Evaluation of Strenghts and Weaknesses of Morrison Supermarkets

pic Evaluation of Strengths and Weaknesses of WM Morrison Supermarkets Complied by Karolis Petkus Student number 2903678 line of ingatherings tutor Ian Edwards 2009 Contents or page index mental hospital . p. 3 Background . p. 3 Current strategy p. 4 Strengths . p. 5, 6 Weaknesses . p. 6 Opportunities p. 6, 7 Threats . p. , 8 Conclusion .. p. 8 Appendices .. p. 9 References .. p. 10 Introduction Wm Morrison is one(a) of the most popular retailers in UK and it offers a great monetary value and quality of food. For me, as a student and an athlete always facial expression for sassy-fangled, hefty food at good prices it is on of the best options to choose. That is wherefore I bring forth chosen this confederacy to evaluate. Also, I allow for be able to find some new information rough Wm Morrison, which result be useful for me as a customer.The essay includes information ab by background, current strategy, strengths, weaknesses, opportunities and prospects. Backg round Wm Morrison was founded in 1899 by William Morrison, an egg and butter merchant. Now, it is one of the largest supermarket chains in the UK, offering a vide range of goods including other brands and make label products. The company is headquartered in Bradford, the UK and employs slightly 124,530 people. And it has assuranced to create ab discover 5000 jobs this year. It operates e genuinelywhere 382 stores and 287 petrol stations all over UK. With such a harvest-festival Morrison became a member of the Big Four grocery retailers. ttp//www. guardian. co. uk/business/2009/jan/13/morrisons-supermarkets (15/11/09) www. morrisons. co. uk/Corporate/About-Morrisons/Company-history1/ (15/11/09) Current strategy Wm Morrison has a mountain called Food Specialist for Everyone. It has three different brand values Fresh, measure and Service. Those three values should give them flexibility to react to market changes and customer tendencies. Brand values Fresh The Companys aim is to bring in more warmly food than any other retailer. Thats why they have more staff preparing food than others.The company is strong by having their decl are factories, production facilities and dispersal network. With these facilities they can get food to stores quick so that it is always fresher. Value Value is the key to the fancy and is very important in the market conditions. They offer quality and freshness at a price which people like. Their offers be about saving customers money. And their prices are great value across the ranges. Service Because they have their own distribution network, they can be sure that the right products are always usable for our customers.The staff is well skilled so they give customers what they want fresh food served by helpful, friendly, well-trained people. http//lispac. lsbu. ac. uk/record=e1000089 (15/11/09) Strengths Financial performance With lofty revenues of ? 14. 5 billion, Morrison is UKs fourth largest food retailer. The company o perates 382 stores and serves 10 million customers all week. According to TNS market research, it has a market share of 12. 3 % in the grocery market. Morrison has achieved numerous of awards in 2008, including Retailer of the Year, the Grocer of the Year and some others.It develops the brand image of the company and provides a competitive lead. Vertically corporate operations Morrison is unique food retailer because it is the only one which owns and runs fresh food making and processing abilities. This company has 12 manufacturing places in the UK and a vide transport park. This is how the company provides economies of scale at a spicy train and is solid in its operations. stress on conscious consumers In reception to the recession Morrison has to offer something attractive to their customers. That is why company rolled out offers such as ? family meal deals, 2 for 1 offer on party foods and many others. With such a strategy Morrison can assume sales in a weak economic envi ronment. www. marketlineinfo. com. lispac. lsbu. ac. uk/ subroutine library/Default. aspx (16/11/09) Weaknesses Lack of taking part in online shopping Online shopping is outgrowth every year in the UK. With such a high secureness of growing online shopping, supermarkets start their online sales channels to affix the revenues. ASDA, Tesco and Sainsbury in the UK have started their channels in the online shopping. However, Morrison has not started this trend which could limit growth opportunities. ww. marketlineinfo. com. lispac. lsbu. ac. uk/library/DisplayContent. aspx? R=A72DB36B-5734-4779-B792-270152CA738A=4294836834=IDA2XUJBIDA2XUJB (16/11/09) Opportunities Optimization political program Morrison started an optimisation plan by 2007 to develop operations by FY2010. As a part of optimization plan, the company completed the re-branding of all its stores and over 3,000 own-brand Morrison products received new packaging. unrivalled part has been completed, to rebrand all sto res and over 3,000 own-brand Morrison products have new packaging. The Company also installed self-scan checkouts over half stores.Successful optimization plan could develop market share, brand value and success for the company. maturement in private brand markets The private brand market is about a strong growth in sales and is expected to reach about ? 52 billion by 2011. These products have high margin potential. . Morrison offers 18,000 product lines in a typical store, 32% of which are own-brand labels. The growth in private label products could be a major opportunity for the company and could increase its success. www. marketlineinfo. com. lispac. lsbu. ac. uk/library/DisplayContent. aspx?R=A72DB36B-5734-4779-B792-270152CA738A=4294836834=IDA2XUJBIDA2XUJB (16/11/09) Positive attitude for healthy foods Natural and organic food products sector is one of the fastest growing categories in food selling. Morrison offers a range of organic products, through its own label Organic, inc luding eggs, cheese, potatoes, mushrooms, tea bags and muesli. The growing market for organic products could mostly increase revenues. Prospects Recessionary climate Like most economies, the UK is now on recession, as well. Because of recession, unemployment is increasing and consumers have to be more cautious of spending.As a result, the companys sales and margins will be under huge imperativeness during such difficult economic times. www. marketlineinfo. com. lispac. lsbu. ac. uk/library/DisplayContent. aspx? R=A72DB36B-5734-4779-B792-270152CA738A&N=4294836834&selectedChapter=IDA2XUJBIDA2XUJB (17/11/09) Rising work costs in the UK Employment costs are on the rise in the UK. Te adult minimum earnings has increased from ? 5. 73 in October 2008 to ? 5. 80 which will come into solvent in October 2009. An increase in labor costs will increase Sainsburys in service costs and impact its margins.Intense competition Morrison is go about intense competition in their business from other supermarkets and stores. Tesco drives trough triplex store formats. Marks and Spencers and Waitrose supermarkets are planning development in the UK. developing competition could lead to the pricing pressures, which would reduce the companys turnover. www. marketlineinfo. com. lispac. lsbu. ac. uk/library/DisplayContent. aspx? R=A72DB36B-5734-4779-B792-270152CA738A&N=4294836834&selectedChapter=IDA2XUJBIDA2XUJB (18/11/09) Conclusion Wm Morrison has a good vision to their further marketing.They put a lot of attention on a fresh and healthy food which becomes more popular between consumers. With a strategy like this, they can stand strong between overtake 4 retailers in the UK. However, Morrison is not interested in online shopping, which according to the statistics will increase very fast in the next few years. What is more, in such difficult economic times consumers are eating out less and looking for cheaper forms of entertainment. It will be tough to keep high revenues facing rec ession and intense competition from other supermarkets. Appendices Appendix 1 SWOT analysis overview Strengths Weaknesses Strong market company Lack of taking part in online shopping Vertically integrated operations Focus on conscious consumers Opportunities Threats Optimization plan Recessionary climate Growth in private brand markets Rising work costs in the UK Positive attitude for healthy foods Intense competition www. maketlineinfo. com (16/11/09) References Websites www. library. lsbu. ac. uk (16/11/09) www. marketlineinfo. com (16/11/09) www. morrisons. co. uk (14/11/09) www. guardian. co. uk (15/11/09)