To: Loblaw's executives
Subject: Entry of wall mart on the Canadian market
Meals retailing is a huge industry, you from Loblaw's certainly understand that, but different competitors realize that too. Wal-Mart is among those competitors who understand that too. The food sector is the form of industry where one can be huge at 1 point and will suddenly disappear under the pressure of competition. Wal-Mart offers entered the Canadian market a couple of years back and I want to thank you for the chance to inform you about how precisely they work and what upcoming possible threads draught beer bring along. I will also let you know about their weaknesses, where Loblaw's can take good thing about.
Loblaw's sells the ideal food quality products and provide the best assistance for their customers. Wal-Mart nevertheless , formerly called large discount department shop, wants and tries to change.
Possible threats are growing competition on retail store size, area, innovation, client loyalty, the overall image, the offer of products(different products) and off course the amount paid of products. The foodstuff industry can be crowded and moving, yet Wal-Mart has the lowest expense and the most affordable prices. Wal-Mart put a lot of effort to make sure they shall be the most ground breaking chain, but also in that in conjunction with wanting to end up being the cheapest is a difficult combo. They have managed to do so during the last yers. Essential to notice is that their emphasis is not only about food nevertheless also the rest of the products that they sell like consumer electronics and home furniture for example. Which could been since negative yet also positive because they are going to attract an array of customers with that.
An advantage intended for Wal-Mart is that the bargaining power of suppliers can be weak. Wal-Mart is probably their very own biggest buyer. And therefore they are going to do anything to keep them pleased. Also the recent problems has made the bargaining power of buyers weakened. There is/was a big...