...Sidi Asia Ndioubnan Strategic Plan, Part II: SWOTT Analysis Date: January 10, 2012 Class: BUS/475 SWOTT analysis is an acronym that stands for: Strength, Weakness, Opportunities, Trends and Threats. This analysis gives a company the chance to examine the internal and external factors that can help the company reach an objective. SWOTT analysis is commonly used tool by managers of many different companies to develop a well thought of strategic plan. In this paper I will analyze eight different internal or external forces and trends that could affect Ladies First beauty salon. The information used will be used to create a SWOTT analysis table, which will be featured below. Lastly, the paper will identify the circumstances surrounding each issue, classifying the circumstances, attribute the importance of each classification and testing the accuracy of the importance for each classification. SWOTT Analysis of Ladies First Beauty Salon As stated the in introduction, a SWOTT analysis is a step that should not be over looked when creating or developing a strategic plan because it’s important in simplified the process. The SWOTT analysis where the company has its chance to look at the strengths, weaknesses, opportunities, threads and treads; that are needed to keep the business successful. These elements of the SWOTT deal with the internal as well as the external dwells of the company. The internal elements deal with things happening within the company and the external...
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...| | Have supermarkets become too big to the extent that they are damaging competition? Executive Summary Table of Contents 1. Introduction 3 2. Economic Structure 4 3. Non-Price Factors 7 4. Legal Framework and Political Structure 8 5 Conclusion 9 6 Recommendations 9 7 References 9 8 Appendices 9 1. Introduction 2.1 Purpose The purpose of the report is to decide whether supermarkets have become too big to the extent that they are damaging competition by explaining and analysing the changes in legal framework and economic and political structure that has enabled them to become dominant in UK grocery retailing. 2.2 Supermarkets background: The first supermarket opened in the UK after World War 2 (1948), which introduced the cheap agricultural food revolution. Today there are several different supermarkets and grocery stores all over the UK. In the supermarket industry the most dominating firms are Tesco with 30.4% of the market share, Asda with 16.6% of the market share, Sainsbury with 16.2% market share, and Morrisons with 11.2% market share. All these supermarkets opened their first self-service stores during 1950 – 1963. Joanna Blythman, SHOPPED The shocking power of Britain’s Supermarkets (2004: 4) states that ‘in 1950, supermarkets had only 20 per cent of the grocery market while small shops and traditional Co-ops had 80 per cent between them’. The average size of the Big 4 supermarkets has increased significantly in the past...
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...Hi-Value Supermarkets Major Issue/Problem: Should Hall Consolidated transition to the everyday low pricing strategy in the 3 Hi-Value Supermarkets in the Centralia, Missouri area? Alternative Courses of Action: Alternative One: Implement Everyday Low Pricing with a 5% reduction across ALL product lines Advantages * Prices become more competitive to a price conscientious market * Doesn’t exclude a product line * Not low enough to start a price war * Price is closer to Grand American and Missouri Mart (7% lower currently) * Reduce cost from lower inventory and handling costs * Reduce costs from labor expense from remarking prices Disadvantages * Could damage current image (although it is weak) of offering high-quality merchandise * Requires 20.08% increase in sales volume to break even * Lowers gross profit margin to 26.2% * Additional costs for advertising to promote new pricing concept Quantitative Implications: 5% Price Decrease on ALL Categories | Category | Gross Profit Margin | VC | Price | 5% Decrease | Percentage of Sales | Weight GPM (5%) | Grocery (w/ dairy) | 30% | 70% | $1.00 | 27.42% | 50% | 13.71% | Meat/Poultry/Seafood | 18% | 82% | $1.00 | 14.78% | 20% | 2.96% | Produce | 30% | 70% | $1.00 | 27.42% | 18% | 4.93% | Seasonal & General Merchandise | 33% | 67% | $1.00 | 30.57% | 7% | 2.14% | Deli | 50% | 50% | $1.00 | 48.47% | 5% | 2.42% | | | | | | 100% | 26.2% | Alternative Two:...
