Case Assignment #1 Loblaw in Canada's Stagnant Grocery Market Due to multiple factors, the problem Loblaw Company Limited is facing is the growing competition from Walmart and Costco. As an outside consultant for Loblaw Company Limited, I will be responsible for helping them identify the issues and advising them on how to solve them. To analyze the problem, I will look at the factors that are creating the problem. Loblaw’s “ancient like” business model is holding them back, as technology is advancing and pushing society forward, Loblaw needs to keep up. Food inflation has made it difficult to keep prices competitive and supplies are also increasing. Walmart and Costco’s competitive prices are also causing severe competition. Using the information from the readings of week two, we can …show more content…
This unique value allows Loblaw to appeal to Canadian’s patriotism. Loblaw has the value of its own no-name brand for price-sensitive consumers and the PC brand for higher-income Canadians. Loblaw also allowed customers to review their products on their PC website, integrating technology and allowing customers to give feedback, giving them the feeling that Loblaw cares about their opinions. Loblaw also has value due to its PC Plus loyalty program with around 6 million members and Shoppers Optimum loyalty program, which reaches one in every three Canadians. This creates brand loyalty as people are incentivized to shop at Loblaw Company Limited stores to collect points and participate in special deals. Loblaw has created a competitive advantage by offering many diverse stores. However, we live in a very fast-paced society where people want to do their chores such as grocery shopping, as soon as they can, to get back to work, take care of their family, or have leisure time. Walmart may not offer as many different stores as Loblaw, but they have everything one could need in one