Loblaw Case Study
Loblaws companies limited
Loblaw Company Limited is currently Canadian’s market leader in the grocery sector including holding the 24th spot of the world’s top grocery retailer. While Loblaw seems to be doing very well due to the fact that they have a big portion of the market share, but it may not be for long when Wal-Mart becomes one its major competitors. Wal-Mart has decided to expand its business by entering the grocery sector in the Canadian market. Loblaw’s current issue is the affect that the entrance of Wal-Mart in the grocery sector will have on their current position and if they can remain in business with their presence. Loblaw needs to decide what their next move will be in order to stay competitive with its newest competitor, …show more content…
It has been proven that stores that try to compete with Wal-Mart have suffered, such has K-Mart. Other companies, like Best-Buy and Staples, have been able to stay competitive and increase their net income without having to bring in new departments to their stores. It is possible for Loblaw to continue what they are currently doing but it will require them to make some improvements.
Proof of Recommended Option
Although the entrance of Wal-Mart in the grocery sector is new in Canada it isn’t new to our neighbours to the South, the United States. Although they have took a big majority of the market and is the number one top food retailer it has not prevented other grocery retailers to compete with them. Kroger’s, Supervalu, and Safeway are just some of the few grocery retailers present in the states. These retailers have been able to maintain and increase their sales every year since the presence of Wal-Mart. Some factors that have helped in this is that Wal-Mart stores are mostly situated in the farthest part of town because of their needs of big pieces of property, which made these stores more favourable due to the fact that they were situated in more favourable …show more content…
The implementation of technology usually helps reduce cost in future years.
The disadvantage of improving their distribution system is that it is costly at the beginning and this money could be used in other aspect of the organization. Technology is not always reliable; there is always a possibility of a break-down, when this happens there could be an extra cost, some information may get lost, and they may not being able to function as effectively.
Although it is something that Loblaw should check into doing in order to be more efficient, it shouldn’t be one of its priorities considering that they have been able to have only 34 warehouses for delivering to 8766 stores, which gives a ratio of 257:1 while Wal-Mart at the most is 100:1 and they currently using the Radio Frequency Identification system. So although technology helps the efficiency of certain organization, it seems that this company is doing pretty well without it and the implementing new technology may cause more harm than good.
Competing with
Loblaw Company Limited is currently Canadian’s market leader in the grocery sector including holding the 24th spot of the world’s top grocery retailer. While Loblaw seems to be doing very well due to the fact that they have a big portion of the market share, but it may not be for long when Wal-Mart becomes one its major competitors. Wal-Mart has decided to expand its business by entering the grocery sector in the Canadian market. Loblaw’s current issue is the affect that the entrance of Wal-Mart in the grocery sector will have on their current position and if they can remain in business with their presence. Loblaw needs to decide what their next move will be in order to stay competitive with its newest competitor, …show more content…
It has been proven that stores that try to compete with Wal-Mart have suffered, such has K-Mart. Other companies, like Best-Buy and Staples, have been able to stay competitive and increase their net income without having to bring in new departments to their stores. It is possible for Loblaw to continue what they are currently doing but it will require them to make some improvements.
Proof of Recommended Option
Although the entrance of Wal-Mart in the grocery sector is new in Canada it isn’t new to our neighbours to the South, the United States. Although they have took a big majority of the market and is the number one top food retailer it has not prevented other grocery retailers to compete with them. Kroger’s, Supervalu, and Safeway are just some of the few grocery retailers present in the states. These retailers have been able to maintain and increase their sales every year since the presence of Wal-Mart. Some factors that have helped in this is that Wal-Mart stores are mostly situated in the farthest part of town because of their needs of big pieces of property, which made these stores more favourable due to the fact that they were situated in more favourable …show more content…
The implementation of technology usually helps reduce cost in future years.
The disadvantage of improving their distribution system is that it is costly at the beginning and this money could be used in other aspect of the organization. Technology is not always reliable; there is always a possibility of a break-down, when this happens there could be an extra cost, some information may get lost, and they may not being able to function as effectively.
Although it is something that Loblaw should check into doing in order to be more efficient, it shouldn’t be one of its priorities considering that they have been able to have only 34 warehouses for delivering to 8766 stores, which gives a ratio of 257:1 while Wal-Mart at the most is 100:1 and they currently using the Radio Frequency Identification system. So although technology helps the efficiency of certain organization, it seems that this company is doing pretty well without it and the implementing new technology may cause more harm than good.
Competing with