive priorities.
In the recent years the development of the retail market has been greatly changed by external factors such as; political, economical, social, technology and legal (PESTL). This is also known as external macro environment, which concerns all businesses. This report will show what impact it has caused the retail business in the last forty years through these factors.
Problem Areas Sainsbury’s quite often faces the problem of lacking in stock which causes discomfort to customers, because the wanted item is missing and therefore they wasted their journey. This problem reaches its peak in holiday season when the demand is much higher of certain goods. Solution to that would be pre-stocking and preparing for those scenarios through doing risk analysis for the operations.
The concept of grocery stores and supermarkets industry is an idea that has been created in order to make easier human`s life. According to the study “The Evolution of the Supermarket Industry From A&P to Wal-Mart” by Ellickson, who explains that a century ago people had to jump from one store to another store in order to get different products such as milk, meat, bread and other products. In addition, in the article “Understanding Groceries Industry” by The Reinvestment Fund, they state that back in a day the concept of grocery stores was created based on the owner`s store needs. Later on, as the development of the society and the standards of customer needs increased, the owners of the grocery stores started to be more focused on their customer needs. Also, the study of “Understanding Groceries Industry” shows that the supermarket and grocery stores industry is in their mature stage as they have developed an extensive and solid customer service.
In General, demand, supply and price are the major components of the economy in both competitive and non-competitive markets. Exchanging goods is occurring everyday and everywhere in the world so in order to maximise profit and the use of resources, companies have to know approximately the quantity of goods that customers require. This short essay will discuss the market mechanism in general and particular in food market in the United Kingdom.
Dunnes Stores is an indigenous, family owned Irish Company. The Company is a retailer in both the food and textile market who work around the principle of providing competitive prices, high quality products and a vast variety of choices. The company’s motto of “Better Value” looks to draw in all these principles together.
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
Often in post-colonial South African literature the traumas of the past come to surface in the present. This dynamic between the past and the present not only demonstrates the magnitude of the past, but also shapes the possibilities of the future. These moments are often captured through an explosive, apocalyptic lens which is reflective of death and the violent trauma of the past. The Restless Supermarket by Ivan Vladislavic and Thirteen Cents by K. Sello Duiker showcase these destructive moments in which the past emerges into the present in order for foundational change to occur. Ultimately, these moments of transition from the destruction and violence of the past toward the newness and possibility of the future are not limited to the