Strategic Management Plan for Morrisons Supermarket
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Desklib provides past papers and solved assignments for students. This report analyzes Morrisons' strategic position and proposes a growth plan.

Strategic Management Plan
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Table of Contents
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................4
1. Apply the PEST/LE Analysis to assess potential scenarios for your organisation..................4
2. Analyse the organisation’s capabilities by using appropriate frameworks.............................5
3. Apply the Five Forces model to analyse the competitive environment...................................5
4. Apply a SWOT analysis to the organisation and critically evaluate the external and internal
environment.................................................................................................................................6
5. An evaluation of the different types of strategic directions available to the organisation.......8
6. Justification and recommendation of the most appropriate growth strategies available
currently to the organisation......................................................................................................11
7. Production of a strategic management plan that addresses one of the growth strategies,
inclusive of SMART objectives, tactics, implementation and control considerations..............12
Conclusion.....................................................................................................................................14
Reference List:...............................................................................................................................15
2
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................4
1. Apply the PEST/LE Analysis to assess potential scenarios for your organisation..................4
2. Analyse the organisation’s capabilities by using appropriate frameworks.............................5
3. Apply the Five Forces model to analyse the competitive environment...................................5
4. Apply a SWOT analysis to the organisation and critically evaluate the external and internal
environment.................................................................................................................................6
5. An evaluation of the different types of strategic directions available to the organisation.......8
6. Justification and recommendation of the most appropriate growth strategies available
currently to the organisation......................................................................................................11
7. Production of a strategic management plan that addresses one of the growth strategies,
inclusive of SMART objectives, tactics, implementation and control considerations..............12
Conclusion.....................................................................................................................................14
Reference List:...............................................................................................................................15
2

Introduction
In today’s massively competitive business environment, it is important that business firms create
and develop effective business strategies to function efficiently in the market. Morrisons is one
of the largest supermarket chains in UK that has an annual turnover of £16.1 billion. It was
founded in 1899 and has its headquarters in Bradford, West Yorkshire. It specialises in clothing,
food and beverage, CDs, DVDs and magazines. In 2017, the total revenue it earned was
GB£16317 million. It is one of the most renowned retail chains functioning in UK and employs
more than 132000 employees. This report is aimed at gaining a wider perspective about the
functioning of the organisation and identifying appropriate business strategies that could help it
to attain its long and short-term goals and achieve profit maximisation at the market. It will
identify various growth strategies and recommend the most effective growth plan that would
help it attain a greater competitive advantage over its business rivals in the market.
3
In today’s massively competitive business environment, it is important that business firms create
and develop effective business strategies to function efficiently in the market. Morrisons is one
of the largest supermarket chains in UK that has an annual turnover of £16.1 billion. It was
founded in 1899 and has its headquarters in Bradford, West Yorkshire. It specialises in clothing,
food and beverage, CDs, DVDs and magazines. In 2017, the total revenue it earned was
GB£16317 million. It is one of the most renowned retail chains functioning in UK and employs
more than 132000 employees. This report is aimed at gaining a wider perspective about the
functioning of the organisation and identifying appropriate business strategies that could help it
to attain its long and short-term goals and achieve profit maximisation at the market. It will
identify various growth strategies and recommend the most effective growth plan that would
help it attain a greater competitive advantage over its business rivals in the market.
3
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Task 1:
1. Apply the PEST/LE Analysis to assess potential scenarios for your organisation.
Political: Political factors have a huge influence on the smooth functioning and success of
Morrisons UK. After Britain’s decision to exit EU in 2016, there were huge political and
economic turmoil in UK. This affected the business operations and success of Morrisons. The
weak value of pounds has resulted in imports that are more expensive. The country’s
infrastructure influences it too as creation and maintaining an effective infrastructure needs
acquisition of permission from different regulative bodies as well as the government. Trade
regulations relating to the retail sector influences it too. Apart from that, different pricing
regulations, taxation policies and wage legislations have a huge effect on the successful
functioning of Morrisons UK (Schaltegger et al., 2016).
Economic: There is a stiff competition in the retail market in UK and because of this, there is a
price war among them to reduce costs and attract new customers while retaining the current ones.
Various factors such as exchange rates along with stability in currency influence it. The stability
and effectiveness of financial markets and quality of infrastructure are to be considered
appropriately by Morrisons. Other factors that influence its business operations are labour costs,
overall productivity, nation’s economic growth, interest and inflation rates along with the total
unemployment rate (Akter et al., 2016).
