Competitive Environment of Iceland Foods Ltd

This article discusses the competitive environment of Iceland Foods Ltd and analyzes the factors that affect its business. It includes a Porter's Five Forces analysis and a value chain analysis.

Managing Information
and Technology

Table of Contents
INTRODUCTION...........................................................................................................................3
Competitive environment of organization by applying different tools......................................4
Porters value chain analysis........................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Iceland Foods Ltd is the British supermarket chain who sales food related products, they
are selling frozen foods, which included vegetables, meals etc. not only frozen foods they are
selling but they also sell non- frozen Grocery products like meat, goods, dairy products etc. they
are having good reputation in the UK market and more than 2 percent shares are under this
company. This is privately controlled and more than 950 location they are having in the whole
United Kingdom. Their stores are well maintained and clean which attracts people to come and
buy product from them. Iceland Foods also have good reputation in the market and their food
products are fresh and healthy. They do not use any chemical in their vegetable to make them
fresh because company believes that chemicals make quality of the food product, so they do not
use any of the chemicals to make their food fresh. They are also having online website where
they take order of the food and non frozen grocery products and delivery to the customers house
which makes easy for the customers to buy their food product without going to the market.
Online website makes their company more effective in the market and help them so increase
their growth.
Background of the Iceland Foods
Iceland Foods was started in the 1970 when the founder of this company Malcolm
Walker open their first stores in the Leg store and this companies name was suggested by the
wife of the Malcolm Walker. Walker and his one more friend invest in the shop as rent butt they
were also doing their job. They were terminated from their job when their boss come to know
that they are doing side business. After the termination they started giving their full time on their
shop. 7 years latter they open new shop in Manchester, and they were selling their own label
packed food to the people. In just a one year they were having 28 new stores of Iceland Foods.
In 1983, they take decision to open 18 more stores of Bristol based st. Chtherine's Freezer center
and after one year their business become popular among public. In 2018 BBC notice that
Iceland Foods company is selling milk and met products out of the prize from 14 hours. A
former manager of this company inform them that deliveries to Iceland were removed from the
lorry and left outside so the food can come into their normal temperature an undercover reporter
was responsible for the unloading.
Iceland Foods products and services

Iceland Foods company is emphasis on the sale of the frozen foods, including prepared
meals and vegetables. Iceland Foods also deal with the products like meat, dry goods, non-
frozen Grocery items. They prov8de fresh frozen and Non – Frozen food to the people which is
healthy for the people, and they also follow all the satisfy instructions related to the food
products so their customers can get healthy food without using any chemical.
Competitive environment of organization by applying different tools
There are two some tool which shows the factors which affect the business of the Iceland
supermarket company. It will help to look for the factors which influence on the companies
business (Song, Sun and Jin., 2017). Porter's five force is also a tool which was developed by the
Michael Porter. This helps to analysis the competitive environment for the Iceland supermarket
company, so they can take competitive advantages and show their presence in the market.
Porter's Five Forces Analysis of Landsbankinn HF
Thereat of new market players
Capital requirement is very high for the new entrants in the industry where Iceland
Foods company is operating their business. This is making difficulties for the new entrants to set
up their business in this industry (Maity and Ganguly., 2019). New entrants will also have to
follow the new technological trends in their business which is costlier than the other business
have in their workplace. Capital expenditure is also high because of the high research and
development cost. All these factories create threat for the new entrants which means threat of
new entrants in very law. finical resources of this Iceland Foods company is high and company
company also using New technology in the workplace which enable their customers to take
better shoppin g eperiance experience. It means new entrnet will need stong fincial resourcess
and they will aslo need to impliment trnding technology in their supermarket to show their
prsence in retailer industry(Abdolshah, Moghimi and Khatibi., 2018). New business can suffer
from the losses because companies like Iceland Foods have strong hold in the UK so people buy
their regular food products like meat, vegetables from Iceland Foods supermarket so if will not
easy for the companies to attract customers in their stores which will lead them to looses
Threat of substitute product
There are very less substitutes available for the product and services which are produced
in the retailer industry in which Iceland Foods company is operating their business. There are
very few substitutes are available for Iceland Foods company which creates very law profit for

