Supermarkets: Case Study

Topics: Wal-Mart, Price, Strategy Pages: 1 (355 words) Published: October 27, 2014

1. List the supermarket chains in your city, and identify their strengths and weaknesses? The supermarket chains in my city are Carrefour, Union Co-op, and ALMadina. The strengths of Carrefour that it offers a wide range of products. It offers sales and discounts to its customers. Carrefour has an excellent range of private brands. The weaknesses of Carrefour are that it does not easily compete on price with ALMadina , its sales and discounts are temporary measures to get in customers, and it does not have a long-term strategy to keep prices low. Union Co-op strengths are low prices, with a wide range of products. The weaknesses of Union Co-op are its poor reputation with employees, reports of excesses with suppliers, and dubious sourcing. ALMadina strengths are its reputation for fashion and good quality. The weaknesses of ALMadina are relatively higher prices, perception of higher prices, and low variety in certain lines of products. 2. What business-level strategies are these supermarkets currently pursuing? The business-level strategy of Carrefour is cost leadership. It is attempting to buy in bulk and reduce prices. Still, it carries several products that target the premium segment. For example, Carrefour Value is low-priced but private selection is high-priced. The business-level strategy of Union Co-op is cost leadership. It buys in bulk and sources its products from anywhere in the world. It buys where the raw materials and labor is cheapest and sells the products in its stores.The business-level strategy of ALMadina is differentiation. It sells high quality and high fashion products. It has positioned itself as a high quality premium chain. 3. What kind of supermarket would do best against the competition? What kind of business-level strategy should it pursue? The kind of supermarket that would do best against competition will be stores selling low-priced products. Discount stores would be successful. The business-level strategy should be cost...
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