Social: Demographic changes like that of UK’s ageing population significantly influence its
business operations. This ageing population of UK provides potentials for Morrisons where it
can penetrate and flourish. Apart from that, other social factors affecting Morrison’s business
operations are health and environmental awareness among its users. With the rise in health
conscious consumers, the need to produce healthy food options have increased.
Technological: There have been huge developments in the technological sector and internet
retailing has become common. Morrisons has introduced the concept of grocery e-commerce and
partners with Ocado.com to cater to the varying needs and preferences of the customers. The
various technological developments by Morrison’s business rivals challenge them to strive
harder to attract a wider market.
Legal: Various laws and regulations affect the business operations of Morrisons. The Workplace
Pensions Legislations, along with various other employment laws, data protection and health and
4
1. Apply the PEST/LE Analysis to assess potential scenarios for your organisation.
Political: Political factors have a huge influence on the smooth functioning and success of
Morrisons UK. After Britain’s decision to exit EU in 2016, there were huge political and
economic turmoil in UK. This affected the business operations and success of Morrisons. The
weak value of pounds has resulted in imports that are more expensive. The country’s
infrastructure influences it too as creation and maintaining an effective infrastructure needs
acquisition of permission from different regulative bodies as well as the government. Trade
regulations relating to the retail sector influences it too. Apart from that, different pricing
regulations, taxation policies and wage legislations have a huge effect on the successful
functioning of Morrisons UK (Schaltegger et al., 2016).
Economic: There is a stiff competition in the retail market in UK and because of this, there is a
price war among them to reduce costs and attract new customers while retaining the current ones.
Various factors such as exchange rates along with stability in currency influence it. The stability
and effectiveness of financial markets and quality of infrastructure are to be considered
appropriately by Morrisons. Other factors that influence its business operations are labour costs,
overall productivity, nation’s economic growth, interest and inflation rates along with the total
unemployment rate (Akter et al., 2016).
Social: Demographic changes like that of UK’s ageing population significantly influence its
business operations. This ageing population of UK provides potentials for Morrisons where it
can penetrate and flourish. Apart from that, other social factors affecting Morrison’s business
operations are health and environmental awareness among its users. With the rise in health
conscious consumers, the need to produce healthy food options have increased.
Technological: There have been huge developments in the technological sector and internet
retailing has become common. Morrisons has introduced the concept of grocery e-commerce and
partners with Ocado.com to cater to the varying needs and preferences of the customers. The
various technological developments by Morrison’s business rivals challenge them to strive
harder to attract a wider market.
Legal: Various laws and regulations affect the business operations of Morrisons. The Workplace
Pensions Legislations, along with various other employment laws, data protection and health and
4
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safety laws affect its functioning. It has to adhere to all these laws and ensure that the employees
get their basic rights at the workplace as has been stated by the rule of law (Boyd et al., 2017).
Environmental: Recently, the number of environmentally conscious consumers has increased
and to cater to their varying needs; it has become important for Morrisons to introduce practices
like use of recycled materials and paper packaging. Morrisons has always conducted and
supported environmental practices and this awarded the title of being the ‘most sustainable
retailer of the year in 2013.
5
get their basic rights at the workplace as has been stated by the rule of law (Boyd et al., 2017).
Environmental: Recently, the number of environmentally conscious consumers has increased
and to cater to their varying needs; it has become important for Morrisons to introduce practices
like use of recycled materials and paper packaging. Morrisons has always conducted and
supported environmental practices and this awarded the title of being the ‘most sustainable
retailer of the year in 2013.
5

here were huge political and economic turmoil in UK.
at are more expensive
as creation and maintaining an effective infrastructure needs acquisition of permission from different regulative bodies as well as the government.
taxation policies and wage legislations have a huge effect on the successful functioning of Morrisons UK (Schaltegger et al., 2016).
omic:
is a stiff competition in the retail market in UK and because of this, there is a price war among them to reduce costs and attract new customers while retaining the current ones.
us factors such as exchange rates along with stability in currency influence it
factors that influence its business operations are labour costs, overall productivity, nation’s economic growth, interest and inflation rates along with the total unemployment rate (Akter et al., 20
Social:
Demographic changes like that of UK’s ageing population significantly influence its business operations.
This ageing population of UK provides potentials for Morrisons where it can penetrate and flourish.