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... 2.1. Ryanair Warns Plunging Oil Price Will Hurt Profits–The Guardian Feb 02nd 2015 3 2.2 Aldi and Lidl set to win holiday season again as shoppers shy away from Asda, Tesco, Morrison and Sainsburys- The Guardian Dec 16th 2014. 5 3. Conclusion 6 4. References 8 1. Introduction This report aims to recognize key economic factors that are affecting three different firms and provides a clear link between the discipline of economy and real life examples. The first story focuses on the merge between BT Group plc and EE that could result in economies of scale and scope as finalisation of the purchase would create the UK's biggest fixed and mobile operator that offers a multiply services. Further benefits of merge give the company a possibility to eliminate rivals therefore the firm is becoming close to achieve a monopoly. The second story concentrates on the drop of oil price caused by increased supply against demand. The organisation involved is RyanAir which is budget airlines. Budget airlines are able to offer cheap fares by reducing their operation costs mainly by hedging fuel; however economic and political factors affected the forecasts of future fuel rate in disadvantage for the company. This company has hedged fuel at the £61 while in 2014 the oil price dropped to £33 per barrel which gives competitors a chance to purchase cheaper fuel and reduce their fares against RyanAir. The final story describes how major UK Supermarkets Tesco and Sainsbury are affected by...
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...investment horizon and plenty of patient capital – Id. There are few threats to Aldi or the limited assortment store. Aldi is immune to competition, even from WalMart Aldi 3 Aldi in Australia Ia. Aldi acts as a category killer in core grocery lines – Aldi is a limited assortment discount grocery store, a format characterized by a high turnover on a narrow range of grocery items in a small space – The main appeal of limited assortment stores is low prices – Packaged grocery accounts for almost 50% of a German Aldi store’s turnover and 50% of an American store’s SKU mix – In Germany, over 70% of German households shop at Aldi, mostly for basic staples Aldi 4 Aldi in Australia Aldi is a limited assortment discount grocery store… TYPES OF DISCOUNT FORMATS Format # of Items Key Points Examples Aldi, Netto, Lidl, Norma, Save-A-Lot Limited Assortment 600-1000 Tightly controlled selection Focus on packaged groceries Emphasis on low costs 10-20% cheaper Discount Supermarket 1000-3000 More flexible product selection Kwik-Save, Plus, More fresh, chilled and frozen Penny 5-10% cheaper Extended Range...
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...Company Logo Presented by: Jigar Mehta-21 Rahul Prakash-35 Pavan Singh-50 Omkar Borle-53 Contents 1 Industry Overview Company Overview Competitors Strategic Groups Core Competencies Resource Based View Activity Based View Five Forces Model & Value Net SWOT Analysis Adoption Of Strategies Financial analysis & Recommendation 2 2 3 4 5 6 7 8 9 10 11 Industry Overview U.K 11% of all VAT-registered businesses in the UK are retailers. 70% of UK retail is Organized and 30% is Unorganized. The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of September 20. Supermarkets dominate the UK food retail market, with 56.0% of sales. 3 Company overview Tesco¶s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the world next to Wal-Mart, Carrefour and is operating around 2,440 stores and employing over 4,00,000 people www.Tesco.com is recognized as the world¶s largest online grocer, with a customer base of little less than 1 million and more than 250,000 orders a week. Tesco¶s market share of UK retailing is 12.5%. 4 Company overview Tesco has moved into areas such as clothes, consumer electronics, consumer financial services, internet services, consumer telecoms and gas stations. Tesco now controls over 30% of the grocery...
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...1. Porter’s Five Forces Model in USA Supermarket Industry • The Threat of New Entrance (Low) In the USA supermarket industry, the threat of a new entrance is relatively low. This consideration is achieved by the advantages that already had by the incumbents. For example, Walmart that was considered as a leader in sales for supermarket in USA,[1] Walmart even already grasped the US market share in 1990 with 41%[2], Walmart had a market presence, buying power and breadth of inventory. Moreover, Walmart also spent large amount of capital investment for its IT division and distribution logistics. Walmarts had IT capability to check individual product sales. In consequences, Walmart is the only retailer that can provide real-time sales data for many suppliers. The market power that Walmarts have, make them very easy to bargain with the supplier, this situation makes it harder for the new entrance to compete with Walmarts. On the other hand, ALDI is considered as a discount grocery chain also has its advantage. ALDI’s unique operating model makes it almost impossible for competitors to match price and quality. Max Levitte, CEO cheapism.com, wrote that one day he visited a store in Ohio and compared ALDI to Kroger and Walmarts, so with the same items in various departments, ALDI was the cheaper for total item in shopping cart, with the gap is more than $13 with Walmarts and more than $21 with Kroger.[3] The bankruptcy case of Kmart in 2002 also strengthen...
