...Sainsburys.co.uk) In the current global recession , UK’s economy is severely affected and resulting inflation means that the survival of business has become a prominent challenge. The recent scenario in retail industry portrays a clearer image as companies like –comet, J-harris & Sons, JJb sports, Barrats etc had to close down their business’s. However even in these tough environment Sainsbury’s operates over 1000 stores and employs around 150000 people. The Company announced increase in profit and plan to open new stores in upcoming year. It is easy to understand that profitability lies on the underlying strategy of the organisation. In the case, the strategy formulation the strategy formulation can be captured by the framework that is provided by Michael Porter (Professor in Harvard University). The framework is known as Porters 5 forces which shapes the main strategy and gives outlook of any Company such as Sainsbury’s current business situation. This tool analysis includes 5 steps which determine the competitive power in a business situation which are: 1) Supplier power: - Sainsbury’s plc has numerous suppliers for different types of products. The supplier power is low as large group of suppliers are present for e.g. Sainsbury’s purchases milk from Wensleydale firm and holds the power to negotiate the price as there are many firms available to the company to purchase milk. 2) Buyer power:- Consumer power of Sainsburys Plc is very high as homogeneous products are easily...
Words: 477 - Pages: 2
...within the UK Food Retail Industry Abstract This dissertation set out to explore the nature of competition within the UK Food Retail Industry as well as to evaluate the competitive strategies undertaken by firms in the market. This task has been undertaken through a critical analysis of a range of literature focussed on establishing the current state of play in the UK supermarket industry, examining general theory on competition and competitive strategy, as well as a review of literature that specifically addresses competition between supermarkets in the UK. Looking first at the nature of competition in the UK food retail industry, it was clear from the literature review that while the industry has many characteristics of an oligopoly as it is dominated by a small number of major firms, it is undoubtedly highly competitive. The evaluation of the competitive strategies undertaken by firms in the industry showed that between the leading firms in the market that Tesco had the best balance between price and customer perceived value but there was clear evidence to suggest that the other leading firms were positioning themselves around Tesco in order to reduce its apparent competitive advantages. While the analysis showed similar competitive strategies for the big four, it revealed different strategies being adopted by other firms in the industry who look to operate in niche markets within the food retail industry, such as Lidl and Aldi, who compete almost entirely on price to a specific...
Words: 12207 - Pages: 49
...| | A "Low cost “ Supermarket | Claire David, P113979 23/01/2012 | Table of Contents Executive summary 3 Introduction 4 Business level strategy 4 Competitive advantage 5 Competitive strategy 6 Strategy clock 7 Hybrid strategy 8 Porters five forces 10 Advantages to using a Hybrid strategy 11 Threat of new entrants: 11 Bargaining power of suppliers: 11 Bargaining power of buyer: 11 Disadvantages to using a Hybrid strategy 12 Threat of substitutes: 12 Threat of rivalry with competitors: 12 Difficulty in sustaining: 12 Conclusion 13 Recommendations 14 Cost reduction that don’t affect quality 14 Deter from price wars 14 Differentiate 14 References 15 Executive summary This report aims to discuss the Hybrid strategy utilised by Asda, this report will be based on the following objectives: * Identify the strategy employed by ASDA in order to achieve competitive advantage * Critically evaluate the strategy identified * Provide recommendations for continued success and sustainability A collection of secondary information and data was gathered in order to obtain appropriate and information. Asda are a subsidiary of Wal-Mart, therefore it is assumed that the strategies used by Wal-Mart are also used by Asda in the same way. Introduction Asda are a well known organisation which started to operate in the 1920’s In June 1999, now a successful company once more, Asda was bought by Wal-Mart Stores Inc. and became...
Words: 2781 - Pages: 12
...3H Strategy & International Business 2001-2002 Session 8 – Positioning & RBAs compared A. INTRODUCTION TO SESSION The past two Sessions have outlined a series of models and frameworks that provide insights into the external environment and the strategic capabilities possessed by organisations. Many of these models and frameworks have developed as a consequence of a twenty-year debate over the way in which organisations seek to develop sustainable competitive advantage. In broad terms, two distinct approaches have emerged from the debate about this central issue within strategy content: the positioning approach and the resource-based approach (or more accurately, approaches). Much of the debate has concentrated upon two key questions: • Is competitive advantage achieved by concentrating on either low cost or differentiation or should a strategy seek to exploit both low cost and differentiation? • Does an organisation develop strategy to respond to or shape the environment in which it exists – is strategy outside-in or inside-out? As the primary purpose of the tools of strategic analysis is to help organisations to develop and implement successful strategies, then an understanding of the underlying context in which these models and frameworks can be applied is an important requirement. By exploring the development of these competing approaches to competitive advantage and the debate between them, this Session sets out to provide this contextual understanding...
