Iceland Supermarket: Competitive Advantage Business Project Report

This report provides a comprehensive business analysis of Iceland Supermarket, examining its strategies for achieving and maintaining a competitive advantage within the supermarket industry. The analysis begins with an introduction to Iceland Supermarket, followed by an overview of its competitive advantages, and an exploration of external market forces using PESTLE analysis and Porter's Five Forces. The report delves into internal factors, including supply chain management, and offers strategic recommendations for future success. The study concludes by emphasizing the importance of adapting to both internal and external environments to mitigate risks and capitalize on opportunities in the market. The report also focuses on the importance of understanding consumer behavior and adapting business strategies to meet the changing needs and preferences of consumers.

Business Project

Table of content
Contents
INTRODUCTION.......................................................................................................................................4
Main body...................................................................................................................................................4
Competitive advantage:...............................................................................................................................4
Porters five forces:.......................................................................................................................................6
Internal analysis:..........................................................................................................................................7
Recommendation:........................................................................................................................................7
CONCLUSION...........................................................................................................................................7
REFERNECES............................................................................................................................................8

INTRODUCTION
Business is the process where the organization is engaged in the commercial and
industrial process. On the other hand, this is the method where the company provide satisfactory
services to consumer in the well define manner (Abdin, 2019). The present report is based upon
Iceland supermarket which deals in frozen and prepared foods. Apart from this they also sold
different kind of products such as diary, and dry goods. The report covers about the competitive
market and the advantage in detail way. Apart from this different method and technique are used
to understand the external market effectively.
Main body
Company overview: Iceland food limited is the British supermarket chain which
Headquarter is in Deeside Wales. The main product of the company are meals and vegetables.
Apart from this company was founded in year 1970 by Malcolm Walker. There are about 23000
employees who are currently working for the company. The main objective of the company is to
provide better quality product and service which lead to expand and explore the consumer as
well as market effectively. The company use most historical slogan “Mums love it” as to gain the
attraction of the people effectively. There are major competition present in the market, so the
company must continually conduct market survey as to understand the current and future trends
which make more effective strategies to overcome the problems and hurdles more effectively.
Here some method through which enterprise can examine the external forces in the proper
manner.
Competitive advantage:
For the supermarket chain the understanding the consumer is very much essential as this
provide effective market research and strategies which leads to expand the tapped the larger
number of audiences in the shorter time span. So, the management of Iceland supermarket proper
analysis should be done to as to figure out the external forces for the smooth functioning of the
company. For accessing the external environment Pestle analyses is considered in detail manner:
Pestle analysis:
This is the method through which organization use to identifying the changes and make
sure to avail product and services as per there needs and wants. This kind of analysis help in
fulfilling the needs and wants of the customer and aid in developing sustainable business model
for the longer time period. In the context of Iceland supermarket, the administration must
manage and control all the activities and make sure to implement changes present in the external
environment.
Political factor: This is the factor which is consist of all the legal framework and
legislation which are formed by the government. The present political condition of UK is stable
as the nation have democratic party which use to manage and control all the activities which are
associated with the nation. As for the Iceland supermarket the management must follow all the
rules and regulation which is associated with the origination activities. Along with this Brexit
have affected the business as there were investor which were associated with the European
market. Although the government also support the business as they provide fund in order to

expand the business effectively. For operating smooth business operation firm must understand
the political condition as it reduce the risk and uncertainty present in the business.
Economical factor: As the name suggested this factor consist of inflation, gross
domestic income, disposable and per capita income. As for the UK market the nation economy is
developed, and people have higher number of middle- and higher-income group people. Hence
this make, more effective for the Iceland supermarket to ensure earn more profit for the longer
time span. Apart from this disposable income is more which means people have more spending
power and this help in capturing large market share for the company effectively. Beside this,
gross domestic product rate is high in UK market rather than other country in the world which
become advantage for most of the company to expand the business effectively. In this case the
enterprise can open new market chain as to provide effective services and can earn higher
revenue constantly.
Social factor: This is considered as the most essential factor for the company as this
provide insight about the needs and wants person in the detail manner. There is different element
which are present such individual belief, education level, gender and background. All these
factors impact the buying behavior of the consumer. For the market like UK the firm must
conduct intensive market survey and to gain the proper understanding of the consumer which
leads to earn more profit for the company for the longer time period. In the context of Iceland
supermarket, the manger has to work as per the need such as people of UK are more flexible as
the company have to provide online grocery which tends to attract larger number of audiences in
the smaller time frame. Apart from this company must be flexible as this aid to adopt different
strategies effective as easy to figure out the social environment in efficient manner.
Technological factor: The technology has changed the way of doing business in the
present world. There has been constant change in the technology through which company are
attracting the larger audience effectively. The internet has changed the face of supermarket store
buying experience and made shopping easier from the previous days. So, Iceland supermarket
management have to use technology such as new software through which firm can track the
goods and it will help to make proper supply chain. Apart from this organization can use online
mode to sell their grocery as this will capture respective as customer because it has ease of
shopping for the customer as well as company. However, the company have to create effective
website which has become essential these days to attract the customer.
Legal factor: This factor consists of rules and regulation which are used to operate the
business activities smoothly. Hence it become vital for the firm to follow all the instruction as
per the norms which help in achieving desire aims and objective in the well define manner. For
the organization like Iceland supermarket to follow all the policies which are made by UK
market (Ahmad, 2019). Apart from this, organization must follow all the legal requirement such
as providing safety measure to the workers who are working in the company. Furthermore,
company is liable for the safety of the consumer and provide better and efficient workforce and
which lead to explore and provide vast business opportunity for the company.

