A New Wave of Competitors - Case Study Example

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A New Wave of Competitors

The company mainly targets the wealthy and high income customers that have an average income that is at least 12 percent higher than the rest of the population and currently Reed owns 14 percent of the market share. Reed Supermarkets has a reputation of around 80 years for its service as a supermarket chain. Reed is now known nationwide and is serving a huge population. This creates a competitive advantage for the company and places them at an upper position relative to its competitors. The layout of the stores of Reed Supermarkets is attractively planned. Attractive stores and good service allowed Reed to differentiate itself from other competitors in the industry. Among the factors the most distinguishing are long store hours and short time for checkout, adequate number of staff, elegant and creative serving-case displays, extensive customer service and runners carrying bags of the customers to their cars. Customers are not required to provide tips to the staff while leaving. The places in which the stores are located show high population growth and even in many of these places, the growth rate of population is above the average rate of growth in the rest of the country. ...Show more

Summary

SWOT analysis for Reed Strengths Reed is well-known for the quality of products offered by it and has maintained the quality standard since its inception in the year 1939 without defaulting. The company emphasizes on offering organic produce and customers are also therefore willing to pay a premium price for such goods…
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