Wal-Mart is the world’s largest retailer with over 8400 stores worldwide employing 2 million people. It serves more than 200 million people with global sales exceeding £291 billion. (Basker, 2007) Wal-Mart is globally organised so that it can respond quickly to changing markets and cost conditions in its international locations. The UK is one of these locations. This essay will firstly explore features that are of benefit before considering features that are of detriment to Wal-Mart and the UK in the aftermath of its take-over of Asda.…
Food fight: Fierce price competition has benefited consumers but eaten into profit IBISWorld Industry Report G4111 Supermarkets and Grocery Stores in Australia June 2014 Brooke Tonkin 2 About this Industry 14 Demand Determinants 29 Operating Conditions 2 Industry Definition 15 Major Markets 29 Capital Intensity 2 Main Activities 16 International Trade 30 Technology & Systems 2 Similar Industries 17 Business Locations 30 Revenue Volatility 2 Additional Resources 31 Regulation & Policy 19 Competitive Landscape 3 Industry at a Glance 32 Industry Assistance 19 Market Share Concentration 19 Key Success Factors 34 Key Statistics 4 Industry Performance 19 Cost Structure Benchmarks 34 Industry Data 4 Executive Summary 21 Basis of Competition 34 Annual Change 4 Key External Drivers 22 Barriers to Entry 34 Key Ratios 5 Current Performance 22 Industry Globalisation 8 Industry Outlook 10 Industry Life Cycle 35 Jargon & Glossary 24 Major Companies 24 Woolworths Ltd 12 Products & Markets 25 Wesfarmers Limited 12 Supply Chain 26 ALDI Stores Supermarkets Pty Ltd 12 Products & Services 26 Metcash Limited www.ibisworld.com.au | (03) 9655 3881 | info@ibisworld.com WWW.IBISWORLD.COM.AU Supermarkets and Grocery Stores in Australia June 2014 About this Industry Industry Definition Supermarkets and grocery stores retail a range of groceries and food lines, including fruit and vegetables, bread, cigarettes, canned goods, toiletries, dairy Main Activities The primary activities of this industry are goods, delicatessen items and cleaning goods.…
Coles recognises the importance of building Australian businesses that can meet the challenge of global competition. As a retailer employing 100,000 team members, Coles has set itself the ambition of providing a customer experience in our stores that is world-class in quality, service and value. In recent years Coles has improved its operating performance and competitiveness, leading to lower food and grocery prices for Australian consumers. But Coles acknowledges it has to make further improvements to achieve world’s best practice. They are continuously improving the way they operate and are working smarter to ensure their stores are easy to operate and run smoothly so their team members are available to serve the customers. There are always…
1) Smucker’s corporate strategy is to build a portfolio of brands that are sold in the center of every grocery store. They plan to execute this strategy through the organic growth of their products, the development and introduction of new products, and by acquiring brands. The majority of Smucker’s brands share two strategy elements. First, they are ‘middle of the store’ processed foods. Second, they are often high margin products. Another common element among the brands they acquired is the fact that the brands were all industry leading name brands before they were acquired. Such acquisitions were beneficial to the firm not only by diversifying their product line-up, but it gave the firm more leverage when dealing with chain retailers. The type of products they diversified into made sense for the firm as it did not go against their corporate strategy. Any brands that went against the strategy were divested.…
Bob’s Supermarket was founded in the early 1960’s. Bob’s, stored cared a lot about the customers and the services that was rendered to them. The former operators of the store owned it for more than 19 years and seemed to have lost interest in running the store. After the store was purchased, there was an increase of sales and profits that by more than forty percent. Bobs Supermarket offered its customers high grade-A quality products (Parnell, 2014). Some of the key facts and critical issues for Bob’s was the competition. Their main competitor was Walmart. This caused great concern for the company and other small business like Bob’s Supermarket. Another critical issue for Bob’s Supermarket was the recession that impacted Bob’s. Many…
Jim Sinegal and Jeff Brotman in Seattle Washington founded Costco Wholesale in 1993. Costco merged with Price Club, and doubled their market share in the wholesale industry. They became an immediate leader in the industry.…
1. What is Costcoʼs business model? Is the companyʼs business model appealing? Why or why not.…
As a company with millions of customer throughout 2, 900 stores, The Coles Group certainly be one of the top companies in Australia and New Zealand. However, it has lost its market share to the more enhanced and focused Woolworths company. The loyalty program battleground between two companies seemed more advantages over the Woolworths side since it gained 40% of market share with less on 50% advertising spending. There are some possible problems the Coles Group has to consider while managing its broad relationship marketing programs. First, their customer may find it very difficult to understand and remember all the complexity of saving points promotion. Second, it…
Wm Morrison was founded in 1899 by William Morrison, an egg and butter merchant. Now, it is one of the largest supermarket chains in the UK, offering a vide range of goods including other brands and own label products. The company is headquartered in Bradford, the UK and employs about 124,530 people. And it has assuranced to create about 5000 jobs this year. It operates over 382 stores and 287 petrol stations all over UK. With such a growth Morrison became a member of the "Big Four" grocery retailers.…
Costco is a membership warehouse pioneered by discount merchandising sage Sol Price. Jim Sinegal left the Price and started Costco with Jeff Brotman in 1983. After opening the first Costco store within approximately 18 months the pair had opened nine stores in five states. In December, 1985, Costco became a public and raising additional capital for expansion.…
Aldi was identified as a competitive force by the ACCC in 2008 and it has continued to grow. But its market share is still small. Costco has expanded, but is also a minor player. According to the ACCC, Metcash supplied stores had little ability to compete on price with Coles and Woolworths in 2008. This does not appear to have changed. And innovative competitors, like the specialist organic supermarkets and ‘high end’ gourmet outlets that have opened in the US, are almost non-existent in Australia.…
The two major grocery chains – Woolworths and Coles – dominate with almost 70% market share of an industry valued at A$80+ billion. Over the past 5 years the sector has been witness of some significant developments.…
This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.…
Morrisons Plc annual report and financial statement (2011) stated that Morrisons is one of the fourth largest food retailers by sales with an annual turnover in excess of £16 billion and account for 12.8% in the grocery industry (See appendix 1). However, the UK supermarket industry is intense competition so it required more new and effective tools to compete with rivals (Urbonavičius and Ivanauskas, 2005). Hence, for retaining and developing, Morrisons is not only needed to have excellent strategic operation management but also diversified itself in to the new market. This essay will analyze Morrisons’s operations management, its value chain and other aspects relate to quality which leads Morrisons difference from other supermarket.…
Woolworths’ vision is to provide quality products and services to its customers all the time through price strategies, fresh food strategies and human resource strategies. Woolworth’s main strategies are to increase efficiency and be cost effective. To achieve this Woolworths has integrated and implemented several strategies which include every-day low price strategy and; Project Refresh strategy. The every-day low prices strategy addresses this, and attempts to offer customers everyday lower prices through price reductions on all products. Project Refresh is a strategy designed to drive the cost of doing business down. Organisational structure, staff leadership and stakeholders all play an important role in implementing and integrating strategies. Woolworths’ has experienced great success and should continue along the same path through innovative, tactful and profitable strategies. Woolworths fulfilment of its strategies it due to it core competencies and its ability to reposition itself on the market and efforts to differentiate itself. Woolworths are now recording their first billion-dollar profit. Due to implemented strategies profit is up 24.3 per cent. “Earnings before interest and tax topped $1.7 billion - an increase of 32.3 per cent” (ABC2006)…