Contents Introduction 1 Common Size Analysis 1 Fixed Assets 2 Profitability 3 Current Assets 3 Credit Analysis 4 Return on Equity 5 Concerns 6 Conclusions 6 Appendices 7 Introduction Greene King (GNK) is the UK’s largest pub retailer with a current market capitalisation of £2.31bn (Source: Bloomberg, 11 November 2016) and revenue of £2.07bn reported in 2016 achieved via its 3,040 pubs and restaurants. On 23 June 2015, the company acquired the Spirit Pub Company plc (Spirit) in a £763.1m deal. (Source: Greene King, Annual Report 2016). JD Wetherspoon (JDW) operates around 1,000 pubs and 40 hotels, employing approximately 23,000 employees. In 2016 the company reported revenue of £ 1.6bn and a market capitalisation of £0.96bn. (Source: Bloomberg, 11 November 2016). The competition to attract UK consumers in a £19bn market with limited growth forecast (0.5%) is intense and dominated by four companies estimated to have a combined market share of 25.2% in 2016-17. (Source: Pubs & Bars Market Research Report, Apr 2016 – IBIS World). Whilst both companies operate within the same market, a key difference between the two businesses is the fact that GNK has an integrated structure of brewer and retailer. The following report aims to assess and evaluate the economic performance and financial aspects of the two pub retailers in order to form an opinion of their present and future financial prospects. Common Size Analysis Common size analysis allows us to compare the key
They want to expand into the lager industry which is excellent strategic move due to the fact that it allows them to create a niche market in the area. There are no local lager breweries in the area anymore this should definitely be displayed through sales profits.
Product offerings by these contenders are similar as Tesco’s to a huge degree. This procedure helps Tesco to ensure its commercial center by expanding competition. A large portion of the contenders of the Tesco have an equivalent or a bigger market share in the store business. By industry investigators, Tesco PLC has a twenty nine per cent of shares the grocery store industry.
The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.
JD Wetherspoon Plc is one of the leading pub chain and budget hotel in United Kingdom. The company has 775 pubs spread in UK and Ireland. The pub first started on
Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.
They have focused on building brand recognition and profitability by growing the business gaining assets to grow the company and products for greater customer satisfaction (About GMCR, 2004-2009). GMCR’s strategy to incorporate current large brands, such as Tully’s, Diedrich, and Keurig has helped to expand their customer base and satisfaction as well as the markets for their products (Phillips, 2011). Their focus on increasing their market shares in other companies will facilitate their expansion into new geographical markets and promote the brand. GMCR’s partnership with Keurig creates a larger consumer choice and the addition of agreements to create portion packs for the Keurig with companies such as Starbucks, Dunkin Donuts, and Newman’s Own helps set them apart from the competition (Invest in the Markets, 2011).
The Company must revisit objectives and goals and look into available resources (partnerships). At an external level, facing competition from other types of craft brew products. The Company needs to assess competitor’s strength and weaknesses, gathering data which in turn may provide a “loophole” for New Belgium to target the competitor’s market share. The Company will gather information of potential new customers. Figuring out why do customers select competitor’s product over theirs or what customers want, as tastes and trends are always changing. There will always be regulatory laws and social propaganda of “drink responsibility.”
The main activities of Greggs plc are that they are an immense competitor within the food to go market which is currently an immensely competitive market which is currently valued at £6 billion (Scott Wright, 2013). Due to this many companies are trying to penetrate this ever expanding market. Currently Greggs plc are the leading
The main competitors of Harvey Norman Holding LTD is the group of J B HI-FI, who has declared a sales revenue from 2.73Bn to 2.96Bn as an increase of 8.3% (P.2, JB HI-FI annual report 2011), compares to the increase of 9% of Harvey Norman.According to the figure,it seems Harvey Norman is doing better than J B HI-FI, but the business segment for J B HI-FI is much less diversified than Harvey Norman, therefore, J B HI-FI is actually doing better in just viewing the computer and software segment.
|92.7% |19,758,429 |93.1% |6.2 | |Tesco |6,185,522 |30.8% |6,453,370 |30.4% |4.3 | |ASDA |3,421,940 |17.1% |3,411,938 |17.5% |8.5 | |Sainsbury's |3,239,500 |16.1% |3,422,662 |16.1% |5.7 | |Morrisons |2,327,583 |11.6% |2,495,623 |11.8% |7.2 | |Somerfield |715,232 |3.6% |699,959 |3.3% |-2.1 | |Waitrose |795,406 |4.0% |805,006 |3.8 % |1.2 | |Iceland |343,713 |1.7%
Oligopolistic markets tend to have high market concentration ratios. In the UK, there are four primary retailers, noted below, and the 4 firm concentration ratio for the industry is 71.7%. Nevertheless, by comparison, the 4-firm concentration ratio is down from 75.2% two years’ ago, suggesting erosion from competitors such as Aldi and from Waitrose (Ruddick, 2015).
There are 92,796 grocery stores in the UK and the market value increase by 19.5% in the last 5 years and according to IGD forecast the UK grocery market should reach £203bn by 2019. But what we can see in the figure 1 that from 2009 to 2014 annual grow in the grocery market start decreasing from 4.9% in 2009 to 2.8% in 2014. One of the reason for this is difficult economic conditions which had an effect for consumer spending. Consumers choose to spend less money on food by buying less food or by looking for cheaper places. Retail market is diversified into three main sectors: Hypermarket and superstores which accounts for 42.3% of retail market, convenience stores 21.4% and small supermarkets 20.3% (Figure 3). So about 84% of sales are done in these three sectors. The biggest 4 retail chains in UK are: Tesco which takes 28.7% market share, Asda has 17.3%, Sainsbury’s 16.6% and Morrison’s 11%. (Figure 2) So, if we will sum up 4 biggest retail market chains we will have about ¾ of market share. Finally, a strong characteristic of this sector is competition with price wars and a
In 2000, it acquire the Lloyds pub chain consisting of 10 pubs so that the JD Wetherspoon acquire many different menu from
Since acquiring number one ranking in 1996, Tesco has developed a successful multiformat strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury’s. Also the Competition Commission’s report makes it very difficult for a competitor to challenge its scale and has effectively scuppered Wal-Mart’s chances of stealing UK leadership. Therefore, Tesco is in an enormously strong position in its domestic market.
– Current market situation: detailed consumer and business market segmentation and analysis of market drivers will be undertaken to identify the most valuable