Morrisons supermarket - financial report - page 3
Keywords: Morrisons,Finanial report,supermarket,performance of morrisons
By maya on 02/05/2008
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 3 of 14 pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14
is no diversification for Big-Four (www.answer.com).
Expanding business – Introduced by ASDA, supermarkets have expanded their business to non food sector which can yield high profit margin. To enhance position in convenience sector, supermarkets are racing for acquisition of small sized stores.
Substitutes
Less threat of substitutes – With the main supermarkets’ acquisition of convenience stores chains, the number of independent convenience stores shrinks. Sales for independent food retailer keep going down. Although traditional market still runs, it can not compete with supermarkets in any way.
Potential Entrants
Low threat of new entry – Supermarket industry is growing to oligopoly. Due to the high economies of scale, strong learning curve effect and large capital requirements, it’s difficult to enter in this industry.
1.3. Main Players
1.3.1. Main Players
Supermarket industry is dominated by five top companies. Here cite three main Morrison’s competitors for interpretation.
Tesco Plc.
Tesco Plc. is the UK's largest and most successful supermarket chain, with a market share of 28.1%, and its subsidiary Tesco Stores Ltd. owns a significant market share. Tesco operates 979 outlets worldwide, 730 of which are in the UK. Tesco is placing its emphasis onto neighbourhood shopping, with an expanding chain of convenience stores. The company now operates four chains: Tesco Supermarkets, Tesco Metro, Tesco Extra and Tesco Express. The expansion of the Tesco Express brand has strengthened the company's ability to cater for 'top up solutions' as well as the weekly family shop.
ASDA Group Ltd.
ASDA Group Ltd, which was acquired by Wal-Mart in 1999, has specialized in bulk selling at low prices since it was established in 1965. ASDA engaged in the operation of food, clothing, home and leisure superstores and property development since the acquisition and it has sold an increasingly important range of non-food lines. Standing 16.70% of market share definitely has enforced the organization’s leader position in the whole market.
J. Sainsbury Plc.
J Sainsbury Plc. operates the UK's second-largest supermarket chain through its subsidiary Sainsbury's Supermarkets Ltd., with a market share of 15.3% in total. It operates 800 supermarkets, 440 of which operate under the Sainsbury's name itself. The supermarket chain bills itself as focusing on quality rather than price. J Sainsbury runs a strong non-food offer in its retail of Adam's children's clothes, Jeff & Co and a trial of a home-enhancements range.
1.3.2. Market Share
In terms of value, supermarket is dominated by five top companies and the market share is illustrated
Last 5 comments…
There have been no comments posted for this article, but you need to register if you want to be the first!