Strategic Approaches to Competitive Advantage in Retail

The retail landscape is highly dynamic, requiring companies to adopt innovative strategies to sustain their competitive advantage. This essay examines key approaches such as product diversification, which allows retailers to cater to varied consumer needs and mitigate risks associated with market fl...Read More

Running head: MARKETING RESEARCH
Marketing Research:
Name of the student:
Name of the university:
Author note:

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Executive Summary
This is a study, which will compare the marketing mix of two retail companies in United Arab
Emirates. The two rival companies that have chosen for the study are Landmark and Emke.
These two companies are the fastest growing companies in United Arab Emirates and have been
included in the top 50 fastest growing global retail organizations. Emke group, which consist of
Lulu Hypermarkets, are the 9th fastest growing retail chain in the United Kingdom and Landmark
is the 16th fastest growing retail chain in the world. Even though the growth rate of Emke group
is more than Landmark, the market share and revenue generation of Emke in these sectors is less
than Landmark. Landmark is ranked at 198th position among the top 250 retail companies in the
world and Lulu hypermarkets is ranked 213th among the top 250 retail companies in the world.
Thus, by linking with the objective of the study it can be highlighted that marketing mix of both
the organizations are similar in nature as they operate in the same market. Moreover, as their
macro environment factors are same, they are using similar strategies to mitigate their market
risk. However, they have a lot of opportunity of improving their scope in the market by using
innovative marketing strategies for increasing their penetration in the market.

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Table of Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................6
Research methodology...................................................................................................................13
Findings and analysis.....................................................................................................................15
Conclusion.....................................................................................................................................21
References......................................................................................................................................23

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Topic: A comparative analysis of the marketing mix of Emke and Landmark in retail sector
Introduction
This is a study, which will compare the marketing mix of two retail companies in United
Arab Emirates. The two rival companies that have chosen for the study are Landmark and Emke.
These two companies are the fastest growing companies in United Arab Emirates and have been
included in the top 50 fastest growing global retail organizations. Emke group, which consist of
Lulu Hypermarkets, are the 9th fastest growing retail chain in the United Kingdom and Landmark
is the 16th fastest growing retail chain in the world (Landmark Shops 2017). Even though the
growth rate of Emke group is more than Landmark, the market share and revenue generation of
Emke in these sectors is less than Landmark. Landmark is ranked at 198th position among the top
250 retail companies in the world and Lulu hypermarkets is ranked 213th among the top 250
retail companies in the world (Editor 2017). Thus, it shows that there is growth in the retail
industry and the companies can maintain their sustainability and increase their market share if
they are able to provide the consumers with good quality product at affordable prices
(Lulugroupinternational.com 2017). Both the organizations have been able to expand their
businesses in the gulf region and have the opportunity of further expanding their business in the
overseas market.
The retail industry in United Arab Emirates is booming in nature and the market is
expected to grow even more by the end of 2021. The value of retail industry in UAE is $56.6bn
and turnover of sale in the market till the end of 2021 is supposed to be around $71bn (Sadaqat
2017). Thus, various researches shows that the retail industry is suppose to grow at a rate which
is around 5% in the market. Moreover, the retail industry has a considerable contribution to the

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economy of country and the retail industry contributes 11% to the GDP (Frank 2017). The
demand in the retail sector in the UAE remained stable in the fiscal year of 2016 and increase in
the footfall in this sector increased by 6% (AMEInfo 2017). The rise in the number of tourists in
the country has supported the growth of the industry due to the lack of sales tax and expansion in
promotion and sales events. Thus, this shows that there has been a steady increase in the volume
of sales and the number of consumers in the retail industry. The infrastructure in this industry is
expanding at a rapid rate, which shows that the companies are positive about the growth in the
market.
Competitor analysis is used to position the organizations strengths against the weakness
of the competitors in the market or the organization chooses position which poses no potential
thereat for the organization. This means that it is essential for the organization to be aware of the
strengths and weaknesses of its competitors as much as they are aware of the needs and desires
of the consumers in the market (He et al. 2015). The main objective of the competitor analysis is
to identify the strengths and weaknesses of the organization so that they can predict their next
move. The competitive strategies are developed based on the analysis of the competitors in the
market. This enables them to take counter measures for gaining competitive advantage and
maintain their long-term sustainability in the market. Thus, the organization should have a better
understanding of the market conditions so that they can analyze the actions that the competitors
can take. The main objectives of the competitor analysis for any organization are as follows:
 Calculate the potential strategies available to the consumers that could provide them with
success in the market
 Predicting the counter measures which the rival company can take

