Corporate Stratergy Case Study Example | Topics and Well Written Essays - 3000 words

Corporate Stratergy - Case Study ExampleOver the last few decades the UK grocery market has become a supermarket-dominated employment (Ritz 2005, p 22-23). The dominance of the bases in terms of supply chain efficiency, ubiquitous stores and huge product range make entry of new players in the market difficult.Asdas positioning strategy is to be UKs cheapest supermarket grocer. The economic slow down has suddenly made a cheaper supermarket a more attractive proposition to the consumers. Morrison began as a butter and egg merchant, and went on to be a leading supermarket chain. It was by taking over the Safeway chain that Morrison began to make its large-scale presence. In fact, Morrison was forced to merchandise more than 50 stores it took over to avoid local monopolies. Some of the stores were also sold off beca routine it did not fit in with the groups large format identity. Sainsbury group has a history of more than 150 years. Good quality at reasonable prices was the hallmark of the group from its first store. During the course of years, Sainsbury found itself sandwiched on whizz side by the cheap stores and on the other side by the up market stores equal Waitrose. Tesco cornered the status of being termed the first superstore. The supermarkets grew when rpm (Resale Price Maintenance) was abolished, thereby giving the option of more discounts to the customers. Lower prices be the key strategy for the supermarket groups. All four groups own superstores, have lower prices or reasonable prices as a strategy and argon perceived as one strategic unit by customers as well as in the Industry. b. Analyse the microenvironment that these companies must operate within.Strategic Analysis of the UK supermarket industryUK retail industry is a supermarket-dominated business. Smaller players exist in the periphery of the business. The supermarkets control the suppliers. Cheaper products that are provided by developing countries also threaten the suppliers. The suppl ier margins have consistently eroded with the power of the big four. Though food remains the main way on the big chains, as customer spend more time in the stores, the non-food portfolio that they hold also become profitable. The supermarkets have diversified to add products like clothing, electronic goods, mobile phones and even banking products and legal assistance. The consumer movement has also ensured that the supermarkets focus on remaining green. This is true in case of a reluctance to use Genetically Modified food to carbon labeling of electronic goods. The supermarket chains are also experimenting with alternate store formats to target different type of customers. Continuous cosmos and fast response to market conditions are a given in the industry. THE PESTEL AnalysisPolitical factors affecting the Industry The political climate that could influence complicate policy decisions, EU, Euro, taxation policies etc. A couple of issues that could alter the political pressure on the supermarkets include pressure from the farming community which claim that they are getting squeezed by the bargaining power of the supermarkets and as the weakest link in the chain they