Kroger would be Walmart’s direct competitor. After Walmart Kroger is the second largest retail store. A strategy for Kroger is that they are able to offer private-label products, keeping prices low, as well as offer more product variety to its customers compared to Walmart. This strategy attracts high-income customers and generates higher revenue. The chain is renowned for excellent its customer service, loyalty program, and extensive
Weaknesses High priced products: Starbucks is being differentiated with the high quality of products but during the economic recession, consumers might have to switch costs to competitor products that the prices of their products are low. The premium prices can create weaknesses to the company that is trying to succeed in less developed countries. High dependence in the U.S. market: Starbucks operates 7.049 stores in the U.S. while 8.078 stores are being operated in total America and 2.116 stores internationally. The percentage of stores operated in U.S. is 69% which diminishes long term growth of Starbucks. file:///C:/Documents%20and%20Settings/marketing/%CE%A4%CE%B1%20%CE%AD%CE%B3%CE%B3%CF%81%CE%B1%CF%86%CE%AC%20%CE%BC%CE%BF%CF%85/Downloads/Starbucks%20Fiscal%202013%20Annual%20Report%20-%20FINAL.PDF
During the past decade, Wal-Mart, Kmart and Target three retail giants generate a combined sale of $123 billion (External Analysis Wal-Mart 2015). The success of the retail industry contributes largely to the advancements of science and technology and reduced costs. In the future, the success of Wal-Mart still relies on consumers’ concerns for value shopping and saving money. The company should pay close attention to the needs of customers and provide high-value and low-price products for consumers. Industry environment analysis includes five aspects: threat of new entrants, power of suppliers, inter-firm rivalry, power of buyers and threat of substitutes.
There is omnipresence of the Wal-Mart stores within the operating regions an aspect that allows the firm to increase its penetration in customers lives and that increases the probability of a purchase. The aspect of leveraging on its bargaining power to force supplier’s offer the firm items at lower process has been explained before. The benefits obtained from those low prices are directly passé to the clients through offering low prices an aspect that still makes the firm stand out of its competitor’s top
Low global presence: Although the company is the largest retailer in the world, it operates in few countries outside the U.S. This can be detrimental in future, if the U.S. market staggers. Opportunities i. The growing trend of healthy eating: this trend has led to higher demand for grocery products. This is an opportunity for Wal-Mart to expand its grocery store and increase its income from this field.
Does business growth and success always acquaint to community growth and success? Bartow J. Elmore explores this question in his book, Citizen Coke: The Making of Coka-Cola Capitalism. Elmore looks at the price that the environment and the public has paid to allow Coke to rise into the power it is in today. With operations in “over two hundred countries and selling more than 1.8 billion beverage servings per day”(7), you simply cannot deny the influence and power that Coke has. Coke is a widely successful business, but their growth has come at a cost.
Other advantages of its global operations, including online shopping, joint ventures, such as in China, and local recruitment, including senior management positions (park, Bertels and Elsum, 2011). Because of its size and facilities, Tesco can buy in bulk, benefiting from economies of scale (Blythman, 2012). This enables companies to reduce prices in order to remain attractive price, and with British retailers such as Asda
As 70% of Coca Cola’s sales are generated outside USA, the organisation is highly dependent on global economic conditions (Taylor, 2000). Deeper recession may force Coca-Cola to make its supply chain more efficient, to change their bottles and undertake redundancies in order to achieve cost reduction. If taxes on sugared beverages become higher, Coca-Cola may be forced to increase prices, which may in turn negatively affect the demand and consumption (Jacobson and Brownell, 2000). Coca-Cola also uses ‘Think local, act local approach’ in order to set prices according to the local income levels (Weisert, 2001). The main social factors affecting Coca-Cola are ‘healthy-eating’ movement and increased people’s interest in social and environmental change.
After routing the low price store brands, coke has chosen to reposition itself as a “Premium” brand and raise prices.”. When people purchase Coca-Cola, they do not only purchase the beverage but also the image that goes with it, therefore having the price inflated restates the fact that the product is absolutely of better quality than its competitors. This is referred to as value-based pricing. Over a decade ago, Coca-Cola launched a 200ml bottle that costs R5- an affordable amount for the low income audience. Earlier Coke used Cost based pricing.
As Innocent was a premium brand, so its competitors like Waitrose has introduced low cost fruit drinks due to which Innocent was losing its customers. So now Innocent must review all its marketing strategies so they can adopt to new environment and can increase their sales. Socio-cultural Factor Innocent mainly focuses on being