Guide to Case Analysis

Question: Discuss about the Guide to Case Analysis. Answer: SWOT Analysis Strengths: Loblaws has a strong brand name, the position of the company in the market is too good, and the number of sales is growing continually. It offers about 7000 products with private levels (Presidents Choice (PC)). The program PC Plus helped and allowed the customers in the collection and redemption of points, which help them, benefit from the low cost and further creation of the brand awareness. The introduction of PC MasterCard offered products with high quality and retaining customers through the loyalty program i.e. PC Plus. The company has a large number of fixed assets and a very low amount of debts, which shows a major strength in the position of the company. The Company has a wide coverage across Canada, which has helped them in involvement with communities and in taking initiatives for social responsibilities (Karakowsky and Guriel). Weaknesses: The large investment in the technology i.e. in the IT systems and infrastructure has resulted in unanticipated losses, as the realization is yet to come. The management is weak and the structure of the corporate is too complicated. There has been an incorporation of systems containing self-checkout and cell phones for attaining competitive advantages but the constraints in logistics have created a huge gap in the strategic plan (Castaer et al.). Opportunities: Loblaws has become a low price leader due to the growth in the discount segment. There are huge openings for the exploitations of the new technologies emerging in the market, which is a huge opportunity for the company. The large resources of Finance have a promising future. The specialty food products have increased and offered by the retailers, which has created an opening for the company. Furthermore, the acquisition of Pharmacy and Clothing services is a major opportunity for the company ("Loblaw Companies Limited 2016 Annual Report"). Threats: The Goodwill has dropped continuously in terms of value and the intense competition from Wal-Mart, Costco and Metro has become a major threat for Loblaws. The Union problems and other political and legal concerns are a major risk towards the company and the Canadian market is presently attracting the foreign investors, which is the most hazardous part for the company. Competitive Advantages The company Loblaws can identify their competitive advantages as per the integral factors of success and by developing the framework with respect to their competitors. The company uses the valuable, rare, costly to imitate, organized to capture value approach towards identification of their advantages from the competitive forces present in the market. The above analysis can help in the maintenance of their brand and reputation with the strong position, which they hold in the market of the grocery retail industry (Abdulla et al.). The major competitive advantages are as follows: The major analysis done states the fact that the company has a strong and recognized brand name, which will maintain their position in the market. They have a customer base, which is devoted, and the same is due to the providing of the products of superior quality. Furthermore, they have taken efforts in maintaining the relation with the society through the corporate social responsibility. The restructuring of the stores and transformations is attracting many customers and keeping apart the competitive forces through Brand differentiation. The Company has been practicing skills, which are superior in nature and related to the management of relationships. Thus, the goodwill is maintained and market position restored from time to time. The Company has a strong human resource department and the efforts in training and recruitment policies have helped in attaining value for the organization. The Company has taken steps in making the products more environmentally friendly to help the society and company as a whole. The risky species and the fish products, which were non-sustainable in nature, were ceased for selling and removed from the stores and so the company was successful in taking steps in removing the unfriendliness in the environment (Worley and Mirvis). A store in Scarborough, Ontario was recognized for the removal of the carbon footprints thus naming the same as the store of environmental flagship. A store in Nova Scotia uses the wind turbines for the generation of electricity, which means they are using the natural resources in an efficient and effective manner (Trites and Levesque). These initiatives help in the company gaining an advantage in the market. Value Chain Analysis The company has been efficient and effective in the management of the activities i.e. both the primary and secondary activities which is necessary for the optimization of the productivity and their brand image. The company has continued to serve their market is the best manner possible by attaining the loyalty and trust of the customers. The closer look of the logistics, which are inbound in nature, explains and illustrates the fact that the Company has outstanding and admirable associations with their suppliers (Smith). The relationship is stronger because as the company has a large share and position in the market, the company while negotiation can guarantee the supply of goods in a reliable way. Loblaws has considered the management system regarding the supply chain procedures, of Manhattan. The platform has been helpful as the same is working for them and the company has continued to invest in the same system of management. The planning centers, which are four in number, allows for the processes, which are integrated and standardized in their approaches. The same is done while considering the logistics of an outbound nature. The growth of the loyalty program of the company and the responses of customers towards the transformation and restructuring of the designs of the stores has been one of the major integral focuses for the division of sales and marketing of the company. There have been some difficulties being faced by the company, which was discussed above in the weaknesses. The difficulty comprised of the achievement of the required and expected returns from the investment in technology developments and infrastructures. Hence, it will be better to outsource the part of the business as the company may reduce its gains and goodwill due to the incorporation of such weakness inside. The outsourcing will also allow the company to focus more on the strengths. Therefore, the overall scenario represents that the combination of the effective and efficient value chain has helped and assisted Loblaw for the deliverance of the powerful and excellent products and services towards the customers, which is thus a competitive advantage for the company. References Abdulla, Majd, et al. "The importance of quantifying food waste in Canada."Journal of Agriculture, Food Systems, and Community Development3.2 (2016): 137-151. Castaer Camps, Sandra, et al. "Generic brands and product differentiation strategies." (2013). HALLSWORTH, ALAN G., and KENG JONES. "The Planning Implications of New Retail."The Internationalisation of Retailing(2013): 148. Karakowsky, Len, and Natalie Guriel.The Context of Business: Understanding the Canadian Business Environment. 2015. "Loblaw Companies Limited 2016 Annual Report". https://www.annualreports.com. N.p., 2017. Web. 14 Mar. 2017. Smith, Courtney. "Prepared By: Courtney Smith January 30, 2015." (2015). Trites, Steve, Charles Gibney, and Bruno Lvesque. "Mobile payments and consumer protection in canada."2013, Research Division, Financial Consumer Agency of Canada(2013). Worley, Christopher G., and Philip H. Mirvis. "Studying networks and partnerships for sustainability: Lessons learned."Building networks and partnerships. Emerald Group Publishing Limited, 2013. 261-291.