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...britain ’s bruisin g banana wars Why ch threat eap bananas Policy en farmers’ report future s A Fairtrade Foundation Report February 2014 When I sell a box of bananas it’s a product with quality, with incredible taste, so it should be fair that you pay a fair price for it. Horatio Hernandez Coobafrio Co-operative, Magdalena, Colombia January 2014 contents 1 Introduction 4 2 6 Executive Summary Britain’s Bruising Banana Wars 16 16 20 21 4 The banana value chain 4.1 The UK banana market 4.2 The retail price of bananas in Britain 4.3 UK banana imports 2002 – 2013 4.4 Changes in banana supply chain operations 4.5 The impact of supermarket price wars on producers 4.6 Producer prices vs costs of sustainable production 22 22 23 5 The market environment for bananas 5.1 Evolution of the global banana trade 5.2 Consolidation of retailer power and UK price wars 5.3 The impact of competition law on banana prices 38 6 Fairtrade’s alternative approach 6.1 General background to the Fairtrade system 6.2 Fairtrade bananas – scope and scale 6.3 airtrade: the benefits and F constraints for farmers and workers 2 3 About this report 3.1 Fairtrade’s involvement in bananas 3.2 Research objectives and approach 3.3 Methodological note 7 Achieving a sustainable banana industry 7.1 inclusive market An ...
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...relevant macro environmental factors that will affect Giants discussed below. ECONOMIC FACTORS Businesses analyses economic factors and its determinants as they play a vital role in determining where an economy might move. These economic factors are not limited to economic phenomena such as tax policy, inflation and many more (Ho 2014). In February, Reserve Bank of Australia (2016) highlighted the economic growth in 2015 is a bit low on average compared to previous years. However, the Supermarket and the Grocery Market Revenue is projected to increase by 2.5% in 2015-16 (IBIS 2016) and 82% of the supermarket expected to get more earning (Delloite 2016). Since these factors affect Giant’s success, Giant should study the factors and draw strategic plans accordingly for a successful business. Firstly, since there is a fierce competition in Australian supermarket and grocery Industry, a success of a new firm will be highly impacted, as market share will be shared among competitors whilst prices dropped as, more suppliers supplying closely substitute products. For instance, Aldi entered the industry and shared the profit and market share with competitors such as Coles and Woolworths. The existence of Aldi decreases the market share for Coles and Woolworths in 2015 to 39.5% and...
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...James Ellis, the senior vice president of Hall Consolidated and president of Hi-Value supermarkets, must decide whether to pursue an everyday low pricing (EDLP) strategy at its three Centralia MO locations. After much analysis, I believe that my recommendation would be for Superior stores (Hi-Value) to most definitely adopt this new method. First let’s look into some details about Hi-Value, and their competition: Product: The stores’ products are divided into 5 categories: 1) grocery (including diary); 2) fresh meat/poultry/seafood; 3) produce; 4) seasonal and general merchandise; and 5) bakery and deli. Price: more of a high-end branding strategy. Hi-Value everyday (non-promotional) prices are 10% higher than Harrison and 7 percent higher than Grand American and Missouri Mart. Higher prices have become a competitive concern due to their declining market share in Centralia. The negative growth rate, based on 1998 to 2005 figures from Figure 2, is -0.53%. Place: Three locations (North Fairview, West Main and South Prospect) give a competitive advantage. The VP of Operations even said “we offer greater convenience of shopping with our three stores and that is worth something (implying higher prices)”. Exhibit 6 shows that Hi-Value is ranked “most convenient” by 35%, Promotion: The 2005 advertising budget was 0.89% of sales revenue, or $127,500. Competitors spent an 1% of their sales revenue. If EDLP is adopted, Hi-Value should increase the advertising budget. One...
