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I will pay for the following essay A)The supermarket Wm Morrison has recently committed itself to an ambitious cost-advantage strategy in an effort to defeat more recent entrants to the market such as
I will pay for the following essay A)The supermarket Wm Morrison has recently committed itself to an ambitious cost-advantage strategy in an effort to defeat more recent entrants to the market such as Lidl and Aldi. Evaluate this approach and discuss whether an established supermarket suc. The essay is to be 2 pages with three to five sources, with in-text citations and a reference page.
Using SWOT analysis, Morrisons has the ability to use cost advantages strategies as a way of keeping away new entrants (Powell, 2010). Morrisons has its strengths lying on the huge number of superstores that it owns. With this, it is possible to have a large market share with low prices due to competitive advantage and mass production of goods at low prices (Mintzberg, 2010). The other strength lies with the brand and the already huge market share that the company owns. The company enjoys the fourth largest market share in the UK and also enjoys a good brand name that is recognized within the UK. In addition to this, the company has low prices compared to Aldi and Lidl and maintains customer loyalty by awarding points on their credit cards that are redeemable. The company also uses online trading that will also cause competition to new entrants like Lidl and Aldi. The weakness of cost reduction strategy is that it may lead to huge losses if marketing and branding of the organization is not well done. The company has opportunities especially with the acquisition of co-op and Somerfield stores. The company is threatened by stiff competition from new entrants that are offering same services at relatively low costs.
Differentiation strategy is a factor of competitive advantage in that the firm provides goods and services that other competitors have not started offering. The most important of the strategy is the cost leadership strategy in which the firm offers the lowest prices and services to its consumers compared to its competitors within the same industry (Rijamampianina & Rasoava, 2013). Firms that enjoy competitive advantages are firms that enjoy some of the resources that its competitors do not possess. Some of the competitive advantages that firms may enjoy include brand name, large market share, customer loyalty, and access to resources at cheaper prices compared to stiff competitors (Warf,