Words: 7497 - Pages: 30
...The Strategic Evaluation of Lidl’s within the UK Market. Submission Date: 26 January 2014 Contents Introduction 3 1. Analysis of the competition faced by Lidl within the UK food retail industry 4 2. The Strategic position of Lidl 5 2.1 Porter’s Generic Strategies 5 2.2 Bowman’s Strategic Clock 6 3. An analysis of the external business environment and how it affects Lidl 7 3.1 PEST Analysis 7 3.1.1 Political 8 3.1.2 Economic 8 3.1.3 Social 8 3.1.4 Technological 8 3.2 Porter’s Five forces Model 9 3.2.1 Threat of New Entrants 10 3.2.2 Threat of Substitutes 10 3.2.3 Bargaining Power of Suppliers 10 3.2.4 Bargaining Power of Buyers 10 3.2.5 Competitive Rivalry within the Industry 10 4. How Lidl adds value to its strategic position 11 5. The sustainability of Lidl’s strategic position 13 6. Conclusion 13 7. Bibliography 14 Introduction The purpose of this report is to carry out a strategic evaluation of the hard discount food retailer Lidl. It will cover the following key items • An analysis of the competition within the food retail industry and the strategic position of Lidl; • An analysis of the external business environment and how it affects Lidl; • An analysis of how Lidl adds value to its strategic position; This will allow for a discussion of how sustainable Lidl’s strategic position is and conclude where Lidl is likely to progress within the UK grocery sector. Research from on-line literature, books and journals...
Words: 3567 - Pages: 15
...Design/methodology/approach – This paper analyzes the concepts of strategic positioning and sustainable competitive advantage and their interrelation. The qualitative study of three beverage producers is conducted. Cases are analyzed based on the theoretical models discussed in the first part of the paper. Findings - This paper provides comparison of positioning strategies and SCA of three international beverage producers. The theoretical framework on determinants of these concepts was developed and applied for case study. The concepts of SCA and SP are interchanging, but from the case study it was not possible to conclude whether one leads to another. There is no single theory found which would be universal in explaining the success of the brands. Companies are complex structures and their success depends on many different elements which should be analyzed in combination. Research limitations/implications – The findings are based solely on the case analysis of three unique beverage companies. To generalize conclusions the research of other companies in food industry on possession of SCA and their positioning strategies is needed. Not all firsthand information was possible to get from all companies. Therefore it cannot be guaranteed that factors beyond the scope of this study did not have an influence. Practical implications – The BIONADE and Supermalt brands represents an interesting cases for companies aiming to develop strong premium brands with a limited marketing budget for...
Words: 22733 - Pages: 91
...|Professional Post Graduate Diploma in Marketing | | | |Chartered Institute of Marketing | | | | | | | |Candidate No: 13184461 | | | |Center Name: Management Development Centre (MDC) | | | | | |Subject: Emerging Themes | | | | | |Word Count for Discussion Paper: | | | |Task One: 555 ...
Words: 4773 - Pages: 20
...gerry JoHnson KeVan sCHoles rICHard WHIttIngton Fundamentals oF strategy ACCESS CODE INSIDE unlock valuable online learning resources Once opened this pack cannot be returned for a refund Welcome to FUNDAMENTALS OF STRATEGY Strategy is a fascinating subject. It’s about the overall direction of all kinds of organisations, from multinationals to entrepreneurial start-ups, from charities to government agencies, and many more. Strategy raises the big questions about these organisations – how they grow, how they innovate and how they change. As a manager of today or of tomorrow, you will be involved in influencing, implementing or communicating these strategies. Our aim in writing Fundamentals of Strategy is to give you a clear understanding of the fundamental issues and techniques of strategy, and to help you get a great final result in your course. Here’s how you might make the most of the text: ● Focus your time and attention on the fundamental areas of strategy in just 10 carefully selected chapters. Read the illustrations and the case examples to clarify your understanding of how the concepts of strategy translate into an easily recognisable, real-world context. Follow up on the recommended readings at the end of each chapter. They’re specially selected as accessible and valuable sources that will enhance your learning and give you an extra edge in your course work. KEY CONCEPT AUDIO SUMMARY ● ● Also, look out for the Key Concepts and Audio Summary icons...
Words: 129967 - Pages: 520
...improvement in cost efficiency as a strategic ➔ Analyse how strategic capabilities might provide sustainable competitive advantage on the basis of their value, rarity, inimitability and nonsubstitutability. ➔ Diagnose strategic capability by means of value chain analysis, activity mapping, benchmarking and SWOT analysis. ➔ Consider how managers can develop strategic capabilities of organisations. Photo: Glyn Kirk/Action Plus Sports Images capability. ECS8_C03.qxd 94 10/15/07 CHAPTER 3 3.1 14:23 Page 94 STRATEGIC CAPABILITY INTRODUCTION Chapter 2 outlined how the external environment of an organisation can create both strategic opportunities and threats. However, Tesco, Sainsbury’s and Asda all compete in the same environment, yet Tesco is a superior performer. It is not the environment that distinguishes between them but their internal strategic capabilities. The importance of strategic capability is the focus of this chapter. There are three key concepts that underpin the discussion. The first is that organisations are not identical, but have different capabilities; they are ‘heterogeneous’ in this respect. The second is that it can be difficult for one organisation to obtain or copy the capabilities of another. For example, Sainsbury’s cannot readily obtain the whole of Tesco’s retail sites, its management or its experience. The third arises from these: if an organisation is to achieve competitive advantage, it will do so on the...
