threat of new entrants in uk supermarket industry

a business culture that encourages investment yet have tight control on all expenditure (WM Morrisons, 2003 ) a strong national promotional programme, and WM Morrisons strategy is to create a dynamic national supermarket group, well positioned to compete successfully in the UK market place.Īccording to Morrisons chairman, Sir Kenneth Morrisons,Ī merger with Safeway gives them a chance to transform the scale and potential of their group and their retailing strengths across the UK. Market is concentrated amongst, the six largest retailers, who amongst them hold, 70%, of the market share. Sales by all food retailers were £92.3bn (excl sales tax) in 2001, of which the grocers contributed £77.1bn (83.5%). Report from Mintel's Retail Intelligence states, that food retailing in UK is one of the most dynamic and innovative retail sectors, with steady sales forecasted at 17%, between 20. UK food retailers are among the best in the Europe, and have been leading the way in product and store innovation and in systems. Before we analyse, we look into the food retail sector, market, as it is this day. In order to analyse WM Morrisons strategy, we look into the macro environment, using PEST analysis, and then the micro environment, with Porter's five-forces model (Nellis and Parker, 2002) is applied, which is a useful tool to analyse profitability in a market, and finally Morrisons competitive strategy in its take over bid, is evaluated, and developing its competitive analysis. By the end of the month, list of potential buyers included, WM competitors like, Tesco, Wal-Mart, Sainsbury and Bhs fame, Philip Green. WM Morrisons announced £2.9 billion dollar, takeover bid for the Safeway Chain of UK super markets. WM Morrisons is UK's fifth largest food retailer, as per the market share.

Morrisons Competitive Advantage The Strategic Clock.13ĥ.1 Low Price Low added Value.13ĥ.2 Low Price.14ĥ.3 Differentiation.14Ħ. Porter's Five Forces.7Ĥ.1 Degree of Rivalry.9Ĥ.2 Threat of Substitute.9Ĥ.3 Power of Buyer.9Ĥ.4 Power of Supplier.9Ĥ.5 Threat of New Entrants.10Ĥ.6 Five Forces company perspective.10ĥ.

3Ģ Defining the market.3ģ PEST Analysis.4Ĥ.

Threat of new entrants in uk supermarket industry