LOBLAWS! - ADMS 4900: Individual Assignment Case 3...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ADMS 4900: Individual Assignment #206605513 Case 3 Analysis: Loblaw Companies Limited Issue Identification: The case describes Loblaw Companies Inc. as a highly successful grocery chain within a quickly growing $66.8 billion Canadian food retailing industry. Loblaw, led by company president John A. Lederer, is Canada’s largest food distributor with $23.1 billion 2002 sales and 32% market share suggesting that as an established organization, Loblaw has substantial assets, capabilities and competencies. However the major issue of concern to Loblaw is the emerging international threat of Wal-Mart who is looking to pursue strong ventures in the Canadian grocery industry. Wal-Mart poses as a huge competitive force for Loblaw as historically, Wal-Mart has become the number one Canadian retailer after only six years of entering the Canadian market. Wal- Mart’s popular “Every Day Low Price” strategy has also earned itself top global ranks as the world’s largest retailer with $246 billion 2002 sales. Wal-Mart is also ranked sixth as a global grocery retailer compared to Loblaw’s 24 th which clearly exemplifies the magnitude of Wal-Mart’s competitive threat to Loblaw. The relative importance of this issue involves the fact that if Loblaw is unable to compete with Wal-Mart’s technology aided cost leadership strategy, then Loblaw’s favourable position is in immediate jeopardy. As such, the following situation analysis is inspired and will include feasible strategic alternatives in which Loblaw can adopt to not only maintain their primary position in the industry but also to attain a sustainable advantage over such powerful competitors as Wal-Mart. Analysis: PEST Analysis: Upon analyzing the case, one must take into account both the external and internal factors that contribute to the issue. The external consideration begins with PEST analysis (Figure 1), which does not carry much weight but does provide some general background of the current situation. While there is no major mention of political standings, economically Loblaw is in a high growth market with low customer prices, which is driving down inflation and decreasing costs of living (i.e. the “Wal-Mart Effect”). Socio-culturally, it is understood that groceries are a necessary commodities for survival and as such the wide target market includes all food consumers.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
#206605513 Technological considerations would indicate that Canadian retail technology is believed to be ahead of the U.S and that there is an increasing trend for technology based relationships with buyers and suppliers (i.e. customer loyalty cards and electronic databases). Such PEST information creates a general industry framework for further external analysis to build upon. Porter’s 5 Forces:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/26/2010 for the course ADMS 4900 taught by Professor Jungchinshen during the Spring '10 term at York University.

Page1 / 11

LOBLAWS! - ADMS 4900: Individual Assignment Case 3...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online