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 Identifying and understanding the reaction of the rival organization to the changes in the
market
However, it is essential to identify the competitors in the market if they want to gain competitive
advantage in the market and there are two approaches, which are used by the organizations so
that they are able to identify the market competitors. The first approach is the based on the
supply side, which tries to identify the similarity in technology, resources base and operations of
firms working in the same market (Frösén et al. 2016). The second approach is based on the
demand side, which tries to identify the organization fulfilling the similar needs of the consumers
in the market. However, the organizations will have to focus beyond the immediate competition
in the market and will have to consider the indirect competitors in the market. Therefore, the
sources of this type of then competition can be ind3eified with the help of three domains and
consist of the areas of interest, contingent areas and areas of influence (Calvo-Porral and Lévy-
Mangin 2014). Contiguous industry will consist of the companies who are selling substitute
products of the organization, the area of interest consist of the companies, which have similar
resources and capability of fulfilling the needs of the target consumers in the market. The area of
influence consists of the firms, which are in the dire ct vicinity of the organization and will affect
t6he organization directly.

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Literature review
The competitor analysis of the study will consist of situational analysis and the internal
analysis of both the organizations. However, the situational analysis will consist of both macro
and micro environmental analysis of the organizations, which consist of PESTLE and Porter’s
five forces. The internal environment analysis will consist of SWOT analysis and thus, amount
of factors that are included in the study are huge which make the analysis quite thin. Thus,
integrated model will be used which will consist of SWOT, Pestle and Porter’s five forces at the
same time (Yu, Ramanathan and Nath 2014). The study will attempt to link all the environments
together to provide a better result in the study. The macro, micro and the internal environmental
an analysis of the organization can be linked together as it is examining the positives and
negatives of the organization. However, the organization does not have any control on the
external environment of the organization and cannot avoid its impact. The microenvironment and
the internal environment can be controlled by organizations, which mean that the organizations
will have to put focus on the internal environment.
Pestle analysis is a framework, which is being used by the marketers for identifying the
macro factors in the market. The word PESTLE stands for Political, Economic, Social,
technological, Environmental and Legal factors of the organization.

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Figure 1:
(Source: Zalengera et al. 2014)
The political factor will analyze the degree of intervention made by the government in the
market economy. This will consist of political stability, government policies, tax policies, foreign
trade policies, environmental laws, trade laws and restrictions in trade (Zalengera et al. 2014).
Thus, the organizations will be impacted by these factors and will have to comply with the
government policies if they want to operate smoothly in this environment.
The economic factor will have significant impact on the growth of the organization and
will consist of factors such as interest rate, growth rate, disposable income, economic growth and
inflation. The above-mentioned factor can be further divide in to micro and macro economic
factors, the macro factor will analyze the demand in the market economy, which will consist of
factors such as government expenditure, taxation policies and interest rate control (Qiu 2014).

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The micro economic factors will analyze how the people will make their expenditures and this
affects mostly the business to consumer organization in the market.
The value and shared beliefs of the population of the country are different so the
organization will have to understand these factors in order to fulfil the needs of the consumers.
These will include factors such as career attitude, health consciousness, population growth and
age distribution ((Zalengera et al. 2014). Thus, analyzing these factors will help to identify the
driving factors of the target segment in the market.
Technological advancement is one of the major factor which will affect the organizations
as they will have to keep on using innovation if they want to maintain their long term
sustainability and competitive advantage in the market. This will include factors such as
innovation in the production procedures, innovation in the communication procedures and
innovation distribution processes.
Environmental degradation is a major concern of the government in most of the industry
especially the industries, which are resource dependent. Thus, government in all the countries
have set benchmarks of the industries, which is aimed at protecting the corresponding
environment (Qiu 2014). Thus, the demands for the products, which are developed on ethical
basis, have increased significantly.
Many legal factors are associated in the market in which the organizations operate. This
will include health and safety, consumer rights, advertising standards and product safety. Thus, it
is essential for the companies to be aware of the factors that are illegal in the market so that they
can conduct trade without any hindrance. Each country has their own sets of legal laws so the

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organizations that are operating at the global market should understand the limitations and
boundaries of their operations.
Porter’s five forces is a model used by the organization for understanding the market
attractiveness of the industry and the factors, which may cause problems of the organizations in
the industry. This is generally used by the organizations that are entering in to a new market so
that they can identify the viability of the market (Dobbs 2014). The five factors that are analyzed
includes factors such as bargaining power of the supplier, bargaining power of the buyer,
competitor analysis, threat of new entry and threat of substitution.
Figure 2:
(Source: Dobbs 2014)