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...An Analysis of the Effects of the Big Four Super Markets on the Local Producers, Retailers, Community and Economy of the U.K Introduction to the ‘Big Four’: Grocery shopping in the United Kingdom is dominated by four companies that have opened up retail outlets there. All of these companies are British. They all have a huge market share and have thus earned the title of ‘The Big Four.’ Following is a small introduction of each of the four brands along with their market share both inside and outside the United Kingdom. Tesco is the multinational company that offers grocery and general merchandise. It is a retail business that has its headquarters in the United Kingdom. Functioning from Chestnut, its market share has just recently dipped below thirty percent in UK, even though it still makes it the leading retail business in the United Kingdom. It had for the past seven years maintained its market share above the figure of thirty percent. However, it is not confined to only the U.K, but also has a huge market share in Thailand, Malaysia and Ireland. It has opened up many outlets over continents including Asia, Europe and North America. Morrison’s is a chain of outlets in the United Kingdom and it is the fourth largest retail business in the United Kingdom. However, it is the smallest if the Big Four companies, having a market share of around 16.7 percent comprising of U.K sales to consumers. It has its head quarters in Bradford in England. Asda Stores Ltd. ranks at the...
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...Case; Superior Supermarkets “Everyday Low Pricing” Company background; * Superior supermarkets is a division of Hall Consolidated, a privately owned wholesale and retail food distributor, Hall formed in 1959 and distributed food and related products to 150 company-owned supermarket units, operating under three supermarkets chain names through 12 wholesale distribution centers in US, its sales in 2002 were 2.3 billion *The three Superior supermarkets are located in Centralia-Missouri, Everyday Low Price Policy; A retailer charges a constant lower everyday price for merchandise with few, if any, price discounts, this practice differs from a “Hi-Lo” price policy, whereby a retailer charges higher prices on an everyday basis, but then runs frequent promotions. The Goal of the Superior Markets new approach “Everyday low price”; 1-Superior’s prices were higher than the competition 2-Superior could lose market share due to the price differential and accordingly losing its second position “Market challenger”. Everyday Low Pricing Implementation Considerations; *All of the Hall executives acknowledged that Superior Supermarkets were rightly perceived by shoppers as having the highest prices *Whether or not to adopt this pricing strategy across-the board for all products or just certain categories? *The pricing itself and how much it should be lower? As the studies showed that their market-basket prices were always 7-10% higher than other competitors ...
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...one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers and supermarket chains over the years. The wide range and sheer number of stores has been a significant factor in driving sales growth for the company. Tesco has diversified from traditional food retail, selling a wide range of products including clothing, electrical goods, homewares, fuel and much more. Non-food products tend to have much bigger profit margins than traditional...
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...What’s wrong with Supermarkets www.corporatewatch.org.uk Strip lights, endless queues of strangers and shelves of packets, fake smiles from bored checkout assistants isn't there a better way to get our food? Supermarkets wield immense power over the way we grow, buy and eat our food. They are shaping our environment, our health and the way we interact socially. These changes have gone unchallenged because consumers have been sucked into superstore lifestyles, persuaded that the opportunity to select from six different brands of cut-price oven chips at three in the morning represents choice and value. What’s Wrong With SUPERMARKETS But the tide may be turning. Unease at the true cost of supermarket food is spreading among consumers, who are beginning to join forces with the farmers and workers who have always known that supermarket 'choice' is a bad deal. This booklet aims to help campaigners get to grips with the reality of supermarket domination and argues why we must start looking for alternatives. Researched and written by Lucy Michaels and the Agriculture Project at Corporate Watch What’s wrong with Supermarkets www.corporatewatch.org.uk What's Wrong with Supermarkets? Overview: Supermarkets sweep up 2 3 10 11 The supermarkets we know today started in Britain with the Cooperative Movement in the 19th century. This was a group of independent local retailers controlled by its consumer members...
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...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 market and, at the opposite end to M & S and Waitrose which compete on quality. Chapter 1: Introduction & Methodology Competition is an integral part of the market economy. This dissertation will attempt to examine the nature of competition as well as evaluate the competitive strategies undertaken, within the UK supermarket industry....
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