Similar Organisations Operating Within the Same Business or Public Sector Environment May Adopt Quite Different Strategies in Their Response to Shared Environmental Circumstances and Trends. Critically Review Possible


In this assignment I am going to examine two well known supermarkets of UK, which are operating within the similar business environment, and yet, adapting very different strategies. This assignment will critically highlight possible reasons behind this, by looking at Michael Porter’s SWOT analysis.

Supermarket history and industry background

“A supermarket is a self-service grocery outlet that sells food, beverages and other goods. They are located on urban high streets or in shopping malls, covering an area of between 4,000 - 25,000 square ft. They are located on urban high streets or in shopping malls. Over the last 10-15 years, many have developed branches in out-of-town or edge-of-town locations.” (Corporate Watch, 2007)

The starting point of the UK supermarket industry dates back to the 1850s. About 40 years on multiple food stores later accounted for around 50.0 per cent of all multiple stores. Their growth can somewhat be explained through the increased style in marketing themselves and their products through visually impressive displays, also the development of national brands and direct advertising to consumers. After the launch of big chain stores all around the UK, followed very fast on the heels of earlier US progress. At the first place, it was been resulted by mergers between grocery firms and home & colonial stores in 1920s moving towards to more than 3,000 branches. Which has been slow down in rapid growth during Second World War, when supermarket industry growth with the new addition of self service and economies of scale. (Economics. Network, 2007)

From the low hundreds in the 1950s to 4500, which become 7144 stores by 1998/99.
(Competition Commission, 2000) The structure of industry had also been changed by the slow but sure shift from a market which is local dominance to national dominance. In 1998/99 the market

Share of the top four giant supermarkets which are Tesco, Asda, Sainsbury, and Morrison was...