Final Analysis on John Lewis Partnership

| -Easy for JLP customers to ‘switch’-This ability to ‘switch’ for consumers is mitigated by JLPs unique approach to their customers – by providing real service, and service-incentives within employees, they create a shopping experience that cannot simply be replicated in any other store-CULTURE creation within their stores makes switching (with the same level of service) very difficult for consumers.-Relatively low share of retail market represents a real threat in terms of ‘weight’ in the market – threatens expansion-JLP has built more stores in past year, compared to any other year, despite limited capital – clear focus on

With the help of pilot project, they will reconstruct the Sydney flagship store. The organization will catch the profit at long term and get their customers back. The benefit will go up till 50% by 2019 and company will open 7 new retail stores by mid-2021.

Threat of New Entrant: As a result of the crisis going on at J.C. Penny, many new retailers’ stores have found their way to the market.

We found a gap within our marketplace proving there was a lack of quality ecommerce stores offering quality goods at competitive prices. Consumers are spending their money online with overseas stores to source the goods.

GLOBALISATION: Waitrose is expanding its business and suppliers through the world. It trades with more than 80 countries.

Omega is a successful company and one of the largest supermarket chains in the UK, employing a large number of staff in stores across the country. Although the industry has seen very little growth in recent years, Omega has successfully increased its market share through a policy of lowering prices (the company claims to have reduced prices by 7.5 per cent between 2004-2009) and improving customer service. It currently holds a dominant share of the UK market in its core business and is growing rapidly in related areas. The company plans to continue expanding in the UK, opening up new stores on brownfield sites in regeneration areas.

As the fastest growing supermarket chain in the past three years with an 8.7% growth rate between 2011 and 2012 & gross sales of £2.8 billion (JLP Interim Report 2012) Waitrose’s current strategy for rapid growth and store expansion has meant that the distribution network will require re-aligning to future capacities. Enhanced Logistical capabilities and efficiencies are required to manage the increased volume of stores across the UK network.

At Waitrose, they combine the convenience of a supermarket with the expertise and service of a specialist shop. Above all they take pride in the freshness and quality of their food and products. As you know, Waitrose is partnership with John Lewis which has been ranked first in the “Sunday times” the UK’s largest unquoted company by sales.

Tesco, UK’s largest supermarket is facing a stiff competition from discounters (Aldi) and to a certain extent from the high-end supermarkets (M&S) since the past few years. Tesco’s share value fell from 321p in December 2013 to 168.15p in December 2014. (Yahoo, 2015) To add to this depreciating market value and low profits, Tesco has been in the headlines for a myriad of scams. Such a situation calls for a strategy overhaul. The shortcomings in Tesco’s strategy to deal with the competition and the overall situation of the retail market has been analysed in this report. Before analysing the current situation and devising a plausible strategy to deal with the situation, we will have to assess the resources and capabilities of Tesco as these shape the strategy of the firm to fit the external environment and not the other way round. Some of the major strategic changes which need to be made by Tesco to fit itself better in the new retail market and cope with the competition have been discussed and highlighted in the final section of the report. In the words of Alastair Dryburgh “You can 't compete on price with someone who has systematically designed their business to be cheaper than you.” (Dryburgh, 2014) Tesco needs to cope and not compete, and this issue is highlighted in various contexts in the report.

| * Tesco launches its Organic range * Computers for Schools is launched * The first Tesco Metro store opens at Covent Garden, London * ‘Every Little Helps’ is launched

As Morrisons struggles to regain its control in the supermarket industry of England, the performance of Chief Executive, Dalton Philips, has been under tremendous scrutiny. While Morrisons is a publicly traded entity, listed on the London Stock Exchange, as of February of 2014, ambitions have emerged on behalf of the founding

The most recent IGD research from a research and charity organization, about the grocery market in the UK shows that the market is experiencing market growth (currently at 1.7% Growth rate) . The retail market in the UK plays a significant role in the country. In 2014, it provided £177.5 billion to UK economic output in (11% of the aggregate output). Even though the UK was in a financial crisis in 2008 that led to lower consumption, high unemployment, unstable prices and a decrease in the annual economic growth rate over the last decade the market has grown from £124.6 billion to £177.5 billion. The major channels of this market are Hypermarkets and Superstores, large retailors offering a wide range of groceries and additional non-food items.

2. mySupermarket Limited (2013) The List of Yogurt in Waitrose [online] available from [24 November 2013]

We can see examples of Tesco’s opportunistic market entry whereby it fruitfully analyses and executes market opportunity as in the case of its Central Europe and Asian expansion. In central Europe and east Asia there was rapid liberalization of previous restrictions on retail and in east Asia Tesco sought opportunity in buying up cash strapped retailers which were the casualties of the Asian economic crisis of 1997/98.

As a PR assistant at Tesco you have been asked to give a speech to business students at the London School of Economics. In your speech you account for some of Tesco's current problems and comment on the company's efforts to solve them taking the changing consumer behavior into consideration.