MBP866 Business Strategy: Analyzing Strategic Options for Keells

This report provides a comprehensive analysis of strategic options for Keells Supermarket, a Sri Lankan-based chain. The assignment addresses the generation of strategic options using four key tools: Ansoff's Matrix, Porter's Generic Strategies, Attack versus Defense strategies, and the Strategic Clock. The Ansoff Matrix explores market penetration, product development, market development, and diversification strategies. The Generic Strategies section focuses on cost leadership, differentiation, and focus strategies. The report then examines the application of attack versus defense strategies, emphasizing the defensive approach suitable for Keells' established market position and the potential for offensive strategies in international expansion. Finally, it analyzes the Bowman's Strategy Clock, evaluating strategic positioning options like loss of market, monopoly pricing, risky high margins, focused differentiation, and differentiation, to determine the most competitive positioning strategies for Keells. The report uses various academic sources to support the analysis and provides insights into Keells' strategic choices within the competitive landscape.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Table of Contents
Answer to Question 1.................................................................................................................2
i) Generating the Strategic Options Using Ansoff’s Matrix..................................................2
ii) Generating the Strategic Options Using Generic Strategies..............................................3
iii) Generating Strategic Options Using Attack versus Defense Strategies...........................5
iv) Generating Strategic Options Using the Strategic Clock.................................................7
Answer to Question 2.................................................................................................................8
Answer to Question 3...............................................................................................................11
References................................................................................................................................16

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Answer to Question 1
Keells supermarket is considered to be the chain of the supermarkets which is based
and headquartered at Sri Lanka and it is owned by the John Keells Holdings. The areas
served by the company is Sri Lanka and the products and services delivered by them includes
superstore, hypermarket as well as supermarket (Keells.com, 2020). The number of locations
served by the company in the present scenario includes 97 and in the respective assignment,
the particular organization will be analyzed for the analysis of the different aspects in a
positive manner.
i) Generating the Strategic Options Using Ansoff’s Matrix
Ansoff Matrix will be helpful for Keells in understanding the different strategies
which can be opted by them successfully.
Market Penetration- In the respective strategy, Keells can be looking forward for
increasing their current market place. The respective strategy is used by the different firms
which have the aim in penetrating deep in market with assistance of the existing products and
services. In the Sri-Lankan market, Keells have been able to adopt the strong position,
however, the company can continue to do so through number of various methods such as
decrementing prices for attracting more potential customers (Yu et al., 2018). The risks which
are associated with the strategy is low and it will be the positive factor for Keells.
Product Development- The respective strategy is the other aspect that can be used by
Keells for developing new products and catering the different needs of the existing
marketplace. In the respective purpose, the company would have to perform in an extensive
manner for expanding the range of products. In addition, as Keells have the strong
understanding of the marketspace, the company can be optimally investing in R&D for better

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catering the needs of existing customers (Xavier, Siddiquee& Mohamed, 2019). There is
medium level of risks included in the process which might be leading to different
consequences when the products do not comply with the customer’s requirements.
Market Development- Keells can be utilising the respective strategy of market
development for entering in the new marketplace with the assistance of the existing range of
products which are present (Wernerfelt, 2016). The respective aspect will be creating optimal
gain for Keells due to the strong understanding of the current marketplace as well as
possession of the different advancement in technologies for entering in the new market.
However, the company can choose the foreign market wherein the different actual kind of
needs along with requirements of the customer related segments which do not differ.
Diversification-The respective strategy will be involving high level of risks as Keells
will be entering in the new marketplace with the new product offerings. The strategy is
riskiest among all four as product and market development is needed and the same can be
mitigated with the help of related diversification (Vieira& Ferreira, 2018). The significant
kind of planning can be helpful for Keells in improving their position in leveraging the
strategy for expansion in the market successfully.
These are the four aspects of Ansoff’s Matrix for Keells and out of the four, the
company can be selecting the most appropriate one or two or all the four as per their
effectiveness and need.
ii) Generating the Strategic Options Using Generic Strategies
In case of Keells, the company uses the generic strategy for achieving the high level
of competitiveness which is mainly based on low cost along with correspondingly low selling
prices of the different products as well as services which are being offered to the different
customers. In such scenario, the generic strategy of Keells is Cost Leadership as it will be

