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General Research, Industry History or News


 * __Traditional Features (zero or starting state - general points or theory, does not need to becompany specific)__**

// Location and lock in. // Proximity as a competitive advantage - shoppers tend to go to closest supermarket. A community will only support a set number of stores. Land meets the criteria of VRIO – Tesco’s aggressive policy of land purchasing. The development of location strategies and why they were so important research - organic method and land value model - inelastic supply of land and hard to move once established, expensive (rent) (sequential occupations - Garner). // Size (shelf space) // Supermarket is effectively selling the store to suppliers as somewhere to sell their goods. The more shelf space on offer the better (more choice = more customers (externality??)). As a result, supermarkets have a lot of power of their suppliers. The bigger they are, the more shelf space they can offer, the more power they have. This is very important in an industry where cost is the main driver of success. Tiered system for shelling shelf ends or “better” places allows supermarkets to segment the market (suppliers) and sell more competitively. // Environment (shopping experience) // Use the full shopping experience to reinforce and develop brand values (SCA). Store layout can be used to increase sales (e.g. flowers at the front of the store, bakery at the back, sales on shelf ends etc...).
 * Factor 1 -** ** Store Asset Value derived from: **


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 * __Implications of change__**

// Location and lock in. // On the internet, proximity is not an issue. All websites are effectively as far away as each other. Closest thing to virtual proximity is search engine optimisation to make your store be the first to appear when search for certain goods of services. Comparison websites. Internet also has effectively limitless capacity. Just because a competitor has created a website, does not mean that you cannot create one as well. As a result, this form of strategic lock in no longer meets the requirement of VIRO and cannot be used to gain a SCA. // Size (shelf space) // Whilst economies of scale still present a significant advantage in the market place, allowing the company power over suppliers, it is no longer derived from the physical store itself. Supermarkets are no longer selling shelf space to their suppliers in a physical sense, instead selling them a place on the website to sell their goods. With the physical store no longer being the asset on sale, all companies can effectively sell a limitless amount of shelf space. The value of this shelf space is now derived more closely from market share (visitors to the web site), than the number of stores that the product will appear in. This presents a challenge for companies that have invested heavily in a large number of stores and land. // Environment (shopping experience) // By it’s nature, an online store does not offer a “full” shopping experience as it cannot stimulate all of a person senses. This makes it harder for competitors to differentiate themselves within the marketplace. It requires less effort to navigate a virtual store for the first time as the customer is not physically travelling around the store. The use of search functions allows for quick accessing of goods, without needing prior knowledge of the store layout.
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 * __Comparisons Grid (response to change state)__**

enabled Tesco to use in store distribution. High on rankings of sponsored links on Google. High on organic listings. Made site deliberately hard to navigate and learn. Combination of tech resources, Capabilities and complementing to create a SCA. ||= 2nd in SEO listings Argue that they have a service focus? Reasons for outsourcing? ||= 3rd in SEO listings Wharehouse distribution. ||
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 * = F1 ||< Valuable Resources ||= Still value from stores as
 * = F2 ||< Customer Retention ||=  ||=   ||=   ||
 * = F3 ||< Cost effeciency ||=  ||=   ||=   ||
 * =  ||=   ||= Tesco ||= Ocado ||= Asda ||