Questions and Notes: Loblaw Case Study
Assignment No.1
COMM 401
Question 1: What’s Loblaw competitive position/business-level strategy?
Loblaw was the market leader in Canadian grocery with 32% of market share. In the global market, Loblaw was the 24th largest grocery retailer in 2001. Its strategy had following elements: * Use cash flow generated in the business to invest consistently. * Purchase real estate to maximize flexibility. * Use a multi-format approach to maximize market share. * Focus on the food but serve the customer’s everyday needs * Build customer loyalty. * Implement and execute plans and programs perfectly. * Improve the value proposition.
Question 2: Should Loblaw be afraid of Wal-Mart?
No, Loblaw shouldn’t be afraid of Wal-Mart, listing the following reasons in internal analysis:
Strength:
* Canadian grocery stores co-operated on the sully side. Big retailers owned wholesalers and sold to independents. Higher Loblaw’s market share, more power it commanded. * Loblaw knew consumers’ habit well. Building the customer loyalty was in its strategy in the first place. * Loblaw’s core competence was food. * Loblaw’s operation/cost efficiency is high. According to the Exhibit 9, the capability of implementing and executing plans and programs was improved obviously. * Loblaw already had high market share. Multi-format made it have four types of stores: corporate stores; franchised stores; associated stores and independent accounts. * Loblaw had well-organized company structure
Question 3: What should Loblaw do to prepare for the entry of Wal-Mart? Design an action plan.
Threat:
* Wal-Mart was the largest retailer with most employees and store size. * Wal-Mart lowered its own prices and forced competitors to do so. * Wal-Mart established close relationships with its suppliers. * Wal-Mart had ability of influencing the global market. * Wal-Mart had Every Day Low Prices strategy. * Wal-Mart used technology...
2) Case 3:
COMM 401
Question 1: What’s Loblaw competitive position/business-level strategy?
Loblaw was the market leader in Canadian grocery with 32% of market share. In the global market, Loblaw was the 24th largest grocery retailer in 2001. Its strategy had following elements: * Use cash flow generated in the business to invest consistently. * Purchase real estate to maximize flexibility. * Use a multi-format approach to maximize market share. * Focus on the food but serve the customer’s everyday needs * Build customer loyalty. * Implement and execute plans and programs perfectly. * Improve the value proposition.
Question 2: Should Loblaw be afraid of Wal-Mart?
No, Loblaw shouldn’t be afraid of Wal-Mart, listing the following reasons in internal analysis:
Strength:
* Canadian grocery stores co-operated on the sully side. Big retailers owned wholesalers and sold to independents. Higher Loblaw’s market share, more power it commanded. * Loblaw knew consumers’ habit well. Building the customer loyalty was in its strategy in the first place. * Loblaw’s core competence was food. * Loblaw’s operation/cost efficiency is high. According to the Exhibit 9, the capability of implementing and executing plans and programs was improved obviously. * Loblaw already had high market share. Multi-format made it have four types of stores: corporate stores; franchised stores; associated stores and independent accounts. * Loblaw had well-organized company structure
Question 3: What should Loblaw do to prepare for the entry of Wal-Mart? Design an action plan.
Threat:
* Wal-Mart was the largest retailer with most employees and store size. * Wal-Mart lowered its own prices and forced competitors to do so. * Wal-Mart established close relationships with its suppliers. * Wal-Mart had ability of influencing the global market. * Wal-Mart had Every Day Low Prices strategy. * Wal-Mart used technology...
2) Case 3: