Loblaw
Loblaw Companies Limited: Preparing for Wal-Mart Supercenters
Situation Analysis * SWOT Analysis Strengths | Loblaw | * One-stop shopping destination with several services, which are food, kitchen wares, furniture, home supplies, hardware, electronics, office supplies, clothing, pharmaceuticals, toys, photo shop, dry cleansing, a bank, medical clinic, women’s-only fitness center, gas station (some stores) * Strong private labels, President’s Choice brands * Market leader in the supermarket industry with 34.9% * Larger number of stores in Canada with 670 stores when compared with Wal-Mart Supercenters | | Wal-Mart | * Good information technology system, that using Electronic Data Interchange (EDI) – vendors can be assure that will receive the certain amount of orders and better payment terms * Distribution center are located close to the stores. * High rate turnover of SKUs * Financial success from 2002 – 2006 | Weaknesses | Loblaw | * Has excess inventory * Poor supply chain policy * Lots of empty shelves * Brand image declines because of not doing fresh food. * High cost of interior design to build and operate * Lacking smart promotion | | Wal-Mart | * Smaller number of stores in Canada with more than 270 stores when compared with Loblaw Companies Limited | Opportunities | * Customers lead busy and budget-conscious lives | Threats | * Suppliers did not delivery on time |
* Financial Analysis In millions of $ | Loblaw Companies Limited | Wal-Mart Supercenters | Year | 2005 | 2005 | Net Sales | 27,627 | 1,860 |
Key Issue Should Loblaw executive team make any strategic change in order to protect market leader position of supermarket industry in Canada? If change, how?
Current Strategy Loblaw Companies Limited, which is the market leader in the supermarket industry, is using the pre-emptive defense strategy to improve the company’s weaknesses such as supply chain policy that Loblaw had
Situation Analysis * SWOT Analysis Strengths | Loblaw | * One-stop shopping destination with several services, which are food, kitchen wares, furniture, home supplies, hardware, electronics, office supplies, clothing, pharmaceuticals, toys, photo shop, dry cleansing, a bank, medical clinic, women’s-only fitness center, gas station (some stores) * Strong private labels, President’s Choice brands * Market leader in the supermarket industry with 34.9% * Larger number of stores in Canada with 670 stores when compared with Wal-Mart Supercenters | | Wal-Mart | * Good information technology system, that using Electronic Data Interchange (EDI) – vendors can be assure that will receive the certain amount of orders and better payment terms * Distribution center are located close to the stores. * High rate turnover of SKUs * Financial success from 2002 – 2006 | Weaknesses | Loblaw | * Has excess inventory * Poor supply chain policy * Lots of empty shelves * Brand image declines because of not doing fresh food. * High cost of interior design to build and operate * Lacking smart promotion | | Wal-Mart | * Smaller number of stores in Canada with more than 270 stores when compared with Loblaw Companies Limited | Opportunities | * Customers lead busy and budget-conscious lives | Threats | * Suppliers did not delivery on time |
* Financial Analysis In millions of $ | Loblaw Companies Limited | Wal-Mart Supercenters | Year | 2005 | 2005 | Net Sales | 27,627 | 1,860 |
Key Issue Should Loblaw executive team make any strategic change in order to protect market leader position of supermarket industry in Canada? If change, how?
Current Strategy Loblaw Companies Limited, which is the market leader in the supermarket industry, is using the pre-emptive defense strategy to improve the company’s weaknesses such as supply chain policy that Loblaw had