The Strategy Of A Competitive Market

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

Firms must consider many strategies when attempting to realize growth. Depending upon the stage of

In 1883, Barney Kroger never could imagine that his $372 investment into his grocery store would turn into such a successful venture (Farfan, 2017). One hundred thirty-seven years later, Kroger stands as a prime example of the American dream as it caters to millions of people across the continental United States. Kroger is poised to enter the next few decades with some uncertainty, but they are no strangers to adversity. They have endured an aggressive “#GROCERIESNOTGUNS” campaign to punish them for allowing open-carry within their stores by deferring to local legislation (Epstein, 2014). In 2008, they reacted to a report by GreenPeace criticizing them for not practicing sustainable practices related to seafood by removing some of their more

Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.

Marion Nestle, a teacher at New York University, examines how supermarkets are designed and how the design affects consumers in her essay “The Supermarket: The Prime Estate”. “Nestle teaches in the department of nutrition, food studies, and public health” (496). The essay was published in one of her numerous books, What to Eat: An Aisle-by-Aisle Guide to Savvy Food Choices and Good Eating in 2006. Nestle investigates the strategic method behind the store’s layout in this essay for the average consumer. Nestle portrays the manipulations of supermarkets to sell the most products possible to consumers through the store’s order and design through logos, pathos, and cause and consequence in the development of her essay.

Whole Foods Market is considered the most “green” of companies in supermarket retail by consumers. The supermarket mostly attracts a young, trendy demographic and has started to move into smaller suburban cities. Whole Foods has worked hard to get rid of its nickname “Whole Paycheck” that branded the store as out of price range for most consumers. To oppose claims of being too expensive, Whole Foods Market began offering promotions, discounts, and has a flat prices on groceries despite it costing them more. The idea is for customers to find plenty of deals to make up for certain products price inflation. Expanding the stores appeal to new customers has brought a few setbacks. Loyal customers spend almost three times more than what new customers do. (Gasparro, 2012)

This is obvious from McMillan’s account of working for both food growers and food sellers, which are each given their own part in The American Way of Eating. When stores adopt similar policies they become more and more homogenous. When consumers go to a grocery store, there are certain expectations of the ‘typical’ grocery experience that are kept constant from store to store. With the consolidation of grocery stores, the homogeneity of grocers has increased and grocery stores have become more alike. This leads into the second manner in which consolidation has affected the grocery industry. Since one grocer won’t offer a radically different product from another, grocers have to take actions that establish a unique identity and image, which often leads to these large companies giving back to their communities. Walmart alone, gave over $1 billion of its earnings to charity organizations just last year. I know this from experience as well, as when I was fundraising for the Bettendorf Speech and Debate Team, Walmart and Hy-Vee each gave the team grants. This behavior is also evident when McMillan cites a phrase from a Walmart training video, “We want a better life for

Globalization is not a new concept. It was first used in the 1970’s; however in recent years it has started to accelerate dramatically. Technological advancements, improved communications and the liberalization of trade have all contributed to increased globalization (BBC News, No Date]. The purpose of this essay is to explain the meaning of globalization, discuss the influence of globalization on the supermarket Tesco, and analyse the effects it has on the developing world. This essay will refer to Tesco, explaining the impacts that globalization has on their business.

The grocery retail industry worldwide has grown in recent years to become one of the most intensely competitive industries due to the continuous amounts of new entrants. A grocery retailer is one that sells food and other general household items. Hypermarkets, supermarkets, discounters and small grocery retailers are all under the grocery retail umbrella. Between 2003 and 2008, the grocery retailing industry accounted for 45% of store-based retail values sales over the world. The figures

Compare and contrast the market-based approach and the resource-based view as approaches to competitive strategy. To what extent are they rival or complementary views?

The five forces analysis shows that lululemon is confronted by moderate or low competitive forces.

Effective strategy is developed first by identifying and understanding the implications of the changing events in the business environment. Many of the events occurring currently have a wide international impact, and they may be seen to be influencing the results and responses of large supermarket retailers. The changes, or issues, that we see as important from a strategic planning perspective are:

There are two contrasting pressures that put opposing demands on an organization’s international strategy: global integration and local responsiveness. High pressure for global integration implies an increased need to concentrate and coordinate operations globally. This kind of approach cannot be applied to a food retailer for logical reasons.

The perfect competitive market is a description of a market where no participants are large enough to have the market power to set the price of a homogeneous product, this is because the conditions set for perfect competition are strictly applied.

Michael E. Porter, associate professor published the article titled “How Competitive Forces shape Strategy” in Harvard Business Review in 1979. This article is retitled as “The Five Competitive Forces That Shape Strategy” and published in Harvard Business Review in 2008. Michael E. Porter developed the model of Five Competitive Forces which is defined as “Competitive Strategy – Techniques for Analyzing Industries and Competitors”. It has become a main device for analyzing an organizations structure in strategic practices.