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 Course tutor Ian Edwards 2009 Contents or page index Introduction . p. 3 Background . p. 3 Current dodging 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 of the some popular retailers in UK and it offers a great determine and quality of food. For me, as a student and an supporter always looking for fresh, healthful food at soundly prices it is on of the best options to choose. That is wherefore I nourish chosen this family to evaluate. Also, I will be able to find some revolutionary information nearly Wm Morrison, which will be useful for me as a customer.The essay includes information well-nigh background, current strategy, strengths, weaknesses, opportunities and prospects. Background 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, pass a vide appreciation of goods including other brands and own label products. The company is headquartered in Bradford, the UK and employs about 124,530 people. And it has assuranced to create about 5000 jobs this year. It operates over 382 stores and 287 petrol stations on the whole over UK. With such a growth Morrison became a segment 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/ federation-history1/ (15/11/09) Current strategy Wm Morrison has a tidy sum called Food Specialist for Everyone. It has ternion different brand values Fresh, Value 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 prepare more freshly food than any other retailer. Thats why they obtain more ply preparing food than others.The company is inviolable by having their own factories, production facilities and scattering net kick the bucket. With these facilities they can get food to stores faster so that it is always fresher. Value Value is the key to the vision and is very important in the market conditions. They offer quality and freshness at a price which people like. Their offers are 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 available 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 superior school revenues of ? 14. 5 billion, Morrison is UKs fourth largest food retailer. The company operates 382 stores and serves 10 million customers each 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 many others.It develops the brand image of the company and provides a competitive lead. vertically integrated trading operations Morrison is unique food retailer because it is the only one which owns and runs fresh food make 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 high level and is solid in its operations. Focus on conscious consumers In response to the street corner 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 partiallyy foods and many others. With such a strategy Morrison can set out sales in a weak economic environment. www. mar ketlineinfo. com. lispac. lsbu. ac. uk/library/Default. aspx (16/11/09) Weaknesses Lack of taking part in online shopping Online shopping is growing every year in the UK. With such a high speed of growing online shopping, supermarkets start their online sales channels to emergence 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 envision 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. One part has been completed, to rebrand all stores and over 3,000 own-brand Morrison products have ne w 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. Growth in mystical brand markets The orphic brand market is about a strong growth in sales and is expected to remove 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 study 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 inhering 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, including eggs, cheese, potatoes, mushrooms, tea bags a nd muesli. The growing market for organic products could largely 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 big pressure during such difficult economic multiplication. 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 swelled minimum wage has increased from ? 5. 73 in October 2008 to ? 5. 80 which will come into effect in October 2009. An increase in labor costs will increase Sainsburys in service costs and regard its margins.Intense aspiration Morrison is facing intense competition in their business from other supermarkets and stores. Tesco drives trough quadrupl ex store formats. Marks and Spencers and Waitrose supermarkets are planning development in the UK. Growing competition could lead to the set 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 top 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 recession and intense competition from other supermarkets. Appendic es Appendix 1 SWOT analysis overview Strengths Weaknesses pixilated 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)