Loblaw Article

Loblaw Companies Limited: Preparing for Wal-Mart Supercenters Condition Analysis

5. SWOT Evaluation

Strengths| Loblaw| 2. One-stop searching destination with several solutions, which are meals, kitchen products, furniture, house supplies, hardware, electronics, office supplies, clothes, pharmaceuticals, toys, photo shop, dry purifying, a lender, medical medical center, women's-only health and fitness center, gas station (some stores) * Good private product labels, President's Choice brands 2. Market head in the superstore industry with 34. 9% * Bigger number of retailers in Canada with 670 shops when compared with Wal-Mart Supercenters| | Wal-Mart| 2. Good i . t system, that using Electronic Data Interchange (EDI) – vendors may be assure that are getting the certain amount of purchases and better payment conditions * Division center are located close to the retailers. * Large rate turnover of SKUs * Monetary success by 2002 – 2006| Weaknesses| Loblaw| * Has excess inventory 5. Poor supply chain insurance plan * A lot of empty shelves * Brand image diminishes because of certainly not doing fresh foods. * Pricey interior design to build and operate * Lacking smart promotion| | Wal-Mart| * Smaller sized number of stores in Canada using more than 270 shops when compared with Loblaw Companies Limited| Opportunities| * Customers lead busy and budget-conscious lives| Threats| 5. Suppliers would not delivery promptly

* Monetary Analysis

In millions of $| Loblaw Companies Limited| Wal-Mart Supercenters| Year| 2005| 2005

Net Sales| 27, 627| 1, 860

Key Issue

Should Loblaw executive team make any kind of strategic difference in order to protect market head position of supermarket sector in Canada? If perhaps change, just how? Current Approach

Loblaw Corporations Limited, which can be the market head in the superstore industry, is definitely using the pre-emptive defense technique to improve the business weaknesses including supply chain policy that Loblaw experienced announced the punishment to get the suppliers, who applied as " no-shows” and who were producing any faults in purchase. Alternatives

There are three alternatives proposed intended for Loblaw Firms Limited as followed: 1 ) Maintaining the Pre-emptive Security strategy with improving the inventory supervision and supply sequence management a. Using Electric Data Interchange (EDI) system

b. Preparing the time plan for shipping goods from suppliers Advantages| Disadvantages

5. Vendors know our inventory that can dispatch products punctually * Being aware of expired particular date of meals * Lowering the " no-shows” deliveries| * Pricey investment

installment payments on your Implementing the Mobile Protection strategy along with maintaining the Pre-emptive Defense approach c. Diversifying related business, which is restaurant

d. Enhancing the inventory management by utilizing EDI program Advantages| Drawbacks

* Rendering more services * Knowing the expired date of meals * Raising revenue| * High cost of investment

three or more. Implementing the positioning Defense approach by doing the strategic cha?non with the Wal-Mart in order to talk about the information technology system and supply chain managing e. Sharing information technology system, EDI

farrenheit. Sharing the transportations

g. Sharing both equally food and non-food

Advantages| Disadvantages

* Elevating rate of inventory proceeds * The actual expired date of meals * Low priced of expense * Suppliers know our stock that may ship products on time 2. Decreasing the " no-shows” deliveries| 5. Losing several customers to Wal-Mart


Alternative three or more: Implementing the positioning Defense technique by doing the strategic cha?non with the Wal-Mart in order to reveal the information technology system and supply chain administration Recommendations

The Loblaw Companies Limited can use the useful resource of information technology system, which is Electronic Data Interchange make up the Wal-Mart to be able...

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