Loblaw

In: Business and Management

Submitted By lucrenda
Words 399
Pages 2
Loblaw has indisputably been the market share leader in Canadian grocery. In a growing industry with fierce competition, Loblaw's current strategy has allowed them to dominate the market. Focusing on driving down costs and differentiating both its products and stores, the strategy has enabled the company to thrive. In an industry already filled with strong competition, a new threat is surfacing with the world's largest retailer, Wal-Mart, penetrating and expanding into the Canadian grocery market.

Wal-Mart has a full grocery offering in their SuperCenters, which means that consumers can now do all of their shopping in one place. Not only will competition drive prices down but Wal-Mart's efficient use of IT in their supply chain will force competitors to adjust to become more efficient. The fact that Wal-Mart already has a very large presence in Canada and that the food industry is growing makes the opportunity extremely attractive for the company. With such international success, it is unlikely that the world's number one retailer will be unable to generate similar success in Canada.

Loblaw's main goal should be to protect and increase their dominance in the Canadian grocery industry. The first step is to evaluate their current strategy and determine whether or not any changes must be made to counter the Wal-Mart threat. Loblaw should focus on their competitive advantages that allowed them to prosper in the industry. By doing so, they can reinforce Wal-Mart's barrier to entry and hopefully hold on to their market share. It is important that Loblaw does not try to compete with Wal-Mart head on. They should focus on attracting customers by offering unique products that can only be found in Loblaw stores. Enhancing their President's Choice brand and expanding their customer loyalty program are other ways that Loblaw can further differentiate themselves in the…...

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