Marion’s conclusion about supermarkets and their overall business strategies seem hard to believe but are easily accepted. Her detailed findings of the matter require more analysis to see if they produce any merit. Marion’s essay is laid out so that it provides
Loblaw success can be attributed to its efficient operations, its customer loyalty programs, the popularity of its private label brands, and large-scale purchasing efficiencies. Loblaw has showed a good understanding of the Canadian grocery market due to its time-tested strategy. The company has presence in virtually all Canadian provinces with a tailored value chain that helps them achieve high revenue and standards. Additionally Loblaw offers competitive wages and benefits. Loblaw effective use of the 4+2 strategy had made it the market leader. The excellent execution of its strategy has allowed the company to be a differentiator among other Canadian grocers (especially with its President’s choice brand) and capturing about 32% of the Canadian grocery market shares. See Loblaw’s SWOT analysis below.
Porter’s article has strong analysis and provides persuasive examples to support his argument. He carefully explains the five forces and demonstrates how they affect the competition in business. For example, when discussing about rivalry among existing competitors, Porter briefly mentions about different forms of rivalries and its intensity. After that, he analyzes the situations that lead to different level of intensity in rivalry carefully. Porter illustrates that “ The intensity of rivalry is greatest if: Competitors are numerous or are roughly equal in size and power…Industry growth is slow…Exit barriers are high…Rivals are highly committed to the business and have aspirations for leadership, especially if they have goals that go beyond
What is Panera Bread? They serve quality food with speedy service but not too fast like McDonalds or other fast food restaurants nor as expensive and slow as full dine in restaurants (i.e. Chili’s or Applebee’s). “Panera Bread offers freshly baked artisan bread to neighborhoods in cities throughout the country. As of September 27th, 2016, Panera Bread has 2,024 baker-cafes in 46 states” (panerabread.com). They have grown from twenty stores in 1993. Key Factors that drive the industry Panera Bread is in are economy, technology, and socially or society.
This paper has revealed the most powerful and weak spots of Trader Joe’s. Supermarket industry is currently alive and competition between firms are very contentious. Some markets choose to provide the lowest cost possible to their costumers and some of them choose to sell spatialized products to their customers. The SWOT analysis provided useful clues about the future of
The everyday low pricing strategy works best in a broader store positioning strategy and supported with advertising. Hi-Value doesn’t need to be the lowest priced supermarket in the area for the everyday low pricing strategy to work. Lowering pricing needs to be used by all in the area or else Hi-Value will confuse our store image and positioning. Hi-Value must look at recent consumer research to see how we are positioned and how this pricing will change our image. There is potential to reduce operating costs. Everyday low pricing can lower our operating costs in two different ways. It can reduce inventory and handling costs due to more steady and predictable demand. It can also reduce labor costs related to less frequent temporary price reductions.
In the case of Giant Consumer Products, Inc. (GCP), the background of this supermarket’s performance, specifically in the Frozen Foods Division (FFD), is reviewed and applied to promotional marketing decisions. Presented by Harvard Business School in 2012, Giant Consumer Products: The Sales Promotion Resource Allocation Decision provides a comprehensive overview of GCP’s overall financial stature, with insights into its FFD including industry and company context, promotional planning, execution, and allocation (Bharadwaj & Delurgio, 2012). In pursuit of further analysis, GCP’s case background can be reviewed and summarized by conducting a situational analysis, determining the core issues, evaluating alternative solutions, and providing concluding
Specifically, Ralph’s (similar stores are Vons and Albertson’s) and Whole Foods (similar stores are Gelson’s and Trader Joes) are two firms that utilize cost leadership and differentiation. On one hand, we have Ralph’s using cost differentiation by providing a broad range of merchandise at a decent price. On the other hand, we have Whole Foods that has implemented a differentiation strategy by marketing their merchandise as healthier (organic). The trade of for both companies is that they are attracting less consumers by just marketing to a specific crowed. For instance, if Whole Foods had lowered their price and still sold premium merchandise, soon Ralph’s would be in trouble.
Their idea is that convenience is what Bob’s was trying to sell in a price conscience market that was focused on saving money because of the economic down turn in 2008. (Parnell, 2014). In the article, “The Changing Face of Food Retailing” the article describes the economic change that is penetrating the country described as “The rapid spread of supercenters and deep-discount food retailers illustrates Porter’s threat of the entry of new competitors, after supermarkets had been the predominant food retail format for several decades. The growth of private-label products reflects both Porter’s risk of substitute goods and the power of product buyers. In terms of technology, the analysis of the point-of-sale (POS) data generated by checkout scanners and barcodes has helped shift bargaining power from the product suppliers to the increasingly-concentrated retailers” (Senauer & Seltzer, n.d.). In spite, of national trends, and world change economic variability is inevitable in the market place to no end retailers must be proactive and change with the times to
One area that I am surprised that was mentioned is brand loyalty. Although the resell and shipping industry is unknown to the normal everyday consumer, in the commercial world corporations like Dot foods in vital to the longevity of their business and future success. Therefore, I assume over the years, Dot Foods has gained traction and become known as a corporation who delivers economical products that meet all government regulations. Which with restaurants like Chipotle who lose business after a health scare, souring product for a reputable is critical.
The level of threat of substitutes is high, this means that Coles has a lot of indirect competitors such as farmers’ markets, specialist grocery stores and convenience stores. These indirect competitors posed a serious threat to Coles. If a farmers’ markets were to expand in offering more variety of products, they would be able to compete directly with supermarkets. Coles would lose out because of price variances of
High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver. Also impacting per capita coffee consumption, another industry driver.
Vertical integration is also one of the strategic objective linked to McDonald’s cost-leadership strategy. For example, McDonald’s owns facilities that produce standardized mixtures of ingredients. Also, cost minimization is a financial objective based on the cost leadership strategy. In addition, product innovation is related to McDonald’s broad differentiation generic strategy.
McDonald's has become an icon of American fast food. It is now internationally known, with thousands of restaurants in various countries around the world. In 1940, Dick and Mac McDonald opened McDonalds’s Bar-B-Q restaurant on Fourteenth and E streets in San Bernardino, California. It was a typical drive-in featuring a large menu and car hop service. After several years in business, Dick and Mac McDonald shut down their restaurant for three months for alteration. In December 1948, it reopened as a self-service drive-in restaurant. McDonald’s Restaurant offers a uniformed menu, including hamburgers and cheeseburgers, Big Mac, Filet-O-Fish, Chicken McNuggets, wraps, French Fries, salads, shakes, McFlurry desserts, sundaes,
This element of the marketing mix defines the approaches used to communicate with the customers. McDonald’s uses the following tactics in its promotional mix: