Essays on Analysis of Waitrose Competitive Advantage Case Study

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The paper "Analysis of Waitrose’ Competitive Advantage" is a good example of a marketing case study. Globalization and technology advancement has led to stiff competition, increased bargaining power for the buyers and availability of substitute products in the market as indicated by Gary & Prahalad (2000). This has led to increased need for the organizations to develop and implement strategic plans, systems and structures that are feasible in not only enhancing their ability to efficiently and competently meet the needs, preferences and expectations of the end-user but also, attracting and retaining new customers, increasing the market share and enhancing their sustainable competitive advantage (Porter, 2008).

This report seeks to highlight Waitrose, a player within the UK fresh produce retail industry. In addition, analysis of Waitrose competitive advantage using attributes of Kanter’ s New Wisdom and the D& W Model. Finally, the report will offer recommendations necessary to counter the challenges facing the company. Recap on Assignment 1 The UK fresh produce retail industry is a well-grounded, competitive and adaptable industry associated with effectively and efficiently meeting the changing and rising consumer needs and preferences.

The Industry handles the distribution of both fruits and vegetables where the latter register higher consumptions rates than the former. There has been a retail market evolution gearing towards the establishment of vertically aligned chains that serve supermarkets in the United Kingdom. The threats of new entrants within the industry are few owing to the high barriers to entry that allows only a few entrants to penetrate (Waitrose Case Study). In the UK fresh produce retail industry, the buyer bargaining power is relatively high, an unfavorable factor for retailers while the supplier bargaining power is low, a favorable factor for retailers.

There are no substitute products within and without the industry and thus, consumers have no option but to purchase the products and services offered by the industry (Waitrose Case Study). Nevertheless, the stiff competition within the industry hinders its growth. The 44.7 concentration ratio within the industry is illustrative of a perfect competition platform where major players compete for equal resources and consumers and owing to slow market growth, are compelled to fight for the existing market share. Among major retail players within the UK fresh produce retail industry includes Tesco, J.

Sainsbury, Asda, Safeway, Somerfield, Co-op, William Morrison, Marks & Spencer and Waitrose, and global supermarkets such as the Wal-Mart (Waitrose Case Study). Waitrose, a player within the UK fresh produce retail industry although it has a relatively smaller market share in comparison to other industry players, has formulated and implemented the ‘ category leadership’ strategy, which has enabled Waitrose to achieve a 5% market share in fruit retailing products by the year 2000 as highlighted by Waitrose Case Study. The company faces stiff competition from the industry’ s players such as Tesco and Sainsbury among other supply chains since the consumers have a wide choice of substitute retailers to choose from. Waitrose has developed its operations to add value to their products which are vital in attracting, retaining customers and sustaining their competitive edge.

Among value-adding operational activities include inbound logistics, operations, outbound logistics, marketing and sales, services, infrastructure, human resources management, technology development and procurement. The three main challenges facing Waitrose include stiff competition from larger players involving Tesco, Sainsbury, Asda and Safeway that have specific market share in which they distribute their products.

Retailers that are competing with Waitrose on a similar scale are Marks Spencer and Sainsbury who use the “ taste the difference” tactic, in the hope of encouraging Waitrose consumers to shop in their stores (Waitrose Case Study). This force of rivalry has been unfavorable for Waitrose and thus resulted in a low market share for the firm.


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