this company which means they can make very less profit from the substitute, Because of very
few substitutes available are of high quality but are way more expensive. Comparatively, firms
producing within the industry in which Iceland Foods company operates sell at a lower price
than substitutes, with adequate quality. It means the buyer of the product and services are less
likely to switch to substitute product. Iceland Foods company show provide the quality food
product to the customers which is healthy and fresh for the customers which means quality can
attract the customers otherwise food items are same. They maintain quality through freezing their
vegetables, and they do not use for the long time same products. They are also having online
website which increase their sales for Iceland Foods company. They are having promotional
techniques through that they try to show their product quality otherwise there are very law
substitute available.
Bargaining power of buyer
There are many Retailers are operating business in the UK who deals with the Food
products. which means buyers have options to choose stores according them and local people
and shops also sell food products at their shops. It means buyers have control over the prices, and
they have to bargain in the prices. It is important for the Iceland Foods company to make good
relationship[ with the customers, so they can gain customer loyalty and to earn profit
(Mehjabeen., 2018). They also have to sell their products after the bargaining because customers
can buy from the other people who are selling food product which makes them decrease their
prices or give customers discount but Iceland Foods company have one advantage of their
online shopping site where there is no bargaining. Customers have to pay price which is return
on the food product which is advantages or the Iceland Foods company. Customers have to pay
price which is given on their website, and they cannot bargain with the delivery boy of the
company because they are just for the food delivery. They are not having any other rights to
bargain with the people. Conclusion is that buyers have contol on the pricess over the offline
stores but on over the online website of Iceland Foods company
Rivalry Among Existing firms
Competition in the retail sector is very high but there are very fewer competitors where
Iceland Foods company is operating their business, mostly they get competition from the local
vegetable and meet and milk stores. . It means there is law competition, and they can easily make
new customers in Iceland and competition is totally depended on the quality of the product.

(Akter., 2019). Very few competitors have large capital shares , most of the shares are covered
by the Iceland Foods company which, and they are using advance technology in the workplace
which means they have very law forces from the competitors, and they are also having
competitive advantages. Their products are store put in the freezer which keep their quality
maintain, and they set the temperature according to the capacity of the food. They do not use any
of the chemicals to make their food fresh. They are also having online website where they take
order of the food and non frozen grocery products and delivery to the customers house which
makes easy for the customers to buy their food product without going to the market. This is
providing them competitive advantages in the market, and they are able to show their presence in
the market with the high quality of the product.
Bargaining power of supplier
The number of supplier in the retailer industry is more where Iceland supermarket
company is operating their business, which means suppliers of this company have very less
control over the prices and this makes bargaining power of the suppliers a weak force. But
prices of the food products fluctuates because of economic conditions of the United Kingdom
specially vegetable prices which increase and decrease with the time but if they Iceland
supermarket company have good relationship with the suppliers than they can get their products
in less prices, so they can add so0me value and make profitability bu selling food products. This
will help them to gain competitive advantages, and they can show their presence in the market
and give competition to the other stores and retailers who deal with the food product.
Porters value chain analysis
Porters value chains is highly popular in the business world as the Iceland supermarket
company is facing the leaderships changes in mote over going forwards as it must to a rigid part
of development along with providence equal level of importance to respective activities. The
development of an effective value chains analysis have the clears level of requirements in order
to have the realization s of all fractiousness according to respective level of roll in
descriptiveness product or sieves.
2.1 Primary Activities
The primary value chains activities of Iceland supermarket company have the directs
level of involved which is producing along with selling the products as to the targets market
along with development of an efficient customer. This is with regard to the proper analysis

which is relation of the primary value chains activities which have proper sense of
improvisational in terms of performances of Iceland supermarket company.
2.2.1 In bound logistics
It is important to have the proper level of development on strong relationships with suppliers as
to have the significant sense of report which is necessary unis the receiving, stopping and
distributions the significant product. In this company without having the proper analysis of the in
bound logistics, Iceland supermarket company can have the serious level of issues in facing
challenges with regard to various developmental phases. To have the proper level of analysis of
the inbound logistics have major level of requirements of the company to pays major focus on he
each and every aspects of the transformation form the raw material into the finished products. So
of the respective example of inbound logistic is terms of the retentiveness the raw material by
storing the inputs along with interstellar distributions the raw material and the compartments to
have starts over respective productiveness.
2.1.2 Operations
The important of analysis the operational activists have the raises the issues of the significance
sense of raw software have the arrival, the company is ready to have the significant level of
processiengs into the end product as along with launching it into market. Some the examples
can be such as the assembling and testings the customer software in more prominent way. The
proper maintenance and impairment of equipment also have significant following of this
category. These section have inclusion of both manufacturing a series operations as it is
considered as important part in improvisation the productivity. This is helpful in improving the
efficiency along the competitive advantages which will be helps for Iceland supermarket
company to have achievement of the consistence s economics growth along with increasing the
level of profitability which is set as the powerful basis of the competitive advantages.
2.1.3 outbound logistics
This have the inclusions of the activities which have the clearly delivering of product to the
respective customer by passing the way of differential immediateness. In this about the proper
way for material handling along with warehouse, order processionals and trendsetting in have
proper explosiveness of the comparative level of sources in order to have achievement of
significant business growth at perfect level.