Apart from that, other social factors affecting Morrison’s business operations are health and environmental awareness among its users. With the rise in health conscious con
lopments in the technological sector and internet retailing has become common.
he concept of grocery e-commerce and partners with Ocado.com to cater to the varying needs and preferences of the customers.
Legal:
Various laws and regulations affect the business operations of Morrisons.
The Workplace Pensions Legislations, along with various other employment laws, data protection and health and safety laws affect its functioning.
It has to adhere to all these laws and ensure that the employees get their basic rights at the workplace as has been stated by the rule of law (Boyd et al., 2017).
a
Environmental:
Recently, the number of environmentally conscious consumers has increased and to cater to their varying needs; it has become important for Morrisons to introduce
Morrisons has always conducted and supported environmental practices and this awarded the title of being the ‘most sustainable retailer of the year in 2013.
6
at are more expensive
as creation and maintaining an effective infrastructure needs acquisition of permission from different regulative bodies as well as the government.
taxation policies and wage legislations have a huge effect on the successful functioning of Morrisons UK (Schaltegger et al., 2016).
omic:
is a stiff competition in the retail market in UK and because of this, there is a price war among them to reduce costs and attract new customers while retaining the current ones.
us factors such as exchange rates along with stability in currency influence it
factors that influence its business operations are labour costs, overall productivity, nation’s economic growth, interest and inflation rates along with the total unemployment rate (Akter et al., 20
Social:
Demographic changes like that of UK’s ageing population significantly influence its business operations.
This ageing population of UK provides potentials for Morrisons where it can penetrate and flourish.
Apart from that, other social factors affecting Morrison’s business operations are health and environmental awareness among its users. With the rise in health conscious con
lopments in the technological sector and internet retailing has become common.
he concept of grocery e-commerce and partners with Ocado.com to cater to the varying needs and preferences of the customers.
Legal:
Various laws and regulations affect the business operations of Morrisons.
The Workplace Pensions Legislations, along with various other employment laws, data protection and health and safety laws affect its functioning.
It has to adhere to all these laws and ensure that the employees get their basic rights at the workplace as has been stated by the rule of law (Boyd et al., 2017).
a
Environmental:
Recently, the number of environmentally conscious consumers has increased and to cater to their varying needs; it has become important for Morrisons to introduce
Morrisons has always conducted and supported environmental practices and this awarded the title of being the ‘most sustainable retailer of the year in 2013.
6
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2. Analyse the organisation’s capabilities by using appropriate frameworks.
The VRIO framework is one of the most effective internal analysis tools that helps an
organisation to group their varied resources according to some specific traits within the
framework. These four dimensions are valuable, rare, imitable and organised. The VRIO
framework for Morrisons UK has been conducted below:
Is it
Valuable?
Is it
rare?
Is it hard to
imitate?
Is it organised to exploit?
YES NO NO YES
Competitiv
e Parity
YES NO NO YES
Temporary
competitive
advantage
YES NO NO YES
Unused
competitive
advantage
YES NO NO YES
Long term
competitive
advantage
Table 1: VRIO Analysis of Morrisons
Source: Created by the learner
3. Apply the Five Forces model to analyse the competitive environment.
Porter’s five forces model is conducted to examine the marketing environment of Morrisons
along with identifying and analyzing the different forces that affect its business operations.
Rivalry: In UK, there is a stiff competition in the retail sector and Morrison’s chief competitors
are ASDA, Tesco and Sainsbury. Morrisons has the fourth position in the UK market with 11.9
% market share. Thus, it can be stated that the threat of rivalries in UK for Morrisons is high.
Threat of New Entry: In the UK retail market, various global competitors have penetrated and
expanded their business. In UK, German based Lidl and US based ASDA has flourished and
succeeded. Lidl currently has around 2% market and therefore, it can be stated that the threat is
7
The VRIO framework is one of the most effective internal analysis tools that helps an
organisation to group their varied resources according to some specific traits within the
framework. These four dimensions are valuable, rare, imitable and organised. The VRIO
framework for Morrisons UK has been conducted below:
Is it
Valuable?
Is it
rare?
Is it hard to
imitate?
Is it organised to exploit?
YES NO NO YES
Competitiv
e Parity
YES NO NO YES
Temporary
competitive
advantage
YES NO NO YES
Unused
competitive
advantage
YES NO NO YES
Long term
competitive
advantage
Table 1: VRIO Analysis of Morrisons
Source: Created by the learner
3. Apply the Five Forces model to analyse the competitive environment.
Porter’s five forces model is conducted to examine the marketing environment of Morrisons
along with identifying and analyzing the different forces that affect its business operations.
