Strategy_and_Competitive_Advantage_Research_on_Supermarket_Retailing_in_UK

Strategy_and_Competitive_Advantage_Research_on_Supermarket_Retailing_in_ UK

Chapter 1 Introduction

1 .1 Background

UK supermarket industry has changed its characteristics over the last twenty years and has emerged as a distinctive system of retailing in the UK . In the past , the UK supermarkets are characterised with smaller product ranges and restricted product differentiation within the product categories . Moreover , there has been increased development in technologies and the increase of competition . Most of the supermarkets put their focus on the differentiation in products and price . In another words , higher levels of convenience , large number of

choices in terms of price and quality and difference in product ranges are the central focus of the supermarkets in the UK . In fact , this is the marketing strategy adopted by the stores to keep in level with the competition from other discount retailers . The completed supply chain is another salient feature of the UK supermarket industry . Competitive food retail environment , food safety and rationalization of supply base act as the key drivers for closer integration of supply chain in the UK supermarket industry . In this context , this section presents an analytical review of the winning strategy and competitive advantage of the UK supermarket retailing industry

1 .2 UK Supermarket Industry - an Overview

During the progress of the 20th century , integrated distributor-retailers replaced the market dominance by food distributors and wholesalers . A simple form of supermarket model is characterized by separate shelf areas for produce , meat , bread and other grocery items stocked and supplied less than one roof through self-servicing . Discount...