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The bargaining power of the suppliers identifies the extent to which the supplier can
increase the prices, the uniqueness of the products offered, the number of suppliers in the
industry and switching cost of moving from one supplier to another. Competitor rivalry will
identify the strengths and weaknesses of the competitors in the market, the major competitors in
the market and the quality of the products they are offering to the consumers (Dälken 2014).
Thus, the organization can analyze their strengths and weaknesses with that of the rival
companies in the market. The bargaining power of the buyers will analyze the extent to which
the buyers can drive the prices in the industry, market size, volumes and switching cost of the
consumers (Rothaermel 2015). This will enable the organization to identify the needs and wants
of the consumers. The threat of substitution will identify the substitute products available in the
market. Thus, if the substitution of the product is easy for the consumers then it will pose a threat
to the organizations (Dälken 2014). The last factor is identification of threat from the new
entrants in the market and it will identify the entry barriers in the industry. Thus, if the entry
barriers in the market are low it will pose more threat to the organizations and if the entry
barriers in the market are low it will pose a threat to the companies in the market.
SWOT analysis identifies the internal strengths and weaknesses of the organization and
external opportunities and threats (Yan, Xia and Bao 2015). Thus, the framework is used for the
development of the strategies for identifying the deficiencies so that they can make continuous
improvement of the processes in the business model.

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Figure 3:
(Source: Yan, Xia and Bao 2015)
However, in this study, it is difficult to accommodate all the three frameworks separately
and so an integrated framework is created, which will analyze the market competition for the
chosen organizations. Thus, the integrated model will consist of both internal organizational
drivers and the external organizational drivers. The internal organizational drivers will consist of
factors such as core competencies, organizational resources, value and supply chain management
and emerging technology (Leiber 2017). The external organizational drivers will consist of
factors such as bargaining power of the suppliers, bargaining power of the buyers, threat of
substitute products, threat of new entrants in the market, local and global economy, government
influence and culture. These factors are the elements of PESTLE and Porter’s five forces and
these factors are the basis of the identification of the various factors in the SWOT analysis.

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Figure 4: Integrated Model
(Source: As created by Author)
The factors measured in the above diagram shows that these factors can be both be a
strength and weaknesses for the organization. These weaknesses will provide opportunities for
the organization to improve the factors in which the organization is lagging. Moreover, the
weaknesses of the organizations can prove to be a threat for the companies in the market. These
integrated frameworks can provide an accurate competitor analysis of both the organizations in
the market.
Strength Weaknesses
Opportunities Threats
Core competencies (tangible
and intangible resources
Supply/value chain performance Emerging technologies
Economy, culture and
government
Threat of substitutes
Threat of new entrantsBargaining power of the
suppliers
Bargaining power of buyers

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Research methodology
Research methodology is one of the most important parts of the study and it consists of a
range of designs, methods and approaches. The selection of the appropriate method in the study
will have a lot of significance in the study. The identification of the methodology of the study
will have significant importance but implementation and execution of the method is equally
important (Mackey and Gass 2015). The report will consist of the negatives and positives of the
methods and techniques that have been used. The research methodology will have to be
alignment with the objective and goals. A fixed set of assumptions and model have been taken
into consideration for fulfilling the objectives. Moreover, it has to be made sure that reliability
and validity of the study is high.
Research philosophy enables to indentify the techniques, which will be suitable for the
execution of the study. There are generally four types of research philosophy, which are used in
the study and they are positivism, post positivism, realism and interpretivism (Flick 2015).
However, in this present study positivism is the research philosophy, which is ideal for the study.
Positivism is a study, which will provide description based on the observation and will assist in
revealing the hidden facts in the study. There are mainly two types of approaches in research
methodology, one is the inductive approach and other is the deductive approach (Silverman
2016). The inductive approach is used for the formulation of new theories and generalizations
where as the deductive approach is used for validation of the existing theories. In this current
study, no new theories are formulated and the existing theories are validated so the deductive
approach should be the appropriate method for the study.