Rivalry: In UK, there is a stiff competition in the retail sector and Morrison’s chief competitors
are ASDA, Tesco and Sainsbury. Morrisons has the fourth position in the UK market with 11.9
% market share. Thus, it can be stated that the threat of rivalries in UK for Morrisons is high.
Threat of New Entry: In the UK retail market, various global competitors have penetrated and
expanded their business. In UK, German based Lidl and US based ASDA has flourished and
succeeded. Lidl currently has around 2% market and therefore, it can be stated that the threat is
7
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comparatively low currently. Apart from that, a number of internal competitions and cooperative
plans have expanded their businesses to gain a wider market share. Therefore, for Morrisons, the
threat of new entrants is high (Brewster, 2017).
Buyer power: It is usual for customers to compare the prices and value offered by different retail
chains operating in UK. Therefore, it becomes important for Morrisons to have a low price
strategy that satisfies the customers. It strives to provide the best possible quality and a huge
variety of special offers, discounts and deals. Thus, it can be seen that the buyer power in this
case, is medium.
Substitution: In today’s increasingly competitive business environment, Morrisons faces
challenges from individual as well as franchised groceries. In order to provide products at a low
price, there may be compromises on the product quality. For example, Morrisons replaced its
popular pork sausage rolls from its own factories and the sizes and taste have not satisfied
consumers. Therefore, it can be seen, that the substitute level is medium here (Chang, 2016).
Supplier power: Morrisons possesses its own farms and manufacturing units and this assists in
reducing the supplier power. It maintains an effective relation with its suppliers and this helps in
lowering the costs. However, it can be stated that this threat is low.
4. Apply a SWOT analysis to the organisation and critically evaluate the external and
internal environment.
Strengths Weaknesses
Morrisons is one of the largest
supermarket chains in UK
It has an employee strength of over
130000 qualified and competent
workers
It possesses an efficient distribution
network and supply chain
It offers a wide range of products to its
Morrisons has a confined geographical
reach when compared to other retail
giants like Tesco and ASDA
It faces intense competition from its
business rivals like Tesco, ASDA and
Sainsbury (Demuijnck, 2016).
It has to formulate a low price strategy
to sustain in the market, which at times
8
plans have expanded their businesses to gain a wider market share. Therefore, for Morrisons, the
threat of new entrants is high (Brewster, 2017).
Buyer power: It is usual for customers to compare the prices and value offered by different retail
chains operating in UK. Therefore, it becomes important for Morrisons to have a low price
strategy that satisfies the customers. It strives to provide the best possible quality and a huge
variety of special offers, discounts and deals. Thus, it can be seen that the buyer power in this
case, is medium.
Substitution: In today’s increasingly competitive business environment, Morrisons faces
challenges from individual as well as franchised groceries. In order to provide products at a low
price, there may be compromises on the product quality. For example, Morrisons replaced its
popular pork sausage rolls from its own factories and the sizes and taste have not satisfied
consumers. Therefore, it can be seen, that the substitute level is medium here (Chang, 2016).
Supplier power: Morrisons possesses its own farms and manufacturing units and this assists in
reducing the supplier power. It maintains an effective relation with its suppliers and this helps in
lowering the costs. However, it can be stated that this threat is low.
4. Apply a SWOT analysis to the organisation and critically evaluate the external and
internal environment.
Strengths Weaknesses
Morrisons is one of the largest
supermarket chains in UK
It has an employee strength of over
130000 qualified and competent
workers
It possesses an efficient distribution
network and supply chain
It offers a wide range of products to its
Morrisons has a confined geographical
reach when compared to other retail
giants like Tesco and ASDA
It faces intense competition from its
business rivals like Tesco, ASDA and
Sainsbury (Demuijnck, 2016).
It has to formulate a low price strategy
to sustain in the market, which at times
8

customers such as clothes, food,
beverages and music
It has developed itself with strong
acquisitions
Morrisons is enlisted on London Stock
Exchange as well as FTSE Index
Online shopping has boosted its
business potentials
may lead to decreased revenues.
The brand image of the company
suffered a setback after the past issues
relating to the farmer rights.
Opportunities Threats
There is an evolving market for various
organic products and Morrisons can use
this opportunity in its favour (Martinez,
2015).
