Porters 5 Forces and Pestle Analysis in Grocery Retail

After WWII many women entered the workforce which only fueled the fast food industry. “A generation ago, three-quarters of the money used to buy food in the United States was spent to prepare meals at home. Today about half of the money used to buy food is spent at restaurants – mainly fast food restaurants” (Schlosser 4). Typical jobs of a housewife, such as cooking and cleaning, are now being done by other industries (Schlosser 4). The men and women of the household no longer have the time or energy after work to prepare a meal, so they turn to the fast food industries to do the job for them. Society today is starting to believe that the American dream can simply be advertised and purchased.

As for the author’s augment about how women shop to seek a sense of independence from their husband and family(Norton, page 89), I have to say that I strongly disagree. Women should not feel depended on to their husband just became he is bringing home the bacon. A women’s identity should be based on her intelligence and contributions to the society. If a women become less depend on just because of less financial support from their husbands, I have to say that is just wrong and pathetic and evil. As a feminist, I believe in gender equality. I have to admit I may be a little bias here. Women can seek self-worth from working, volunteering, and even directly participating in their daily life. People can respond to my arguments by claiming that the author does have some sharp pieces of evidence on the reasoning behind the behaviors of shopping homemakers. I, hereby, argue that shopping is just a small portions of their life, there are so much more aspects of life that contribute to defining their

1.3 Physical Resources & Capabilities The ALDI brothers took over the family business of their parents in 1946. World wide expansion led to enormous growth. This comprises around 9800 stores (1000 to 1500 SQM each). The layout is simple with wide ails designed to refill shelves in the fastest, most convenient way {Brands, D. 2003}. They offer a small assortment of mainly fast-moving items (approximately 700 food – including a slim and organic line- and non food products). Small warehouses are located at the back of each store. Affiliates are equipped with limited technology such as intelligent cash systems high-end product concerning quality and price and bottle deposit machines. ALDI won the 2008 energy management award for great results in terms of cooling systems, illumination etc. Most stores have about 100 parking space and a shopping cart area near the entrance. ALDI has a long history which implies that they have gained great experience over the years. The location and layout of stores are designed to support fast and efficient supply and not especially aimed at customer needs. This is a weakness. Stores advantageously located as there are in convenient reach for consumers. Their product range is adapted to various consumer needs (organic, healthy living). The technological equipments are of high quality enabling fast operations at the checkout (ALDI’s staff are two times faster compared with other similar operations). This is

1. The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive

So how do all these changes in society and family affect the division of household labor?

What are two ways women’s domestic duties are affected by those jobs performed outside the home? “Throughout history, women have made major economic contributions to their societies and families through their labor” (Lindsey, 2011, pg. 273). However, there is old rumors that state women clearly were declined the opportunities to bound in any form of clamorous work of any kind. Though, that is no longer the case today, for many women join the men in the fields, to help process the crops in order to provide much needed nutrients for their families; than ever before. “To explain the world of work for women, sociologists focus on four major types of production in which women have traditionally engaged: producing goods or services for consumption

On the other hand, when both partners share the breadwinner role men are more likely to increase their core housework tasks in companion to men in the ‘new traditional’ and male-breadwinner families. Consequently, many studies found that gender attitudes are still primary indicators of who does housework, thus women still do two-thirds of housework where men do two-thirds of paid work. It is noticed that there have been significant changes for women over the last 6 decades to participate in the labour force, yet there was hardly any change to the division of core household work between men and women.

Women's participation during World War II has had significant results throughout history. It has lead to economic advancement for them specifically after the post war Baby Boom period. The research is filling practical information about the advanced affects woman had on their family income during this time. To get my results I analyzed ten sources and read through each one and found important quotes and details in each. As a result of this I learned that after World War II this was the beginning where woman had a large impact on the economics in their households. One major causes of the U.S. postwar baby boom was the increased demand for female labor during World War II. The effect of the war on female employment was not only large, but also

Switching Cost: If there is anything that can go in favor of a new entrant is switching cost of the buyer. Only loyalty buyers typically have these days is to value. If a new entrant can offer better value, buyers can switch to the new entrant with no switching cost. Better value can only come from sacrificing profits which might deter new entrants as a low profit margin does not promises long term growth.

In addition to an increased provider role, women were also taking on many more duties around the house and with the children. Due to the reduced credit and skyrocketing prices, men were forced to spend more and more time away from home working on coffee, sugar cane, or cattle plantations. Women would have to go weeks at a time without the presence of her husband in the household. The increasing occurrences of this, led to a growing feeling of independence and resourcefulness among the women of the community. Men were

In an effort to diversify its business, Sir Anwar Pervez’s cash-and-carry group, Bestway acquired The Co-operative’s 774-branch pharmacy business for £620 million. UK’s third largest pharmacy business fought off stiff competition from its rival firms, but resulted to the sale of the

The bargaining power of customers is high. First of all, the customer size is tremendous globally, which also has an accelerating growth rate in recent years. Customers’ leverage is strengthening as a result of this. Another inevitable factor is that with countless retailors online, there is low switching cost for customers to find other alternative companies that suits their desire to conduct purchases. Moreover, consumers today are more sophisticated. Consumers are less commit to impulsive-buying, yet are more willing to study about product features and evaluate their options before purchasing online. Their purchase pattern can also be hard to learn too.

The paper provides analysis of Ice-Fili, and the paper reveals that Ice-Fili is one of the important ice cream producers in Russia. However, the entrant of foreign ice cream producers such as Nestle has made Ice-Fili to face stiff competitions within the industry. Porter five analysis reveals that Ice-Fili has not been able to compete effectively with foreign companies because the company still relies on imported equipment and technology and traditional method of production, which lead to high cost of production.

Porter’s five model is defined as the framework that evaluate the position of a company in the external environment with focus drawn on the level of competitiveness (Roy 2011). The framework considers factors such as rivalry, substitute goods, the power of suppliers and buyers as well as new entrants. Four forces can influence the success of Michael Kors. The first one is competitive rivalry. Here, the struggle is about maintaining performance despite different tactics used by different companies to increase sales. For instance, Ralph Lauren uses premium prices for quality products to differentiate itself, while Coach uses product variety within the line of handbags to remain competitive (Stewart 2016). Also, when the industry is flooded with similar companies producing similar merchandise, the probability of a company stagnating is high because consumers have a variety to pick from. Hence, the need to establish loyal customers.

The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.