ABC Supermarket: Competitive Strategies and Outsourcing Analysis

This report provides an analysis of ABC Supermarket's business strategies, focusing on its competitive environment, market share, and outsourcing decisions. The report highlights the importance of innovation, smart recruitment, and strong customer relationships for improving business performance. It examines the benefits and drawbacks of outsourcing the IT department, emphasizing specialized services, cost-effectiveness, and the potential for reduced communication. The report also stresses the significance of cost reduction through efficient practices and minimizing waste to maintain a competitive edge. Overall, the report provides a comprehensive overview of the supermarket's challenges and opportunities within the competitive landscape, including strategies to maintain market share and enhance profitability.

abc supermarket

ABC Supermarket plays an important role in the supermarket of UK sector. Competition always
exists in the business. It is the responsibility of the management of supermarket to develop
efficient plan to save itself from the existing competition. Management of the ABC supermarket
performing its role in an efficient manner which makes them face the existing competition easily.
ABC supermarket should conduct an external analysis which is missing. With the help of
external analysis, it is able to measure the potential threats existing in the environment. This
enables the organization to make planning in advance so that it can easily tackle with the threat
factors.
Market share is the percentage which an organization holds in the total market for its products
and services. ABC supermarket can improve its business performance by focusing on innovation,
smart recruitment practices, and strengthening customer relationships (Lampe, 2016). If the
organization focus more on innovation, it can differentiate its products with the products of a
foreign rival. Innovation enhances the quality of the existing product with which one can easily
establish itself in the market and can survive for a long time. If innovation is there in the product
of ABC supermarket, it can create its brand image in the mind of existing customers, and they
become brand loyal. In the same way, customers are the base of any business. If they are not
satisfied, one cannot survive for a long time. So, the first priority for the organization should be
its customers. ABC supermarket should take various initiatives to build a long-term relationship
with its customers this will enhance the popularity of the organization. If customers are happy, it
can earn huge profit and able to expand itself in the growing markets.
Profit level can be enhanced through cutting down the manufacturing cost. It can be cut though
minimize the wastage of products. This helps the ABC supermarket in utilizing the available
product in an efficient manner. This is ultimately cut down the cost of products through which it

can efficiently introduce itself in the competitive market. The effective cost of the product
enables the supermarket to be the leader of the market and can easily earn a high share of the
market. The supermarket can protect its market share by cutting its costs and improving its
performance. The high quality of products enables the supermarket to be the leader which
facilitate the high amount of market shares.
Outsourcing is known as an efficient practice through which the organizations able to bring
down its cost (Willcocks, 2013) . Outsourcing IT department brings following benefits and
losses for the ABC supermarket:
Pros Cons
1. Outsourcing IT department brings
specialized services for ABC
supermarket through which it can gain
a competitive advantage in the market
(Hirschheim, 2013).
2. Reduce work burden and ABC market
can focus more on penetrating another
market.
3. The efficient mean of enhancing cost
effectiveness.
4. Outsourcing IT minimize removes
direct communication between the
ABC supermarket and client.
5. Limited communication rises problem
in developing relationship with
potential customers which ultimately
brings dissatisfaction between the
customer and the ABC supermarket.
6. The limited technological capability of
the ABC supermarket through which
it can efficiently position itself in the
market.

References
Willcocks, L., & Cullen, S. (2013). Intelligent IT outsourcing. Routledge.
Hirschheim, R., Heinzl, A., & Dibbern, J. (Eds.). (2013). Information Systems Outsourcing:
enduring themes, emergent patterns and future directions. Springer Science & Business Media.
Lampe, R., & Moser, P. (2016). Patent Pools, Competition, and Innovation—Evidence from 20
US Industries under the New Deal. Journal of Law, Economics, and Organization, 32(1), 1-36.