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mainly focusing on the achieving of the low costs (Sitinjak,Pramawijaya&Gunawan, 2018).
The low prices are considered to be the fundamental strategic objective which is used by the
pricing strategy of the company. For instance- With the help of automation along with related
technologies, the company can be capable of achieving the low costs in the operations in a
successful manner.
Differentiation is the other appropriate strategy which can be adopted by Keells for
building the competitive advantage in the market. The company can be using the mix of the
differentiation strategy for achieving the growth prospects and objectives simultaneously.
Cost leadership includes the product differentiation as well that will be capable of providing
the different products at low price as a selling point (Sanchez, R. R., & NITL, 2017). As
Keells is present in different parts of Sri-Lanka, therefore, in such scenario, the generic
strategy such as differentiation and cost leadership strategy will be involving the low level of
market segmentation. For instance- The company can be capable of offering the different
retail services to the different customers in the different segments in the target market as well.
Lastly, the focus strategy is the other option which is available to Keells that will be
impacting their performance as a whole. There are two major variants wherein in cost focus,
the firm will be seeking cost advantage in the target market and on the other hand, the
differentiation focuses a firm will be seeking the differentiation in the target market. There
can be mixture of the three strategies that can be applied by Keells in improving their position
in the market and it will be suitable for achieving the above average performance in the
company (Popli,Ladkani& Gaur, 2017). Through following the focus strategy, Keells can be
adopting the unique marketing aspect wherein they will be targeting only the niche market for
making them attracted towards the products which have been developed and it will be
impacting their level of revenue growth and performance as a whole in a positive manner.

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From the analysis of the Porter’s Generic Strategies, the company needs to follow the
cost leadership along with differentiation strategies that will be enhancing the prospects
related to growth for the company and it will be impacting the sales revenues of the company
as a whole. In conclusion, it is noticed that the relative position of the firm within the entire
industry helps in determining whether the profitability of the firm is above or below the
industry average. It is capable of understanding the scenario of the company in the entire
competitive market which will be capable of developing effectiveness in managing their
efficiency and effectiveness as a whole (Orlov&Chubarkina, 2017).
iii) Generating Strategic Options Using Attack versus Defense Strategies
As commented by Miller (2019), the defensive marketing strategyis a useful strategy
for the different companies which are established in nature. The organization does not have to
work actively towards generating the different customers in the different products as well as
services which are being sold by them. In case of Keells Supermarket, the defensive
marketing strategy is considered to be the most suitable one as it will be beneficial in
attracting the large number of customers in the market successfully.
As they have the established business in Sri-Lankan market, the main approach which
has been noticed is related to the reinforcing of the confidence of the customers in the
different products and swat the different newcomers in the process in a successful manner.In
case of Keells Supermarket, defensive strategy is reactive to the market and it helps in
countering moves which are being made by the different competitors who are opting the
offensive strategies for avoiding the loss of the share in the market successfully. Through
usage of the Defensive Strategy, the customers are considered to be the essential part of the
business and in such scenario, Keells have to perform the impossible in order to satisfy the
different needs of customers successfully (Lauer, 2019).

