Strategic Analysis of Wm Morrison: Internal and External Environment, Competitive Forces, and Value Net Model

Strategy Enterprise and
Innovation
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Table of Contents
Introduction ....................................................................................................................................3
Analysis of internal environment....................................................................................................3
Value chain Analysis..............................................................................................................5
Analysis of external environment....................................................................................................6
Analysis of competitive forces within the industry.........................................................................8
Strength and limitation of porter's five forces........................................................................9
Game Theory: Value Net Model...................................................................................................10
Conclusion ....................................................................................................................................11
References.....................................................................................................................................12
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Introduction
Strategic analysis of the company is the process that include the research of a business's
environment within which they operate. With the help of company's internal and external
environmental for developed the understanding of recognition of the future opportunities of
growth (Chaika, 2021). To complete this report the chosen organisation is Wm Morrison, a
supermarket company. It is the fourth largest chain of supermarkets in United Kingdom and its
headquartered is in Bradford, UK. At present company is dealing in food and drinks, clothing,
petrol, books and many more retailing service products or services to their customers. This
report highlight the analysis of internal resources and capabilities of the chosen company.
Furthermore, key drivers of external environment and its impact on the company will be
analysed in the report. In last, evaluation of porter's five forces and its impact on competitive
forces that make an impact on the company's activity will be analysed.
Analysis of internal environment
To analyse internal environment of the company, SWOT and VRIO are two framework
that helps in internal resources and capabilities to gain the competitive advantages. SWOT help
Morrison to strengthen its management framework that enable the brand to make benchmark and
compared with the competitors (Morrisons SWOT Analysis, 2021).
SWOT Analysis
 Morrison has built their expertise strategies for entering into the new market that make
them successful at most of times.
 Morrison has the strong cash flow into their operations which provide a significant
resources in company to expand the new projects.
 Over the years, company has built the reliable distribution channel that create the
majority in potential markets (Khrystyn and et.al., 2021).
Weakness:
 Comparing to the other companies, Morrison has the higher attrition rate this leads to
spend more within the company by comparing to its competitors on the training and
development sessions.
 The structure of Morrison, is not very good, so it leads to higher inventory management
in the both in-house and in channels.
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Opportunities:
 The new market development will lead to the competitors for the growth in advantages to
make enable Morrison’s for increasing competitiveness to the other competitors.
 New online channels help the company to expand their customer's base and gain more
opportunities.
 New and trending customers can develop the new market for Morrison’s that provide a
great opportunities for organisation and build a new customer segment (Li, 2021).
Threat:
 New technologies used by the competitors could be lead to serious threat for the
company as a long or medium term future.
 Rising pay level can lead the serious issue which are used to make pressure to gain
profitability of Morrison’s.
 In last, intense competition that put downward on profitability of the company and
decline the sales (Luo and Witt, 2021).
VRIO Framework
VRIO framework is strategic analysis that helps in designed the tools uncover and
protect the resources that make the long term competitive advantage. It is an acronym of
valuable, rarity, limitability and organization to evaluate the criteria of an organisation's
resources and different capabilities (The Morrison Company, VRIO, 2019.).
Resources Value Rare Imitable Organisation Competitive
advantage
Brand Image Yes Yes Yes Yes Long term
competitive
advantage
Technology
advancement
Yes Yes Yes Unused
competitive
advantage
Customer's
network and
Yes Yes Competitive
equality
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