Essay on Loblaw Companies Limited

1368 WordsOct 22, 20086 Pages
The grocery industry has a relatively high market commonality; a lot of grocery stores are somewhat related in terms of technologies used, labor force and the products or services offered in the stores. Differentiation with other competitors is key for survival in this highly competitive industry. External Environment Demographic Segment Canada’s demographic trend is very unique due to the increasing number of immigrants and its aging population. Ethnics come to Canada mainly from China, South Asia, Middle East, Central and South America, and Caribbean. The increase in immigrants create a demand for the grocery industry to carry a broader line of products that cater to its multicultural customer base. Furthermore, Canada’s aging…show more content…
This appealed to customers and Loblaw was able benefits from the first-mover strategy. By taking advantage of its suppliers’ low-level bargaining power and the industry trends of high-priced products, Loblaws created high quality private label to target different customer segments. Loyalty Program Strategy Due to high competition in the industry and high bargaining power for buyers, Loblaw offers loyalty programs including President’s Choice Financial and PC MasterCard, to encourage repeat business. By providing added-value services, consumers can benefit from unique experiences and Loblaw can further differentiate its brand from its competitors. Meet the Needs Strategy To satisfy consumers’ needs, Loblaw established strong regional brands such as Provigo in Quebec, and also built superstores that focus on particular product categories. By adopting a multi-format approach, Loblaw is able to cover a wide range of prices to further appeal to consumers. By the same token, responding to the demand of one-stop shopping and the tendency of growing convenience store, Loblaws also offer non-food items to meet the daily needs of every household. Core-competencies Resources: Capabilities: Wide product range - Effective promotion of brand-name products Value-added services - Effective customer service Up to date technology - Large and well-designed store Convenient locations Core competencies: Based on the Five-Business-Level

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