It has opportunities of overseas
business expansion that will increase its
overall business
Acquiring of smaller companies and
various tactful partnerships helps the
business to develop and attain more
success.
There is a rising demand for private
labels and Morrisons has the
opportunity to cater to this specific
need of the customers.
Changes in the different government
laws and policies and increase in taxes
affect its smooth functioning in the UK
market
The high market share of Morrison’s
business rivals adversely effects its own
margins
High business by the various
ecommerce companies affects the
business of Morrison’s offline retail
stores
5. An evaluation of the different types of strategic directions available to the organisation
It is important for a huge and varied organisation like Morrison to focus effectively on its various
resources as it helps in strengthening its business operations. It should see to it that all the
employees strive towards attaining the common goals and achieving profit maximisation at the
9
beverages and music
It has developed itself with strong
acquisitions
Morrisons is enlisted on London Stock
Exchange as well as FTSE Index
Online shopping has boosted its
business potentials
may lead to decreased revenues.
The brand image of the company
suffered a setback after the past issues
relating to the farmer rights.
Opportunities Threats
There is an evolving market for various
organic products and Morrisons can use
this opportunity in its favour (Martinez,
2015).
It has opportunities of overseas
business expansion that will increase its
overall business
Acquiring of smaller companies and
various tactful partnerships helps the
business to develop and attain more
success.
There is a rising demand for private
labels and Morrisons has the
opportunity to cater to this specific
need of the customers.
Changes in the different government
laws and policies and increase in taxes
affect its smooth functioning in the UK
market
The high market share of Morrison’s
business rivals adversely effects its own
margins
High business by the various
ecommerce companies affects the
business of Morrison’s offline retail
stores
5. An evaluation of the different types of strategic directions available to the organisation
It is important for a huge and varied organisation like Morrison to focus effectively on its various
resources as it helps in strengthening its business operations. It should see to it that all the
employees strive towards attaining the common goals and achieving profit maximisation at the
9
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market. A proper strategic planning helps an organisation to boost its growth and development.
Thus, in order to realise the strategic directions of Morrisons, Bowman’s Strategy Clock Model
has been conducted below:
Bowman’s Strategy Clock Model
Bowman’s Strategy Clock is one of the most effective marketing models which assists an
organisation to examine and assess its current market position by comparing itself with its
competitors. The various positions for Morrisons according to the Bowman’s Strategy Clock are-
Position 1: Low Price and Low Value Added
Under this position, Morrisons will try to fix low prices for the different goods and services that
it offers. Its products are not distinguished and thus their value would be low. Such a position
will not offer a competitive advantage in the market for Morrison (Morrison, 2015).
Position 2: Low Price
The various goods and services offered by Morrisons in this position have low prices which
results in fewer profit margins. Cost minimisation is required for this strategy to succeed.
Position 3: Hybrid
Under this position, though the price of the different goods and services are low, product
differentiation can be identified which offers it a greater competitive advantage in the market
when such differentiation is sustained.
Position 4: Differentiation
Under the differentiation strategy, Morrison would strive to offer greater value to its customers.
For this position to succeed, effective branding and product quality is essential.
Position 5: Focused Differentiation
Under this positioning strategy, luxury brands provide high-perceived value at higher prices. By
using various promotional and distribution techniques, a higher profit margin can be attained.
Position 6: Risky High Margins
10
Thus, in order to realise the strategic directions of Morrisons, Bowman’s Strategy Clock Model
has been conducted below:
Bowman’s Strategy Clock Model
Bowman’s Strategy Clock is one of the most effective marketing models which assists an
organisation to examine and assess its current market position by comparing itself with its
competitors. The various positions for Morrisons according to the Bowman’s Strategy Clock are-
Position 1: Low Price and Low Value Added
Under this position, Morrisons will try to fix low prices for the different goods and services that
it offers. Its products are not distinguished and thus their value would be low. Such a position
will not offer a competitive advantage in the market for Morrison (Morrison, 2015).
Position 2: Low Price
The various goods and services offered by Morrisons in this position have low prices which
results in fewer profit margins. Cost minimisation is required for this strategy to succeed.
Position 3: Hybrid
Under this position, though the price of the different goods and services are low, product
differentiation can be identified which offers it a greater competitive advantage in the market
when such differentiation is sustained.
Position 4: Differentiation
Under the differentiation strategy, Morrison would strive to offer greater value to its customers.
For this position to succeed, effective branding and product quality is essential.
