Sainsburys and Waitrose Uk Supermarkets Porters 5 Forces...

INTRODUCTION 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. UK†¦show more content†¦Although Waitrose occupies a niche market, barriers for entry are still reasonably high as it has a very well established brand image of high quality products and is the market leader for organic produce. Threats of Substitutes The threat of substitutes in the food retail industry can be high among the ‘Big Four’ as switching costs are relatively low and products can be similar. However, most have their own private labels and also target slightly different markets, such as Sainsbury’s having more upmarket positioning and Tesco’s cost leadership. Waitrose offers unique and differentiated products, which are, in the eyes of the consumer, significantly superior. No other supermarket offers such premium quality products with great service and such a large range of organic products as Waitrose, so this makes them extremely difficult to substitute. (Euromonitor, 2008). Bargaining Power of Buyers Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.Show MoreRelatedJohn Lewis2068 Words   |  9 PagesTable of Contents 1. Introduction3 2. Theory of Michael Porter’s competitive five forces model3 3. Concept of value chain analysis 3 4. Role of Information System 3 5. John Lewis3 6. The implementation of Michael Porter’s competitive five forces model5 6.1. Traditional competitors 5 6.2. New market entrants5 6.3. Substitute products and services 5 6.4. Customers5 6.5. Suppliers 5 7. Value chain analysis 5 8. Conclusion6 9. References7 1. Introduction. TheRead MoreAsda Strategic Initiative Report4269 Words   |  18 Pages(CIM401) June 2011 1|Page EXECUTIVE SUMMARY Asda stores ltd. is a British supermarket chain which retails food, clothing, toys, general merchandise and financial services,[1] as well as a mobile telephone and broadband network (Asda mobile launched in April 2007). ASDA’S roots dates way back to the 1920s when a group of Yorkshire farmers came together and formed the Hindells Dairies. Its first supermarket was then opened under the Queens name in Castleford in the early 1960s and becameRead MoreSwot Analysis Of Tesco s Market Development Strategy2899 Words   |  12 PagesContents Introduction: 2 Organizational Audit: 2 SWOT Analysis: 2 Value Chain Analysis: 3 Environmental Audit 5 Pestle Analysis: 5 Porter’s Five Forces Analysis: 6 Core Competencies: 8 Strategic Options 9 Generic Strategy: 9 Market Development Strategy: 10 Product Development Strategy: 10 Success Factors: 11 Branding and Reputation: 11 Supplier Management: 11 Conclusion: 12 Bibliography 13 Introduction: Tesco has started its journey in 1919. Jack Cohen, the founder of Tesco used to sellRead MoreThe Strategic Evaluation of Lidl3580 Words   |  15 Pageswithin the UK Market. Submission Date: 26 January 2014 Contents Introduction 3 1. Analysis of the competition faced by Lidl within the UK food retail industry 4 2. The Strategic position of Lidl 5 2.1 Porter’s Generic Strategies 5 2.2 Bowman’s Strategic Clock 6 3. An analysis of the external business environment and how it affects Lidl 7 3.1 PEST Analysis 7 3.1.1 Political 8 3.1.2 Economic 8 3.1.3 Social 8 3.1.4 Technological 8 3.2 Porter’s Five forces Model 9 3Read MorePorters Five Force on Tesco Plc Essay examples3213 Words   |  13 PagesUtilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco Jeewan Pudasaini Greenwich University BA (Hons) in Business Studies 2011 Utilisation of Porter’s Five Forces Model in Evaluation of a New Market with Reference to Tesco Jeewan Pudasaini Blake Hall College Submitted To University of Greenwich in accordance with the requirement of BA (Hons) in Business Studies December 2011 Word count: 2905 Contents IntroductionRead MoreAsda Marketing Strategy5414 Words   |  22 Pages- 2.0 External Analysis: PESTEL Framework - 6 - 3.0 Industry Analysis: Porter’s Five Forces - 9 - 4.0 Internal Analysis - 11 - 4.1 SWOT analysis - 11 - 4.2 Value chain analysis - 12 - 4.3 Resource Competencies - 14 - 5.0 Vision, Mission, Objectives Measures - 15 - 5.1 Vision - 15 - 5.2 Mission - 15 - 5.3 Objectives - 15 - 6.0 Strategic Options - 16 - 6.1 Generic strategy - 17 - 6.2 Competitive strategy - 17 - 7.0 Developing Strategies - 18 - 7.1 Corporate strategyRead MoreA Paper Work of Customer Relationship Management of Tesco, and an Analysis of Consumer Behaviour, Business Environment and Pestel .4053 Words   |  17 Pagesstudy explored the customer relationship management of Tesco. Tesco is the leading retailer in UK. It manages over a thousand supermarkets, hypermarkets, and convenience stores in the United Kingdom, Ireland, Central Europe and Asia. The study analyzed the customer relationship management, changes in consumer behavior, business environment, and PESTEL, which is very important in strategic and competitive study of an organization, especially in the retail and service industry. Since the retail industryRead MoreTesco Segmentation Targeting Positioning3313 Words   |  14 PagesProduce an individual report which sets out a market strategy for a new market (segment) for Tesco to enter. This should be fully justified. (50% of overall marks and due by 3pm Thursday of week 8) Executive Summary: After analysing the changing habits of UK consumers, it is seen that consumers begin to shape the industry in the sense of â€Å"health consciousness† and â€Å"awareness of product quality†. Starting from this point, this report aims to suggest new segment for Tesco which gathers all its organic andRead MoreTesco Plc Swot Analysis3798 Words   |  16 PagesSWOT, PESTEL, Porter s Five Forces and Value Chain Analysis of Tesco | | Introduction This report is aimed at critically analysing the macro, meso and micro business environment of Tesco, one of the largest food and grocery retailers in the world, operating around 4,331 stores. Strategic evaluation tools such as PESTEL, Porter’s Five Forces, SWOT and Value Chain analysis have been used by researchers in order to achieve this aim. Tesco – Company Overview Tesco is among the largest food retailersRead MorePicards Pest and Porters Analysis. the Pontetial of a French Company Expanding Into the Uk.3306 Words   |  14 Pagescorporate strategy 5 2.3 SWOT analysis 6 3. PEST ANALYSIS 6 4. PORTER ´S FIVE FORCES Analysis of entering the UK Market 7 5. CONCLUSION 11 6. BIBLIOGRAPHY 12 7. APPENDICES 13 1. EXECUTIVE SUMMARY The aim of this report is to analyse Picard ´s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter ´s five forces model. Picard is