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The data collection method will consist of secondary analysis of data which will be taken
from the peer reviewed journal and articles. The study will use two types of secondary analysis,
one is the thematic analysis and other is the case study analysis. The thematic will create
different themes based on the objective of the study and the case study analysis will consist of
analysis of various cases from different organization (Best and Kahn 2016). Thus, these methods
will be able to provide a different dimension and better result for the study. The analysis part will
consist of the integrated framework, which will link the SWOT, PESTLE and the Porter’s five
forces of both the organizations. The comparative analysis will provide the exact strategic
requirements for both the organizations so that they can gain competitive advantage in the
market. Therefore, based on these factors, the case study method will provide instances from
different organizations in order to identify the adequate strategies that should be used (Palinkas
et al. 2015). The secondary analysis will consist of numerical data from the selected journals and
articles, which will be analyzed to provide recommendations for the study.
Sampling is a method, which is used for selection of the population size for analysis.
However, in this current study secondary data is used so sampling is not required but simple
random sampling can be used for choosing of the various articles and peer reviewed journals.
Thus, even though sampling can be used in the study, there is no basic need of using the
secondary data (Zainal 2017). Reliability is the ability of study to use suitable instruments to
obtain precise and accurate results each it has been used. It is essential to maintain a high degree
of reliability in order to gain suitable result in the study. When all the needs of the business
research method is fulfilled then it is called the validity of the study. Validity can be considered
to the accurate interpretation and use of the business research method for the study. Ethical

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aspect of the study has been kept intact by maintaining the privacy of the data that has been used
(Alvesson and Sköldberg 2017).
Findings and analysis
Integrated model
LANDMARK Strengths Weaknesses Opportunities Threats
Core
competencies
Efficient tangible and intangible
resources, strong supply chain
management

Emerging
technology
Use of latest technology to
incorporate innovation in to the
business model

Economy, culture
and government
Individual government
organization in each of the 7
emirates that provides
flexibility, instability in the
government due to conflicts
with the neighbouring countries
in respect to ownership of oil,
very high GDP, rate of
unemployment is low and FDI
investments are highest in that
region, society consist of strict



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religious norms for women and
consist of diverse population
due to the emergence of
globalization
Threat of new
entrant
Rapid growth in the industry so
threat of new entrant is high 
Threat of
substitutes
Threat of substitution in the
market is moderate  
Bargaining power
of the suppliers
Bargaining power of the
suppliers are low due to the
availability of large number of
suppliers

Bargaining power
of buyers
Bargaining power of the buyers
are high as they have a lot of
options in the market and the
switching cost is low
  
Supply/ value
chain process
Strong supply chain processes,
use of enterprise resource
planning, using different forms
of transportation modes to
maintain on time delivery, good
inventory management.

Table 1

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(Source: Khan and Kenneth 2017)
EMKE GROUP(LULU HYPERMARKETS) Strengths Weaknesses Opportunities Threats
Core
competencies
Availability of capital and
liquidity, strong infrastructure
and supply chain management,

Emerging
technology
Use of latest technologies, use
of innovation in to the business
model of the organization

Economy,
culture and
government
Individual government in each
of the emirates, instability in
the government due to issues
with the neighbouring countries
over accusation of oil, High
GDP, low rate of
unemployment, FDI high, high
disposable income, religion
norms and regulations are rigid
 
Threat of new
entrant
Rapid growth in the retail
sector and entry barriers in the
market are low, FDI is high so
availability of liquidity in the

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market and so preferable for
new market entrants

Threat of
substitutes
Threat of substitution is
moderate in the market 
Bargaining
power of the
suppliers
There are lot of buyers in the
market so the buying power of
the suppliers in the market are
low

Bargaining
power of buyers
The bargaining power of the
buyers in the market are high
due to availability of similar
products in the products and
the cost of switching is low
 
Supply/ value
chain process
Strong supply chain
management and use of
technology to make continuous
improvements in the
operational processes of the
organization, expansion in
warehouses to enable better
management of inventory in
the market

Table 2

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(Source: Khan and Kenneth 2017)
Comparative Analysis and Evaluation
Thus, from, the above tables it can be said that both the companies are using similar
strategies to gain competitive advantage in the market and due to the rapid growth in the market
segment both the organization are able to make expand their business freely. Moreover, it can be
seen even though there is political instability in the country, the amount of foreign direct
investment are high. This shows that the geographical location and stability in the economy, it is
easier to sustain in the market due to high disposable income of the general population. Thus, if
the organizations are able to market their products in the right way, it will enable them to acquire
more consumers in the market. Thus, as the market is suitable for the growth of the retail sector
there are large number of companies in this segment. These companies are the two major
companies in the segment in UAE and so due to the advancement of the technology it is easy to
duplicate the products and the processes of the various organization. Thus, the organizations are
not able to maintain their competitive advantage in the market for a long time and they need to
make use of innovation in their business model in the continuous basis. Thus, due to the
availability of so many resources in the market, the level of competition in the market will keep
on increasing which will lead to saturation the market.
The growth of Emke is higher in the market than Landmark and this is because growth of
landmark is reaching a saturation point. Thus, they will have to keep on innovating their products
and launch new products in the market if they want to keep on increasing their growth rate. The
annual revenue generated by Landmark is higher than that of Lulu Hyper markets and they are
ahead of the Emke group in terms in terms of the top companies in the market. However, it is