This the management of outbound logistic have the proper level of timely management
for optimal cost along with product deliveryman to have minimum level of negativism impacts in
terms for quality of business efficient along with maximization of the stratification of customers
which have increase in different business opportunities. There should be specific importance to
the outbound activities of values chains as its have the various banking products which have
been offended to customers and requirement quick delivery to end customer.
2.1.4 marketing and sales
This will have the proper highlighting if the benefits and differentiated points which is offering
products to have the proper level of persuasion to customers as compare to respective
competitors. Only more way of offing high quality of products at more level of considerable cost
without having creation of distinctive feature will have the failure in creativeness efficient
values. So the Iceland supermarket company is about top have respective developmental in terms
of infrastructure and sales activities as they have reprehensible if the having repetitive level of
sales forces, advertising, promotional activities along withe producing and selection channels at
respective rates.
2.1.5 Services
The services palsy an important role in more way of developing the customer loyalty. The
modern customer have the considerateness over the post sale services which is important
considerations as the marketing and promotional activities. The power of negative e-WOM due
to poor support service cannot be undermined in the current technologically advanced era. This
should be properly analysis as to have proper supposition to activities to have proper level of
avoidance to the brand reputations along with efficient supporter activities.
2.2 Secondary activities
The support activities play an important role in coordinating and facilitating the primary value
chain activities.
2.2.1 Firm infrastructure
This have the clear indentations of different range of business activities such as quality
management, legal matters along with handling the accounted, financial planning and strategic
management at significant way. This is will be helpful for Iceland supermarket company to have
appropriate control per the infrastructure activities in more potentiate way.
2.2.2 Human Resources Management

This is helpful in analysis the and different to the different HR aspects to have proper managing
org the personnel estrangement activities. This is helpfulness n having the persuasiveness to
increase motivations and commitment to skills management for workforce.
2.2.3 technology development
There is maximum level of respectability of value chains analysis in on technological
advertisement s this integration will be helpful in the productiveness, distributional, marketing
ans the humans resources activities in order to have the proper representational of technological
developmental importance. It can be divided into product and process technological development
activities. Some examples are- automation software, technology-supported customer service,
product design research and data analytics.
2.2.4 Procurement
This have clear defenestrations with the process which have the involvement of from equipment,
machinery, raw material, supplies, raw material and other items necessary for producing the
finished product. This will have the optimization of the inbound along with operational and
outbound value chains.
So the porter value chains analysis will be added as the more value to in more way creates as the
cost-effective efficiency set in terms of different differentiation basis to have process
optimization.
Information deployments
Information deployments is the considerations on the quality business procession along with
level of associated information interaction which is delivered in sense of technology. In today,
business the information technology have the clear significant in more fostering the business
innovation which have resulted in faster apps, improved level for data storage along with faster
processional and wider sense of business transformation distributions. This development have
made tries business to run in more efferent manner as it will create a clear sense in increasing
values along with enhancing quality ans boosting effective productivity.
IT has the basically more sophisticated uses of informational along with communication
technologies with have the intersessions of computer sciences which enables the retailers to
have the offering of better services to customer to have securing to reasonable and affable
manner along with sustainable competitive advantages over the other respective banks.

As composition to the significant level of clears understanding in terms of porter values chain
analysis and poster five forces. It has been analysis that the information nanotechnology have
clearly driven the currents banking areas along with providence the banking services in more
efficient manner to remain profitable in currents Iceland banking sector.
There are establishments of interrelationship with retail informativeness technology in
term of having the proper level of serving a positive level of relationships in order to have
greater level of efficiency. This also helpful in providential macro and micro level of economic
stability. As far for the analysis is the research in terms of contribution of informativeness
technology is more level of successful in with effective offering of products along with services.
This have the clear sense of enhancement the product as compress to the respective competitors.
There is proper level of involvement of appropriate corporate governance which is considered as
the prerequisite towards the management of financial systems along with indeed for economics
development in respects to any country development.
The implementation of information technology have the changes the perseverance of
business at the view the entire banking organization in strategic way. This is applicable to have
competitive environments networks to have organizational renewal which is necessary to have
investment interchanges which will be enterprise to have achievements its more strategic
objectives.
CONCLUSION
From the above report, it can be summaries that Technology in Iceland supermarket
company HF bank have Information technology which allow employees to manage bank data on
the computer and customers can operate their bank from their home. Iceland supermarket
company which creates very law profit for this company which means they can make very less
profit from the substitute. The company have identified that the long time taken to bring new
technology in their workplace as threat for Iceland supermarket company sometimes. Wealth
management is the combination of the specialized services and financial planning which includes
the estate planning, legal and tax advice and investment management services. On the basis of
application in terms for various model such as the internal and external analysis which is being
extended to have the prpters value chain and five forces analysis to have the information
nanotechnology have clearly driven the currents banking areas along with providence the

banking services in more efficient manner to remain profitable in currents Iceland banking
sector.
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