Case Study Of Loblaw

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 Why has Loblaw’s strategy been successful? Loblaw’s success can be attributed to its good understanding of the Canadian shoppers and the Canadian grocery market. Loblaw has a time-tested strategy which includes an efficient operations, an excellent customer loyalty programs, a popular private label brands, and a large-scale purchasing efficiencies. Additionally Loblaw offers competitive wages and benefits. The company has a presence in virtually all Canadian provinces with a tailored value chain that helps them achieve high revenue and standards. 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…show more content…
What the company could do, is to protect and increase its dominance in the Canadian grocery market. Loblaw has a strong presence in Canada that it should use in its favor to tighten Walmart’s entry barrier further. The company could also place emphasis on expanding the Real Canadian Superstore (RCSS) chain to compete with Walmart superstores. As the incumbent market leader, Loblaw has an attractive set of strengths and competitive advantages that allowed it to prosper in the market. Furthermore, Loblaw can explore additional opportunity to increase and maintain market share, such as exploit emerging new technology, launch a new loyalty program for customers, make some supply-chain adjustments or expand to more locations. Thus, should Walmart decide to enter the Canadian market, Loblaw will be ready. The positioning map below shows Loblaw position in the Canadian market vis-à-vis other competitors. Based on the map, Walmart has a very long way to go before posing a real threat to Loblaw.  Will Walmart enter the Canadian grocery market with Supercenters? And Will it be successful? The following is Porter’s Five Forces applied to Walmart in the Canadian
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