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evident that Emke group will be able to catch up to Landmark in no time as both of them are
using similar strategies and providing products at reasonable prices. Thus, creating a niche
market is the only way of gaining competitive advantage in the market. Thus, it is essential to
identify the needs and wants of the consumers’ so that they can customize the products.
Therefore, segmentation of the market, targeting and positioning will be able to identify the
target consumers, which the organization wants to cater. However, trends in the market are
changing at an rapid rate and as both of these companies have entered in to the global market it is
very much essential for them to develop their unique products so that they can competitive
global giants in the market. On the contrary, identifying the trends is not enough for the
organizations to gain competitive advantage in the market and thus, both the organizations will
have to identify the upcoming trends and implement it in to the business model. However, as it
can be seen from the analysis of the integrated model that both these companies are already using
these policies to gain competitive advantage. Thus, adding value to the product they are offering
is one of the essential components of maintaining sustainability in the market. Thus, gaining the
loyalty of the consumers will be crucial in this situation and it can be obtained by using different
strategies such as rewards and additional benefits.
Thus, the organization will have to develop an understanding of the demand
landscape, which will enable them to identify the present wants and needs of the consumers in
the market. Moreover, the organizations will have to analyze the demand landscape to identify
the perception of the consumers towards a particular product. Customer experience management
is one of the essential factors, which has to be accommodated in to the business model of the
organizations. Thus, evaluation of the experience of the consumers will enable the organization
to identify the loopholes in the products. Thus, the desired attributes in each of the products can

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be identified with the assistance from customer experience management. However, in order to
maintain their sustainability of the organization, they will have to introduce new products in the
market. thus, as the life span of each of the products in the market are decreasing, the
organization will have keep on launching new products and use aggressive marketing strategy to
penetrate further in the market. Moreover, workforce in every organization is unique and
effective maintenance of workforce is essential for gaining competitive advantage. Thus, the
organization will have to make improvements in the quality of the workforce so they can
improve the operational efficiency. Moreover, reduction in the cost of the supply chain
management will increase the profit margin, which can be achieved by using vertical integration
in to the business model. The macro, micro and internal analysis of both the organizations have
provided valid findings. These indicate that marketing mix of the companies, are similar as they
are operating in the same market and have similar target segments. Thus, innovation in product
development and promotion is needed to gain competitive advantage. However, continuous
innovation is required so the organization can avoid duplication of strategies and products.
However, place can be a major advantage for the organization so they will have to identify
suitable location which will attract more number of consumers in the market.
Conclusion
Thus, from the findings and analysis of the data it can be concluded that Emke should use
innovation and vertical integration if they want to gain competitive advantage. The organization
will have to use market orientation to promote their products in a better way and use social
media to connect more with the consumers. Moreover, they will have to develop their unique
selling proposition and add value to the products so that they can attract more consumers. This

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may include additional facilities such as providing better and bigger parking space, reward
systems, loyalty cards and events. The main objective of the study is providing comparative
analysis between Lulu hypermarkets and Landmark to identify suitable strategies, which Lulu
hypermarkets can use to increase their market share. ALDI is a German retailer who has been
able to gain majority of the market share by providing consumers with quality products at
cheaper prices. They have used vertical integration to decrease their cost structure and provide
products at cheaper prices than the competitors in the market. This strategy can be used by Lulu
hypermarkets as they have a strong supply chain management.
The diversification of the product portfolio is another solution, which can be used by
Lulu hypermarket. Diversification will enable the organization to understand the market they can
excel and getting response from the market. Thus, these products can be used to increase the
sales volume and provide the organization with more liquidity. Research and development is
another important aspect and Lulu hypermarkets will have to spend considerable amount of
capital on the research so that they can develop new technologies to innovate the products in
their business model. Product innovation and business model innovation are the two key aspects
in maintaining the sustainability in the market and continuous improvement can only be obtained
by using innovation. Thus, by linking with the objective of the study it can be highlighted that
marketing mix of both the organizations are similar in nature as they operate in the same market.
Moreover, as their macro environment factors are same, they are using similar strategies to
mitigate their market risk. However, they have a lot of opportunity of improving their scope in
the market by using innovative marketing strategies for increasing their penetration in the
market.

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