Competitive Environment of Iceland Foods Ltd

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