Economical factor: Such factor came into picture recent years as there have been recent
growth in the industry which leads to increase the carbon emission. This in result harm the
environment and society which directly also impact the company and the organization. So,
supermarket chain like Iceland must create effective policies which minimize the harmful
emission. Apart from this, company is moving towards the carbon neutral strategies which aid in
creating cleaner environment and safer place for the coming generation. However, the company
also use solar powered running operation which produced less amount of carbon and make safer
for the people and help to make a world better place.
Porters five forces:
This are the forces which are used to determine the different factor which effect the
business. So, this vital for the firm to manager to manage and control all the external activities as
of company can reduce and manage all the aspect in order to improve the working performance
of the firm effectively (Banaian and MacDonald 2019). For the organization like Iceland
supermarket firm have to use such models as analyses the forces which in the detail manner.
There is other factor which help to provide more product and service which lead to expansion as
well to earn more higher revenue. Here is the deatil explanation which is stated briefly down
below:
Threat of new entrant: As there are different factor which effect the business due
different companies are entering in the market. Hence this become difficult for the company
organization to sustain for the longer time period. In order to overcome such problem Iceland
supermarket, have to bring diversification in their product as this create larger customer base and
create more customer for the longer time period. As company can use different strategies which
use to encounter the rival and slow down the impact which present in the market.
Bargaining power of suppliers: Here the supplier has monopoly which directly affect
the business. As most of the company hire third party for the raw material so this create an
opportunity for the supplier to raise the price of there service. In result this create rise in price of
the product for the final user. Hence this is crucial for the Iceland supermarket chain to hire
different suppliers which provide ease for the firm to maintain the demand and supply for the
longer time period. Apart from this, it also helps in minimizing the impact of supplier and
company to indulge in making effective supply chain which help in increasing the value and
product reliability in the minds of customer.
Bargaining power of buyer: In the modern world people have become more product
sensitive and have driving force for the best value for the money services. There is vast amount
of option present for the consumer which make difficult for the company to fulfil the need and
demand of the user effectively. In the context of Iceland supermarket, the management must
make sure to figure out each aspect of buyer behavior as this will assist firm to manage and
reduce the barging power of user. Apart from this firm have focus on quality as this is consider
most important factor which reduce the power of buyer and company can earn profit for the
longer time period.

Threat of substitute: In this competitive world there are different rivals present in the
market with the similar product. In this case Iceland supermarket have to keep their price low
and which help to slow down the threat of different product present in the business. Beside this
firm can use technology to overcome the problems and sustain for the longer time period.
Rivalry among the existing company: In supermarket chain the company use various
kind of tools and method to gain the prime position in the market. So, Iceland supermarket chain
must use pricing strategies, market campaign and added value services as to attract the customer.
Rivalry is high in terms of cost, so the company must keep their price low as to gain more market
share effectively.
Internal analysis:
Supply chain management:
This is the process through which company use to deliver the product and service
effectively. Hence in the recent years Iceland supermarket have change their strategies which
leads to expand as well as explore the business effectively (Hair and et., al., 2019). The company
use software and new technology which will aid the firm to increase the market share. Apart
from this company can manage the logistic department effectively.
Recommendation:
From the analysis this has been recommend to the firm is that enterprise must focus of the
external environment as this will help in capturing large market share effectively. Beside this
firm must focus to build the effective business model which help to reduce the competition and
deliver quality ad well as timely product and service. For this, the management is recommended
to adopt an efficient and proactive approach as this can help the firm to transport the website into
important sources of competitive advantages.
CONCLUSION
This has been concluded that for operating business opportunity firm must manage and
control the external as well as internal environment which help firm to reduce any kind of risk
and uncertainty present in the market. The pestle analysis is been used which help in analyzing
market changes. At the firm must manage and control supply chain to deliver timely service.

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