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On the other hand, as opined by Kull, Mena andKorschun (2016), the offensive or
attacking strategy helps in attracting and attacking the entire market through targeting the
weaknesses of the other competitors which are present in the market. The weaknesses of the
competitors are being made as the strength for the company. Moreover, the offensive
marketing strategy does not seek to challenge the different kinds of strengths of the industry
leader as it would be playing to defensive type of marketing kind of capabilities of the
company. Additionally, the attacking strategy will be providing the means for the new
business to hit market and generate a strong and established presence.
For Keells Supermarket, the Defensive Strategy is the ultimate aspect which can be
adopted by the company for improving their position in the market successfully. as it is the
established kind of business which is present in the Sri-Lankan market, therefore, in such
kind of scenario, the defensive strategy will be working as a weapon for them in attacking the
different competitors which are present and it will be impacting and influencing their
business in a positive manner as well (Kim & Mauborgne, 2017).
On the other hand, when Keells is focusing to expand their business operations out of
Sri Lanka, in such scenario, they can be using the Attack or Offensive Strategy that will be
capable of improving their growth percentage to a large extent as a whole. It is the corporate
strategy which will be investing heavily on the research and development practices along
with technology. It is considered to be the effort for staying ahead in the competition and it
will be impacting their growth and effective related prospects in a suitable manner and proper
planning is the key element which is needed to be implemented for reaching the largest
number of customers (Kellermanns et al., 2016).

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iv) Generating Strategic Options Using the Strategic Clock
The Bowman’s Strategy Clock is considered to be the model which is helpful in
exploring the different options for the strategic positioning which is to check how the product
needs to be positioned for giving the most competitive position in the entire market in a
successful manner. As commented by Jensen, Cobbs and Turner (2016), the main purpose of
the respective Bowman’s Strategy Clock is for illustrating that the respective business will be
capable of showcasing variety of options on how to position the product in the competitive
business environment successfully. the different variants are being described as follows:
Loss of Market- The respective position is the disaster in the competitive business
environment and it can be shown with the help of Blackberry Phones which were launched.
However, with the launch of iPhone and android in the market, it impacted the efficiency of
the company Blackberry to a large extent and impacted the growth of the company as a whole
(Hitt et al., 2016).
Monopoly pricing- In case of monopoly pricing, the company is the only player in the
market and it impacts the growth of the company negatively. In such scenario, there are no
such options provided to the customers regarding choosing other alternatives and it impacts
their decision-making patterns negatively (Gurcaylilar-Yenidogan & Aksoy, 2018).
Risky High Margins- It is the other aspect which is needed to be implemented as it is
the high-risk positioning strategy which can be doomed to failure. In such scenario, the
business can be setting high prices without offering anything extra in terms of the perceived
value. It is the uncompetitive pricing strategy as it will be implementing in such manner
(Grünig&Kühn, 2018).
Focused Differentiation- The respective strategy aims in positioning the products at
the price levels which are highest wherein the different customers buy products due to the

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high perceived value. The respective strategy can be adopted by the companies which are
selling the different high and luxurious items to customers (Ellinger et al., 2020).
Differentiation- The main aim is regarding offering the customers with high level of
perceived added value and in such scenario, the branding plays the key role in the respective
strategy successfully.
Hybrid- It will be inclusive of low price along with differentiation in the product
wherein the aim is to persuade the different customers for providing them with good brand
value appropriately (Dvorak &Razova, 2020).
Low Price- It is the other aspect which can be termed as low-cost leaders and the
strategy related to minimization of the cost can be successful in an appropriate manner which
will be adopted by the companies.
Low price and value Added- It is not competitive position for business and the
respective product is not differentiated and customers can perceive very little value.
In case of Keells supermarket, they can be utilising the differentiation strategy for
attracting the large number of customers in the market appropriately. The customers will be
offered with high level of value and branding is the key element which will be attracting the
large group of customers in the market successfully and appropriately (Campbell& Park,
2017).
Answer to Question 2
As commented by Burvill, Jones-Evans and Rowlands (2018), the value innovation is
considered to be the process wherein the organization is capable of introducing the new kind
of technologies or the upgrades that are mainly designed for achieving the both product
related differentiation along with low costs successfully. According to Burke, Van Stel