Words: 18530 - Pages: 75
...SAGE India website gets a makeover! Global Products Enhanced Succinct Intuitive THE Improved Interactive Smart Layout User-friendly Easy Eye-catching LEADING WORld’s LEADING Independent Professional Stay tuned in to upcoming Events and Conferences Search Navigation Feature-rich Get to know our Authors and Editors Why Publish with SAGE ? World’s LEADING Publisher and home and editors Societies authors Professional Academic LEADING Publisher Natural World’s Societies THE and LEADING Publisher Natural authors Societies Independent home editors THE Professional Natural Societies Independent authors Societies and Societies editors THE LEADING home editors Natural editors Professional Independent Academic and authors Academic Independent Publisher Academic Societies and authors Academic THE World’s THE editors Academic THE Natural LEADING THE Natural LEADING home Natural authors Natural editors authors home World’s authors THE editors authors LEADING Publisher World’s LEADING authors World’s Natural Academic editors World’s home Natural and Independent authors World’s Publisher authors World’s home Natural home LEADING Academic Academic LEADING editors Natural and Publisher editors World’s authors home Academic Professional authors Independent home LEADING Academic World’s and authors home and Academic Professionalauthors World’s editors THE LEADING Publisher authors Independent home editors Natural...
Words: 63606 - Pages: 255
...Marketing Channel Strategy This page intentionally left blank Eighth Edition Marketing Channel Strategy Robert W. Palmatier University of Washington’s Foster School of Business Louis W. Stern Northwestern University’s Kellogg School of Management Adel I. El-Ansary University of North Florida’s Coggin College of Business Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Acquisitions Editor: Mark Gaffney Program Manager Team Lead: Ashley Santora Program Manager: Jennifer M. Collins Director of Marketing: Maggie Moylen Executive Marketing Manager: Anne Fahlgren Project Manager Team Lead: Judy Leale Project Manager: Thomas Benfatti Operations Specialist: Nancy Maneri Cover Designer: Suzanne Behnke Creative Director: Jayne Conte Digital Production Project Manager: Lisa Rinaldi Full Service Vendor: Integra Software Services Pvt. Ltd. Full Service Project Manager: Anandakrishnan Natarajan/Integra Software Services Printer/Binder: Courier/Westford Cover Printer: Lehigh-Phoenix Text Font: 10/12, ITC Garamond Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text (or on page xix). Copyright © 2015 Pearson Education, Inc., publishing as Prentice...
Words: 236095 - Pages: 945
...cover cover next page > Cover Business, Management and Finance Small Business; Entrepreneurship title author publisher isbn10 | asin print isbn13 ebook isbn13 language subject publication date lcc ddc subject : : : : : : : Entrepreneurship and Small Business Burns, Paul. 0333914732 9780333914731 9781403917102 : : : : cover next page > file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%.../0333914732__gigle.ws/0333914732/files/cover.html [06.10.2009 1:01:58] page_i < previous page page_i next page > page_i next page > Page i Entrepreneurship and Small Business < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%...0333914732__gigle.ws/0333914732/files/page_i.html [06.10.2009 1:02:00] page_ii < previous page page_ii next page > page_ii next page > Page ii < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%2...0333914732__gigle.ws/0333914732/files/page_ii.html [06.10.2009 1:02:00] page_iii < previous page page_iii next page > page_iii next page > Page iii Entrepreneurship and Small Business Paul Burns < previous page file:///Z|/_==%CF%CE%C8%D1%CA==/Entrepreneurship%2...333914732__gigle.ws/0333914732/files/page_iii.html [06.10.2009 1:02:00] page_iv < previous page page_iv next page > Page iv © Paul Burns 2001 All rights reserved. No reproduction, copy or transmission of this publication may be...
Words: 182024 - Pages: 729
...ten new chapters that provide a comprehensive review of performance measurement from the perspectives of accounting, marketing, operations, public services and supply chain management. In addition to these functional analyses the book explores performance measurement frameworks and methodologies, practicalities and challenges, and enduring questions and issues. Edited by one of the world’s leading experts on performance measurement and management, Business Performance Measurement will be of interest to graduate students, managers and researchers who wish to understand more about the latest developments in this rapidly changing field. Andy Neely is Deputy Director of the ESRC/EPSRC AIM Research initiative, Professor of Operations Strategy and Performance at Cranfield School of Management, and Visiting Professor of Operations Management at London Business School. Business Performance Measurement Unifying theories and integrating practice Second edition Edited by Andy Neely CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521855112 © Cambridge University Press 2002, 2007 This publication is in copyright. Subject to statutory exception and to the provision of relevant collective...
Words: 191452 - Pages: 766
