Costco aim is to be a cut above by offering many unique or unusual items. Their marketing strategy for stores is like a treasure hunt. This high and low shopping experience is a powerful elixir for middle class shoppers and the same experience is carried out on the on line site by not offering commonly available products to keep customers hunting to entice that I have to get it now it may not be here again shopping experience. 3. Costco Wholesale is the world’s largest membership warehouse club.
Porter five forces Whole Foods Inc: Whole Foods Market Inc operates within the industry for food and drug retailing. Food retailing is a large, intensely competitive industry. Their competitors include local, regional, national and large international supermarkets, natural food stores, warehouse membership clubs, small specialty stores and restaurants(Whole Foods Market 2011). We will limit the analysis to supermarkets that operate in the U.S market. Further we will limit the industry to Porters definition from 2008, that if the industry structure for different products share the same buyers,suppliers,barriers to entry and so forth they can be defined in the same industry.
AEA in 2005 selected some qualified workers and then started the growth of the firm tremendously. Dough Hansel the new CFO, mark that there was no specific infrastructure for the company to support the manufacturing and controlling the policies and procedures. The company sells its product in the market at price of $4.50 at a wholesale price but actually, the retail price of the product must be $9. This created a sense of feeling in the minds of the consumer that the product does not meet the quality. The company researches show that 15% of the customers sold its product at a discount to consumers and 15% is sold at premium.
In addition, each plant bought many items from local suppliers. Carson’s decentralized approach to procurement was indicative of its overall strategy toward dealing with its constituencies, including employees, customers, shareholders and communities. The non-carbonated beverage market (specialty juices and waters) took off in the late 1990s and early 2000s, and thus, demand for Carson’s bottles heated up. As it became clear that this trend would continue through the coming years, Carson faced increasing competitive pressures to drive prices down and company management recognized that dealing with such a fragmented supplier base was hindering “efficiency” at the company. Michael Bundy, the company’s president, hired an experienced materials manager, Rick Haskell, as Vice President of Corporate Procurement, a new position in the company.
| ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business. They will also need to advance their technology within the company. The bargaining power of buyers allow for the customers that purchase loyalty from the company to pick and choose the products they need for the best price. This helps with the growth of the company; the company depends on customer loyalty to stay in business but this allows for the competitors to compete against one another. The bargaining power of suppliers hurts
External Analysis Industry rivalry: High According to the case Chipotles leading competitors are Taco bell, Moe’s southwest grill, Qdoba and smaller chains Baja fresh and California tortillas. Fast food restaurants (such as Chipotle) that offer fresh quality ingredients are a threat to other regular fast food restaurants and are viewed as main attributable loss of customers. However the top competitors are able to offer and same services as Chipotle. Threat of Substitutes: Moderate Chipotles food offerings can be substituted with store bought ingredients. Also with the increase in stores offering a selection of organic ingredients, customers can opt to making their own burritos at home.
Unit 3 Assignment 2 Task 1a Carrying out a swot analysis for Tesco Strengths • The strengths for would be: • It is a powerful brand • It has a reputation for value for money and a wide range of products all in one store. • It is the UK’s largest supermarket with over 26% Market share • They are able to increase there market share • Cheaper then most supermarkets Weaknesses would be: • Tesco is not be able to provide a better service in books then Whsmith as they are more specialist in this region • Tesco controls its own massive empire which could lead to some weaknesses as due to the huge span of control from bureaucracy • They do not specialise and focus on one particular market like other companies, which can have a negative affect • They have competitors such as Morrison’s Opportunities would be: • They could expand more • Provide cheaper prices then Asda • Having special offers • Having lots of variety • Merging or forming a strategic alliance with another organisation would be a great way to improve their services Threats would be: • Other supermarkets would provide similar products • Some company’s would sell cheaper products then Tesco • They have competitors such as Asda • They have a growing public concern and annoyance that Tesco is threatening the smaller retailer Political • The price of petrol changing • There is growing concern that Tesco is getting too big • The organisation is driving out the competition • An increase in unemployment due to a downward turn in the world economic • Trading policies • Employment Law Economical • Impact on sales of the credit crunch • Exchange rates • Inflation • Interest Rates Social • An increase in immigration from Eastern Europe resulting in a demand for new goods • Changes in fashion • Lifestyle changes • Branding • Health and welfare
In America the stores open approximately 24/24 per week they spend (Americans) a lot of time on shopping instead Germans stores close by 5 PM on weekdays and no shopping on Sundays. This shows that Germans customers don’t have the habit of spending lots of time in a store. Germans like to see the advertised discount products upfront without having to ask the store assistant. But Wal-Mart chose to use its US style merchandise display strategy which is opposite to what is mentioned before. Wal-Mart stocked its store with clothes, hardware electronics and other non-food products; as a result more than 50% of the revenue was from non-food products.
Price The price is another valuable tool for promotion as it determines how much customers have to pay for the product. Walkers use the price as a promotional tool by printing it on the packaging, this shows the public that the RRP is what they are selling the product at and it withholds their corporate image of a fair value even if certain retailers decide to increase the price. This will help Walkers achieve both their aim and objective as it will be perceived as first class due to the price and value of the product and also will produce profits due to the mass purchase of the product
Morrison Supermarkets PLC is holding its own in the battle for the British supermarket customer, despite its relatively small size and regional focus. England's fifth largest supermarket group, behind the national giants Sainsbury, Tesco, Safeway, and Wal-Mart-owned Asda, Morrison remains somewhat concentrated on its traditional northern England region, despite moves during the late 1990s to open stores in the country's southern regions. Morrison operates 107 stores, some 80 of which include gasoline stations. More than 30 Morrison supermarkets also feature branch banking in a partnership arrangement with Midland Bank. Morrison stores stock some 20,000 items; Morrison's private labels account for more than half of all sales.