Groceries in UK case study

Document Type:Essay

Subject Area:Business

Document 1

Tesco and Morrisons use the strategy of a vastly reduced based when compared to other groups of supermarkets and hence creating a sustainable price advantage. Relying on the online supply of food for major groceries should be reduced and opt for home delivery because it attracts customers and enhances effective interaction. Q1 Tesco had been using the issues of overstocking and creating a lot of space which is very essential for the bottom line operation of the organization (Turner et al. , 2017, pp 960). Morrisons currently had been using labeled products as opposed to a long time ago when it was using non-labeled products. This aspect had been necessary as it encourages the organizations to save time and money in their operations. The idea of limited stock keeping units had also been effective in these organizations enabling them to increase the number of items at their store.

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Marks and Spenser currently are using the strategy is refusing customers to order food online and opt for the home delivery methods (Macdonald, 2013, p 55). Selling of foods online has been found to delay the supply of food making the operation to operate in small basket sizes. Most of the clothing stores in the UK are likely to be shut down making Spenser and Marks to focus on improving the food industry. The organizations as well have been able to target the stacking of weekly shoppers using a very small range but the quality is high and hence making them more attractive than the rest. In addition to these, the organization is not used to developing the copycat versions and further they have an ability to reach more audience and thus they stay ahead of the others.

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It is also clear that the organizations have been eliminating all things that are not essential to the customers and even selling to them at the lowest prices. This strategy had been critical in making customers to prefer the services of Aldi and Lidl’s hence increasing their success and giving them the best competitive advantage (Wortmann, 2014, pp 440). The organizations have also been able to increase capacity utilization based on the fact that their prices are lower and this had been the reason behind their revenue per meter square being very high. Morrisons and Tesco ought to pay a lot of attention to efficiency so that they could be able to acquire more funds while operating in their activities. It is also necessary that Morrisons could reduce the number of stores so that it can reduce the kind of loss in funds it has been encountering in the recent days.

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M&S should ensure that the food stores are more than the clothing stores. These organizations have been operating majorly on the food stores and have not shut down. They should as well emphasize home delivery of foods as opposed to online because customers prefer direct interaction so that they could express their views. Asda and Sainsbury have developed a merger to give customers more of their needs in the current days. They ensure that customers could be able to access products online as well as developing an adaptable business for the future. References Hackney, Ray, Kevin Grant, and Grete Birtwistle. (2016): "The UK grocery business: towards a sustainable model for virtual markets. " International Journal of Retail & Distribution Management 34. (2016): "The UK grocery business: towards a sustainable model for virtual markets.

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