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Reed Supermarkets: A New Wave of Competitors - Essay Example
Pages 5 (1255 words)
Reed is perceived to face intense competition from national and international food retailing companies. The development of the food retailing industry in the US has facilitated foreign companies to enter the national market segment with better and innovative products. …
Reed seeks to provide quality products to its customers which have in turn added to its high degree of customer loyalty. The outlets of Reed Supermarkets are attractive and offer services for long hours. Moreover, the outlets are decorated with well-designed serving-case displays. Reed has also adopted various promotional activities in order to improve its attractiveness amid customers which have increased customer preferences towards the organization. The employees of Reed are well-trained. Additionally, the organization follows a high-staffing level which ensures that customers are provided with quality services. Reports depict that Reed’s quality index has been stable at around 8.4 over the years 2008 to 2010. The margin was apparently better than many market players which reveal that the company has been able to obtain a leadership position in the industry. Weaknesses The customers of the market segment of Columbus are observed to be less loyal toward a particular product or company and thus, Reed may not be able to acquire a permanent base of customers. The customers of the food retail industry are price sensitive and are inclined towards low-priced products. These factors may affect the performance of Reed, as the products are offered at high prices. This can be observed with reference to the below chart. ...
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