Although the Loblaw has majority market share holds, the company faces intense competition from many types of grocers such as Sobeys Inc., Metro Inc., Walmart; and many types of non-traditional competitors, such as drug stores, warehouse clubs and specialty stores (organics & ethnics). High rivalry intensity makes an industry more competitive and potentially decrease profit margins. Entry Barriers: As there are fierce rivalry between competitors, the barriers to entry in the Canadian grocery market is high. The large food retailers account for the majority of the market revenue in Canada. Thus, smaller interdependent retailers can’t really compete with such-alike Loblaw or Sobeys or Walmart.
In considering how much more complete Walmart’s response is in comparison to Loblaw’s, it is fitting that Walmart received a higher carbon disclosure ranking of 92% (Gomez, 2015). Metro’s complete carbon disclosure project, was not made public, but company scored an 89% which was higher than Loblaw’s score. In using metro CSR report, they company’s approach is to reducing lighting (energy) by using LED, and also like Loblaw’s, Metro monitors refrigeration leaks and waste (Metro Inc., 2015), (CDP, 2015). Therefore in terms of global warming and pollution, Loblaw’s is least advanced of the three industries due to lowest score; even despite the fact they meet more regularly than
Company Situation Loblaws is the largest and most profitable food retailer in Canada. It is a supermarket chain, financial services provider, telecommunication services provider, and an apparel & footwear company. It has the highest market capitalization and net income among its competitors in the retail industry in Canada. Competition: - Company Market Cap(Mil) Net Income (Mil) Dividend Yield% Loblaws Company Ltd 26,348 1,684 1.6 George Weston Ltd 14,081 813 1.6 Metro Inc 9,228 591 1.6 Empire Co Inc 6,960 147 1.6 North West Co Inc 1,565 73 4.0 Organic Garage Ltd 10 0 - Industry Average 16,459 754 - SWOT Analysis Strengths: • Great financial performance. • Strong market hold.
LOBLAW COMPANIES LIMITED Loblaw Companies Limited is one of the several subsidiaries of George Weston Limited a leading food processing and distribution company based in Toronto. Loblaws is a leading distributor of food products, general merchandise, drugs and financial products in Canada since 1919. As of Financial Year 2014 Loblaw operated 615 corporate stores and 527 franchised stores in Canada. Loblaw’s operates its business through three main segments: Retail, Financial Services and Choice Properties. The retail segment has its primary focus on food.
It is believed that Wal-mart respect the idea of makes their customer shopping decision based on price comparison, experience and accessibility. What they could improvise is to come out with more plans with supplier to lower the products price so as to compete with their competitors. If Wal-mart is able to earn the profits by selling lowering their prices, so do their competitors. (Gallagher, S., 2008)That’s is why all along, Wal-mart always focus on this factors to attract more customers and also to prevent from losing their loyal customers. Due to the world is changing every minute in our life, there are many things that Wal-mart need to take note of.
Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high. Tesco faces pro-found competition from its afore mentioned competitors. There are no switching costs for consumers which in turn intensifies the competition. Extreme discounters such as Aldi and Lidl have also caused
Walmart’s main target segment in competing with cost is with Amazon. Online sales are booming, and Walmart plans to increase their e-commerce initiatives. Walmart plans to turn the majority of their shoppers into online shoppers by offering unique features that are not available for Amazon shoppers. Walmart would first need to improve their website to make the website easier to shop and user-friendly. The most useful feature that Walmart can offer their customers is the capability of offering in-store returns and pickups.
Consumers always prefers to the most famous and trustful brand. Product quality and price of brand also affect the consumer buying behavior. Consumer wants the product having best quality and wo talk about cosmetics no one take risk for it because it directly affects our skin. Product quality is the expectation of a consumer. If brand is not able to meet the consumers expectations, consumer consider it’s a low-quality brand.
Retrieved from https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html. Ingram, D. (2018, February 04). Link Between the SWOT Matrix & the Grand Strategy Matrix. Retrieved from http://smallbusiness.chron.com/between-swot-matrix-grand-strategy-matrix-77953.html. Ways Wal-Mart Stores Inc. Is Using Technology to Improve Its Shopping Experience.
How, in your opinion, did those strategies contribute to the retail chains international success? If you look to how Wal-Mart started its global expansion, at first in mind they took it as a trial and error method and learned about the countries they have entered and merged with local retail stores. Merging gave them inside information as to how the people in the country carry out their shopping, once merged and with goodwill, supply chain, and knowledge in place they took it forward and improved it may it be the supply system, technology, replenishments etc. These strategies at most especially the merger to gain local knowledge and in a foreign country show themselves as locals, showing they understand the locals and serve the locals paid dividends. Wal-Mart inability to localize operations to adapt to local culture and business methods were cited as reasons for it exist from South Korea and Germany in 2006.