Position 5: Focused Differentiation
Under this positioning strategy, luxury brands provide high-perceived value at higher prices. By
using various promotional and distribution techniques, a higher profit margin can be attained.
Position 6: Risky High Margins
10
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Under this position, an organisation sets high prices for its various products and does not offer
any high perceived value or product differentiation and can be a risky approach, having high
chances of failure in the market.
Position 7: Monopoly Pricing
When an organisation identifies a monopoly in the market and provides its customers with
unique products, it will not think about the products price and value (Oldman, 2018).
Position 8: Loss of Market Share
Under this position, the company keeps an affordable price with a low perceived product value.
This results in customers avoiding to buy this product, as they do not perceive any special value.
This leads to losses for the company.
Figure1: Bowman’s Strategic Clock
Source: (Mindtools, 2019)
11
any high perceived value or product differentiation and can be a risky approach, having high
chances of failure in the market.
Position 7: Monopoly Pricing
When an organisation identifies a monopoly in the market and provides its customers with
unique products, it will not think about the products price and value (Oldman, 2018).
Position 8: Loss of Market Share
Under this position, the company keeps an affordable price with a low perceived product value.
This results in customers avoiding to buy this product, as they do not perceive any special value.
This leads to losses for the company.
Figure1: Bowman’s Strategic Clock
Source: (Mindtools, 2019)
11

Porter’ Generic Model
This model is used to examine and analyse the organisation’s profitability by its position. The a
greater competitive advantage can be attained by the organisation by emphasising on cost
leadership, differentiation and focus.
Cost Leadership
Under this positioning strategy, Morrisons would aim to produce its goods and services at lower
prices in order to attain a greater competitive advantage in the market. These include better
access to the different raw materials, use of technology and economies of scale (Morrisons,
2019).
Differentiation
Under this strategy, Morrisons would strive to provide a greater variety of unique products from
its rivals. This would help in attracting potential customers. A number of attributes would be
chosen in order to cater to the needs and preferences of the customers. It is a unique and an
effective positioning strategy for organisations.
Focus
Under this strategy, Morrisons might select a particular segment and create strategies
accordingly. In case of cost focus, the organisation emphasises on cost advantage and in the case
of differentiation focus, it emphasises to differentiate the target market. Therefore, it can be seen,
that these strategies are hugely dependent on the target market segment.
After an effective evaluation of the Porter’s Generic Model, Morrisons can be suggested to opt
differentiation strategy. This would be effective as in UK; there are stiff competitions in the retail
sector as there are numerous popular retail chains functioning in UK. It often adverse impacts of
such a stiff competition and therefore, it would be beneficial for them to offer differentiated
goods and services to its customers. This would help in sustaining the organisation’s brand
image and popularity. Morrisons has the potential of introducing innovative products and
services in order to attract new customers along with retaining the current ones (Peng, 2017).
6. Justification and recommendation of the most appropriate growth strategies available
12
This model is used to examine and analyse the organisation’s profitability by its position. The a
greater competitive advantage can be attained by the organisation by emphasising on cost
leadership, differentiation and focus.
Cost Leadership
Under this positioning strategy, Morrisons would aim to produce its goods and services at lower
prices in order to attain a greater competitive advantage in the market. These include better
access to the different raw materials, use of technology and economies of scale (Morrisons,
2019).
Differentiation
Under this strategy, Morrisons would strive to provide a greater variety of unique products from
its rivals. This would help in attracting potential customers. A number of attributes would be
chosen in order to cater to the needs and preferences of the customers. It is a unique and an
effective positioning strategy for organisations.
Focus
Under this strategy, Morrisons might select a particular segment and create strategies
accordingly. In case of cost focus, the organisation emphasises on cost advantage and in the case
of differentiation focus, it emphasises to differentiate the target market. Therefore, it can be seen,
that these strategies are hugely dependent on the target market segment.
After an effective evaluation of the Porter’s Generic Model, Morrisons can be suggested to opt
differentiation strategy. This would be effective as in UK; there are stiff competitions in the retail
sector as there are numerous popular retail chains functioning in UK. It often adverse impacts of
such a stiff competition and therefore, it would be beneficial for them to offer differentiated
goods and services to its customers. This would help in sustaining the organisation’s brand
image and popularity. Morrisons has the potential of introducing innovative products and
services in order to attract new customers along with retaining the current ones (Peng, 2017).
6. Justification and recommendation of the most appropriate growth strategies available
12
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