Business Project: Morrisons Company Analysis and Strategies

This report provides a comprehensive analysis of Morrisons, a major UK-based food retailer. It begins with an introduction to marketing and its importance in business, followed by an overview of Morrisons' company profile, including its position relative to competitors like Tesco, Sainsbury's, and Asda. The report delves into Morrisons' competitive advantages, examining how it gains an edge through product quality, pricing, and customer focus. It applies Porter's Five Forces model to assess the competitive landscape, highlighting the high rivalry, threat of new entrants, and the impact of buyer and supplier power. A SWOT analysis is conducted to evaluate Morrisons' strengths, weaknesses, opportunities, and threats. The 7 P's of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence) are then explored to understand Morrisons' marketing strategies. The report concludes with recommendations for Morrisons to enhance its competitive advantage and adapt to market trends, emphasizing the need for strategic management, innovation, and customer service. The report also provides a conclusion and references.

Extended Business Project –
Individual Report Framework
(Suggested)

Contents
Introduction......................................................................................................................................1
MAIN BODY..................................................................................................................................1
Company overview......................................................................................................................1
Competitive advantage................................................................................................................1
Swot analysis...............................................................................................................................2
7 P's of Marketing Mix................................................................................................................3
Recommendations........................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

Introduction
Marketing is an action that promotes business activities and increases selling and buying
capability of enterprise by using market research as well as advertising. It is essential in product
development and establishing new spaces in market areas. For the purpose of this study
Morrisons company is taken. This report consists of benefits and application of analytical tools
in gaining competitive advantage in market and usage of models that determines the current
position of an organisation.
MAIN BODY
Company overview
Morrisons is smallest retail company among the four largest retailers like Tesco,
Sainsbury and Asda in UK. It is a food retailer organisation based in Yorkshire, United
Kingdom. This company has around 500 stores across the country and also provides robust home
delivery of products (Baker, 2016).
Competitive advantage
Competitive advantage refers to such a condition in which company sets higher prices,
has large customer base as well as brand loyalty in the market. It is one of the significant goal of
every enterprise to establish competitive advantage. Morrisons gains competitive advantage by
producing qualitative products at lower rates and supplying it on high demands of customers.
Porter's five force model
Asda, Tesco, Sainsbury, Boots, ALDI are the retail companies which are competing with
Morrisons in UK market.
Rivalry (High):- In UK economy competition is high and competitors has occupied most
of the market spaces. Among them the leading supermarkets are owned by Tesco, Sainsbury and
Walmart. Their market share in UK is wide as compared with Morrison. Henceforth, company
faces high threats from these chains (Deepak and Jeyakumar, 2019).
Threat of new entrants (High):- In United Kingdom's retail industry several global
competitors has entered like American Walmart and German Lidl. They are increasing their
number of stores in UK. On the contrary, internal competitors are also rising and establishing
their shops in local markets.
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Buyer power (Medium) :- Customers are engaged in comparing the prices of product
with other supermarkets commodities to gain value. Company offers various food products at
low prices and also provides great discounts, special coupons, half price and by one get one free
offer to satisfy the requirements as well as pull large customers.
Substitution (Medium):- Start-ups and franchised grocery stores may challenge the
company as they are convenient for local population. Morrison has wide range of products which
replaces it with company's own food products due to their availability at cheaper prices.
Supplier power (low):- It has self manufacturing units and farms, which assists the
company in reducing the power of distributors in UK. It has developed strong relationship with
the major players in market like suppliers and customers (Grebenshchikova, and Yakushev,
2017).
Swot analysis
Morrisons company is engaged in retail industry and supplies its product to customers
across United Kingdom.
Strengths-
 Morrisons has its own established manufacturing facilities.
 It has strong relationships with both the customer and suppliers.
 Company is extensively customer oriented and collects customer feedbacks through the
applications like MyView and More Card. It provides large range of products and uses the pricing strategy Price crunch in
businesses.
Weaknesses-
 It is not widely spread across the global market as compared with other large retailers in
UK. Brand image of company was affected by the problem created by farmers through the use
of farmers rights.
Opportunities-
 Growing interest of the customers on use of organic products can be utilised by company
in increasing its sales volume. Morrisons can expand its operations in the international market.
Threats-
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 Recent change in the policies of government in resolving inflation problem in economy is
affecting the profit margin of company.
 Increase in number of online competitors is affecting competitive advantage of company.
7 P's of Marketing Mix
Marketing mix analyses position of company in the wider market and different strategies
applied in marketing..
Product- Morrisons provides high quality & fresh food products to the customers. This
is the main reason behind the success of company. Its products are valuable asset and are
rendered through brands M Kitchen, M signature, Morrisons Cellar, Just for kids and various
other.
Price- It provides the food products at lower prices to customers as well as ensures better
quality in offerings. Morrisons company uses pricing strategies like promotional, product bundle,
premium pricing as per the prevailing conditions in marketplace (Akgün, Keskin, and Ayar,
2014).
Place- It renders its products throughout the country and is physically present in 600
retail stores and 150 other convenience stores with approximately 1,20,000 employees. It is
geographically distributed in United Kingdom.
Promotion- It carry out sustainable development activities by engaging and encouraging
farmers In United Kingdom. Morrisons provides several rewarding schemes to its customer like
match and more cards, discounts, coupons on range of products through use of platforms like
online and offline.
People- Morrisons provides employment opportunities to local population to promote
well being in community. It has created jobs for local bakers, greengrocers and fishmongers.
Approximately around 1,00,000 people are engaged in the retail chain of company.
Process- It provides different channels to the customers as per their convenience in the
market. On a regular basis company offers products with lower prices. Effective communication
channels are used by Morrisons to connect with customers and apply their suggestions in
improving the products and services.
Physical Evidence- It is present in UK in around 600 retail and convenience stores. The
distribution network of company includes one domestic centre and 7 regional centres.
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Morrison's presence can be seen in online platforms, distribution centres, supermarkets and in
manufacturing units.
Recommendations
From the above study it can be recommended that in order to gain competitive advantage
in future years Morrisons should develop special teams in management to critically analyse
current conditions and trends in market to make and implement strategies that assists in
establishing competitive advantage across United Kingdom. It can pull customers of competitors
by improving the use of strategy like innovation in food products. Company can integrate with
internal competitors and local shops to improve the accessibility of various resources in market
and to beat the competition with large supermarket chains. It should also invest in providing
exceptional services to customers.
CONCLUSION
It is concluded from the above report that marketing plays an essential role in the growth
and success of an organisation. For this, the management is held responsible to implement
various marketing theories such as marketing mix, porter five forces etc. which makes easy for
an organisation to update their existing offerings and achieve competitive advantage in the
rivalry market.
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REFERENCES
Books and Journals
Akgün, A.E., Keskin, H. and Ayar, H., 2014. Standardization and adaptation of international
marketing mix activities: A case study. Procedia-Social and Behavioral Sciences, 150,
pp.609-618.
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Grebenshchikova, L.S. and Yakushev, N.M., 2017. Definition of Competitiveness of the
Enterprise Using the Five Forces of M. Porter. Bulletin of Kalashnikov ISTU, 20(3),
pp.51-53.
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