Kasus Bab 6 - Loblaw Companies Limited
Kasus Bab 6 - Loblaw Companies Limited
Kasus Bab 6 - Loblaw Companies Limited
We have identified as alarming weak, its problems with distribution systems and
tolerated poor management. A retailed stores distribution system and
management are key success factors.
The major threat is that competitors are growing stronger while Loblaws
consumer satisfaction is decreasing due to the company poor performance.
Loblaws best opportunity is to capitalize its experience on food market. Loblaws
commitments to simplify, innovate, and grow under the application of a new
business plan is the best opportunity that the company has to be a front-runner
again.
8. Wal-Mart market entry :
Wal-Mart poses a serious threat to other grocers
Economies of scale and scope
Everyday low pricing
Supplier influence
State-ofart distribution system
Wal-Mart built a super-centers and rapid expansion forthcoming.
In 2007 groceries accounted for 31% of total sales
9. February 2007, 100-day review : We are not delivering the right value for money and we
are not getting the credit with the customer for investments that we do make, said
chairman Galen Weston Jr.Proposed actions by executing and analysts:
Clear out excess inventory and improve stocking
Strong offering of private labels, de-emphasize national brands and eliminate
redundant sizes
Reduce space allocated to general merchandise. Devote more are to food or
reduce the size of stores
Lower prices for selected items to retain its customers
Improved differentiation between the smaller conventional Loblaw supermarkets
and the larger discount outlets
Reconstruction of the famous Maple leaf Gardens in downtown Toronto
10. Summary Loblaw has begun to reorganize its business strategy however it is evident
that change is imminent.
11. Discussion Questions
What are Loblaws challenges?
What issues should Loblaws executives be most concerned about? Why?
What specific actions should Loblaw take to improve its competitiveness against
Wal-Mart?