Reed Supermarkets have managed to achieve & maintain their “well reputed – well known” standard through emphasizing their market foot prints of the “Differentiation Advantage”. Well known for their attraction to high end shoppers with special 18% higher median income customers than the market household average income.
Whereby, they influenced their differentiation advantage throughout the supermarket retail industry by adhering to their high products’ quality, emphasis on specialty items as organic food and private label selection of high end products, endorsing attractively elegant stores & displays & unique attentive customer care through long hours, short check out times and shuttle runners (no tips).
What are Reed’s Startegic options of positioning for 2011 & beyond , to go forward?
Which of these strategies do you support & Why? There seems to be two main guidelines of strategic positioning that the food retail industry is focused upon. Firstly; the “Cost Advantage”, which is the main concern of both first & second generation of competitive rivalry in the Food Industry Retailing. Secondly; the “Differentiation Advantage”, which seems to be the main concern of Reed Supermarkets, for which Reeds’ have been uniquely well known for.
The Essay on The food industry
The food industry and how food is processed has changed dramatically over the past fifty plus years. The food industry is longer run by farmers. It is now operated more like an industry in a factory setting. Foods like chicken and beef are now produced in massive quantities from enormous assembly lines. The popularity of fast food brought the factory system into the food processing industry. ...
But, which has also been the determinable main focus of smaller newer evolving 2nd generation competitors, as the German operated limited selection small Aldi stores. Now …. That we have clearly exhibited the Columbus Market, the Competitors and their different Strategic Positioning Advantages; Let us also emphasize an indirect finding that may be determined from the meticulous studying of
Food Retail Industrial Market in Columbus in respect to the interaction of the Market Powers & the well-doing of the intensely Competing Rivals. Thus; keeping in mind that it is only fair to measure a retailer’s efficiency through comparing it with other rivals in its same category, we could not avoid appraising the German efficient operation model of the Aldi Limited Selection Stores (and to a lesser extent the Trader Joe’s stores).
They in comparison to their same category, Dollar Limited Selection Stores, have managed to operate on a full proof efficient, low cost model and although having the same size & limited products selection, they have managed to achieve highest revenue per square feet & even achieving a higher cut of the market share (3-5 %, where the Dollar Stores Niche of market share was 3 % if not less).
Even more, is that market studies proved that an Aldi Limited Store of about 15 000 square feet can generate as much sales revenue as a 40 000 large supermarket retailer. Therefore; To conclude from our understanding of these Market Power Interactions & Strategic Positioning Advantages: A certain Strategic Position in the Food Retail Market, on its own stands less power of “Competing Advantage”, than having a Main Strategic Position/Focus collaborated with the other as a “Subsidiary Competing Advantage”
To our inevitably limited knowledge of correct decision taking, we think that the most correct decision to make if we were in Collin’s VP Marketing Status, is to “Go forward” with our already well known, established “Differentiation Strategic Advantage” while reinforcing it with a “New Competitive Edge of Cost Strategic Advantage” . That is we are in favor of the “Dollar Special Campaign”.
The Essay on Competitive Advantage Carr Business Strategic
Electricity, the telephone, the steam engine, the telegraph, the railroad and... IT? In his HBR article, "IT Doesn't Matter," Nicholas Carr has stirred up quite a bit of controversy around IT's role as strategic business differentiator. He examines the evolution of IT and argues that it follows a pattern very similar to that of earlier technologies like railroads and electricity. At the beginning ...
Lastly; to wrap this up, we will end this by our personal “2011 and beyond” recommendations… or we would like to call them “remedies” to the present “Dollar Special Campaign” & other “Cost Advantage Collaborative Reinforcements” to our “Actual Differentiation Advantage”. And they are as follows: -Emphasize the need to maintain and increase the product diversity of our dollar special campaigns & promotion sales. -Reduce the dramatic price discounts; our targeted customer’s range is not that low
