Firm History:As stated in the case study, “Loblaw Grocetariaswas founded in 1919 by Theodore Pringle Loblaw J, Milton Crok. In 1947, George Weston, acquired a small stake in the company. Eventually, Loblaw companies limited became a part of George Weston limited, Canadian based company. Now it is controlled by third generation of Weston family. It operates in two distinct segments: food processing and food distribution”. Though Loblaw is into mergers and acquisitions, it has an equal focus on organic growth. It operates in four regions: Ontario, Quebec, Atlantic and Western regions. In 2002, Loblaw became Canada’s largest food distributor with sales of 23.1 billion dollars in 2002 and 122,300 employees. “Loblaw 's operates a private label program …show more content…
This makes it susceptible to changes in regulations in either industry. Furthermore, employees of Loblaw are part of UFCW. So any changes in minimum wage policy by UFCW will deeply affect Loblaw’s. Economic: Though Canadian retail market has become saturated, Loblaw’s net income and EPS have been growing at a steady rate. Social: Changing consumer preferences and increase in disposable income have disrupted the retail industry. Additionally, demand for Socio-Cultural: Due increasing double income families, there is an increase in demand for ready-to-heat and ready-to-eat foods. Technology: Over the last few years, technology has advanced in leaps and bounds. Big retailers such as Wal-Mart use technology to drive down their cost and to improve operational efficiency. If Loblaw wants to compete with Wal-Mart, it should start upgrading its IT infrastructure. Additionally, employ tools such as ECCnet to increase …show more content…
Rivalry among competitors: High: Grocery chains have been growing at a steady rate in the past few years and so has been the competition. Loblaw faces competition from 4 leading chains: Sobey’s(14.7%), Metro(7%), A&P(5.9%) and Canada Safeway(7.4%). In addition to the local retailers, Loblaw’s also faces competition from global retail chains such as Walmart, Costco etc. Internal Analysis: SWOT: Strengths: 1.Largest food retailer in Canada. 2. Strong reputation and a recognizable brand 3. Good quality products at a low price 4. Value added in store services. Ex. Financial services. 5. Good compensation system for employees. 6. Owned stores at prime locations. 6. Has different type of stores which service different type of customers 7. Upgraded stores every 5 years rather than 7 Weakness: 1.Weak IT infrastructure 2. Operates only in Canada 3.Has too many banners under its brand name Opportunities: 1.Food industry has been growing at a constant rate. 2. The increase in double income families has increased the amount of disposable income people have. 3. ERP has made integration of IT with suppliers easy. 4. ECC net can help Loblaw to increase it’s savings. 5. Growing population and growing number of people with internet connectivity. 6. Growth of specialty chains due to inflow of immigrants. 7. Standardization of
Introduction Blake Goodwin is the CEO of Goodwin Wealth Management. He was deciding to hire a consultant to make an assessment of his situation. Three large companies had expressed interest to acquire Goodwin Wealth Management. In the fall 2007, Ice Financial Income Fund, First Canadian Band, and Brawn Financial Corporation were the potential suitors and they had made offers to acquire the company. Blake Goodwin had to decide whether to sell the company and if he sold it, which buyer was the best one.
Competitive Advantage & Strategy Real Canadian Superstore definitely uses growth as their work strategy. They constantly try to improve the company and add things so that they can receive more revenue. They add their own brands, such as PC, and they add departments such as Joe Fresh. They also use co-operative strategy because some store are paired up with dry cleaners to help improve both companies.
In order to analyse what extent Tesco U.K’s performance is attributa-ble towards industry characteristics, Porter’s five forces are broken up into competition, potential of new entrants, power of suppliers, power of customers and the threat of sub-stitute products. Below is an image of Porters 5-forces in relation to the U.K supermarket industry. 1. Rivalry amongst competitors The intensive rivalry in the U.K’s grocery sector is remarkably high.
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.
Metro’s profit margin is also about double the percentage of Loblaws which demonstrates that Metro is better at taking revenue and turning it into profit than Loblaws. This company’s net earnings had a large increase of 12.9% from the previous year. The profit margin is important for shareholders because it shows them that the company is efficient and profitable. In addition, food deflation should ease in the next quarters so this will help grocery retailers, like Metro, to increase their profits and
Trader Joe’s is a small, American grocery store chain that would benefit from expanding internationally into the Canadian market. As we have seen in recent months, Target Corp. just pulled all of their locations out of Canada, but this is largely due to the fact that their international strategy did not fit well with the Canadian market. This paper will outline why Trader Joe’s is a good retailer for international expansion, why Canada mixes well with their business strategy as a country to expand to, the strategic plan Trader Joes should engage in during expansion, and five strategic recommendations that lead to Trader Joe’s advantages in
Trader Joe’s prefers to grow organically/internally, they do this by continuing to open new stores in new locations as well as trying to grow their sales. With this method, the firm grows at a slower pace, however growing organically allows you to increase your market share, allows for a more realistic growth rate for the business, and avoids any risks associated with mergers and
Wal-Mart has been experimenting in smaller places rather than usual big cities. Wal-Mart proclaimed that they are planning to open %40 of their store openings over next years with small store formats. The SWOT analysis indicates us relevant information about the current threats of Trader Joe’s. The threat analysis indicates that there is huge rivalry in the market, having no technology and substitute companies creates big threat. The substitute threat and brand name items are concern for Trader Joe’s and competitive advantage.
Their strengths are good food, reasonable price, high customer traffic, clean atmosphere, family run and operated. However, their weaknesses were; lack of management expertise, lack of accountability, inefficient human resources management skills, lack of innovation and therefore missed growth opportunity, and a hostile working
• Rivals face high exit barriers Very High Potential Entrant Pressure • High entry barriers • Strong product differentiation • Menus change constantly with
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.
LEADERSHIP & MANAGEMENT WEBINNOVATE 2.1 BAREBURGER SWOT & PESTLE ANALYSES ASSIGNMENT Submitted by: (The7Corgis Group) John Hargaden David Gardiner Hassan Sougrati TABLE OF CONTENTS Company Description Key Facts SWOT Analysis Strengths Weaknesses Opportunities Threats PESTLE Analysis Political Economic Social Technological Legal Environmental “You can’t grow if you don’t go out of your comfort zone” Euripides Pelekanos – Bareburger Group LLC Co-Founder & CEO 1. COMPANY DESCRIPTION
Higher Quality of Service or Product 3. Monetary Savings 4. Better Employee Retention Rates 5. Pleasant Work Environment Maslow`s Hierarchy
Synopsis Consistent taste and “word of mouth” is what has taken Student Biryani, a brand of Café Student, from a small roadside vendor to one of Pakistan’s fastest growing franchise networks. The Karachi-based food outlet – after attracting notable traffic in Dubai – now wants to test North American and European markets; extend its Gulf network through global franchising. STUDENT BIYRYANI is a famous national brand making waves in the ethnic food markets in Pakistan since last four decades. Founded by Haji Muhammad Ali in 1969, Student Biryani was prepared only in one tumbler (Deig) catering to around 40 servings.