Migros Essay Example | Topics and Well Written Essays - 2000 words

Migros - Essay ExampleThe current commercialise penetration demonstrates 40% of households shop exclusively at Migros for regimen and 92% of households shop once per week. give recent developments, the competition appears poised to move into Migros territory and Migros management plans to anticipate the encroachment with appropriate strategies. This idea responds to that potential encroachment with strategies and recommendations for action, and a plan for implementation. First, the situation is defined. COMPETITIVE SITUATION Migros is currently the natural covering promoter in Switzerland. Coop is the endorsement broadst retailer. With fewer retail stores, Migros earned 25% market share of food and 18% overall consumer goods. Coop, with twice as many outlets, enjoys a 15% market share. Three large international companies plan intrusions into the Swiss market. Carrefour, from France, atomic number 63s largest retailer, currently operates 12 supermarket locations in Switzerland and envisions several to a greater extent in the near term. Two German firms, Aldi and Lidl, expect to attempt to gain entry into the Swiss market. ratified and regulatory issues confound foreign entry however, the European Union agreements may lead to loosening of those restrictions. The terzetto new competitors compete on price utilizing the low service, big box retail concept. As Europes largest retailer and help in the world to Wal-Mart, Carrefour has the financial strength and management systems to compete. Aldi and Lidl date the 8% discounters share of the market incredibly appetizing compared with Germanys 40% share. That gap looks exploitable from their positions. Traditionally, and certainly among the top retailers now, qualitative competition has been the standard. New regulations and new competitors, independently or combined, may lead to price peeled and poorer agricultural standards in the food supply. Migros must prepare to respond. Migros management has identifie d three strategies in resolution to the challenge these competitors present. First, improve operational efficiency, logistics, purchasing or organizational structure and pass the cost savings to the buyer. Second, expand the budget line of vertically integrated products and develop cost leadership. Third, compete on superior lines and increase sales of ethical/environmental products. In response to these strategies, this report offers the following logic. The third dodging is sound, but not responsive to the threat of discounters. The investment required to continue growing the engagement and premium lines is insignificant compared to returns so far. Migros not only owns the Swiss premium market among large retailers, these products are a growing source of export business. Stay the course on premium products seems like the best advice. The second strategy involves expanding the budget lines, providing broader choices of products at budget pricing bears investigation, and respond s to the price cutting competitors. The first strategy is lineament business thinking at all times can we be more efficient? Migros surpasses the otherwise competitors for efficiency in management and operations now. It is unlikely significant gains would come of an operational audit. This chart demonstrates the point. Migros is second only to Coop in gross profit as a percentage of gross sales. Migros