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andThurik(2016), the value innovation is one of the key principles of the Blue Ocean
Strategy which is considered to be the business-related approach which mainly focuses on
creation of new market related spaces instead of fighting the competitors existing market
share. The goal of the value innovation is related to creation of new demand along with
change the market for rendering the competition which is irrelevant in the market.
For instance-In case of Aldi, the company has been capable of implementing the
Blue Ocean Strategy in an outstanding manner. Aldi Australia implemented as the entire
supermarket industry is saturated with the big players in the Australian market such as
Woolworths or Coles (Bromiley& Rau, 2016). The newcomer, which is the German
supermarket Aldi has been capable of disrupting the market by the respective blue ocean
strategy wherein they have been showcasing the same quality products and services to the
different customers in the market in Australia through applying the minimal kind of pricing
technique that will be improving the growth prospects of the company as a whole.
Whilst Woolworths along with Coles are trying hard to grow in the physical manner
along with adding more items in their shelves, in such scenario, Aldi mainly focused on the
different other aspects of shopping which is the convenience among the different customers
as they are the main assets of the company. In such scenario, it has been seen that the main
aim and purpose of the Blue Ocean Strategy is focusing on the different items in the strategy
related canvas that will be appropriate for bringing highest value to the customers and
improve the value provided to the customers as it is their prime approach for generating the
high sales and revenues in the market successfully (Backman, Verbeke & Schulz, 2017).
Certainly, the creating the new valuable areas in the strategic kind of landscape can be highly
innovative along with beneficial which will be appropriate for improving the process of
managing the different demands of the customers as a whole.

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With the help of the Blue Ocean Strategy, the company can be implementing the
actual differentiation along with low cost to open up the market space along with creating
new demand. It is regarding the creation as well as capturing of the uncontested market space
as it will be important for making the entire competition irrelevant in nature. The Blue Ocean
Strategy mainly aims at providing the company with high success along with increased level
of profitability in the market that is highly competitive and it can be beneficial for improving
the performance and revenue growth of the company in the appropriate manner (Anthony,
Igweh& Stephen, 2019).
In addition, through incorporation of the Blue Ocean Strategy, the main aspect which
can be learnt is regarding the fact that the company will be able to understand the current
state of play which will be suitable for generating strong guidelines for improving
effectiveness of the products and services which will be suitable for making their business
more efficient and profitable in nature (Ansoff et al., 2019). There are different offers are
made available by Aldi to their customers and the products of Aldi are many a times 30%
lesser and cheaper than the prices in comparison to the ones which are being offered to the
different competitors.
Aldi has been highly successful in the current scenario that the shoppers will
increasingly become highly influenced by the value for money and wherein they can be
receiving the proper and high-quality products at the lesser prices in comparison to the other
competitors which are present in the market through the utilisation of the products which are
of high quality and the prices are high as well. Most of the blue ocean strategies are created
within the red oceans through expanding the existing industry related boundaries. The key to
the successful blue ocean strategy is regarding managing their effectiveness in comparison to
other competitors through competitive pricing (Alonso &Bressan, 2016). The competitive
pricing is the key type of methodology for Aldi as Aldi can be capable of offering the quality

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items to the different customers through low costs as it helps in purchasing in incredible
volume.
Furthermore, it is known as the economies of scale and the purchasing the substantial
amounts of each item helps in enabling Aldi in passing the investments funds to their end
customers in the market as well. Aldi is capable of understanding the customers along with
delivering their desires to them. The respective strategy of Aldi is regarding selling of the
high-quality products at the lesser price which will be beneficial in improving the
effectiveness of the company as a whole and improve the savings of the customers in
purchasing the different products successfully (Alexy et al., 2018). Therefore, from the
overall analysis of the Aldi grocery store, it can be seen that they are capable of improving
their effectiveness and generate profitability successfully in the market. Additionally, Aldi
has been capable of providing the growth of the company in a successful manner as it will be
offering the quality services with the exact lowest pricing technique that is efficient in
generating the services appropriately and without much issues. These are the different plenty
of options which are available for Aldi to improve their position and maintain their position
successfully. The campaign related to the Swap as well as Save are managed and adopted
through upgrading software system and currently, there are differences in pricing strategies
that will be delivering the efficient kind of approach in improving their marketing techniques
for selling the products and generating the guidelines of the Blue Ocean Strategy in other
segments as well which will be creating and offering other opportunities to improve their
effectiveness in a proper manner that will be generating high profitability and revenues
(Agnihotri, 2016).