Strategic Analysis of Waitrose in Grocery Market by Using Strategic Essay

Strategic Analysis of Waitrose in Grocery Market by Using Strategic Management Model and Theory - Essay Example The U.K retail market seems to be on the maturity stage of its lifecycle, however, growth is still quite prominent. The market is on its verge to a 15% growth in the next 5 years (IGD, 2010). Economic dynamics such as rising interest rates and consumer prices, house prices as well job insecurity are only few of a plethora of factors affecting firms in this sector (IGD, 2010).The new government following the election in May, 2010 also seems to bear impact by way of its proposed contractionary fiscal and monetary policy which could mean tough times for the high end markets. Waitrose- the company The company has its roots in 1904 when it was founded by Waite, Rose and Taylor (Waitrose, 2011). It was acquired later by John Lewis (an established partnership); hence, it was not until 1955 that the first Waitrose supermarket was born (Waitrose, 2011). At present the company has a strong foothold in the European market with 243 stores in Wales, Scotland and England, employing more than 37,00 0 people (Waitrose, 2011). The company claims to offer value for money along with convenience shopping. It targets the affluent segments of the market and is a high end store and follows a differentiation strategy (Randall & Seth, 2011). Thus, the company offers high quality, high priced products (Randall & Seth, 2011). ... aitrose does not follow the lead of its competitors and, instead, has always reflected itself as a premium quality brand, focusing on product quality rather than price (Randall & Seth, 2011). Furthermore, the company, under the umbrella of the John Lewis group, has projected itself as a socially ethical and responsible entity by sponsoring events such as â€Å"Fair-trade Bananas† and â€Å"Bag for life† (Cohen, 2010). SWOT Analysis Strengths: The company was an industry first in introducing the Quick check, self-scanning technology in its stores which reflects upon its innovative strategy and focus on delivering superior customer value (Jones & John, 2011). Furthermore, the company works under the umbrella of the John Lewis group which has given it enormous advantage in terms of economies of scale and established links with suppliers. The company was amongst the first to develop its line of own brands; it houses over 16,000 brands under its own name (MarketWatch: Global Round-up, 2009). Furthermore, the company won another industry first by winning the award for Organic food. Weaknesses: The company’s own label brands constitute almost 55% of its product mix. Thus, it is highly dependent on its own brands and ought to stock other brands (Jones & John, 2011). Furthermore, the company’s expansion opportunities are limited due to present coverage of its retail outlets. The company also has potential unfilled gaps in the market that it isn’t catering to and is positioned quite farther away from its 4 main competitors including Tesco, ASDA, Morrison’s and Sainsbury’s as well as Marks & Spencer. It has been positioned as a premium end brand and is perceived as too expensive compared to its rivals which is one of the major factors behind its low market share (3%). The