Being that I live in Colorado Springs, Colorado, which is considered to be a big city there are a lot of supermarket chains around the area. I decided to choose three chains that I felt have different business level strategies in order to gain a better grasp on the three questions. First, I chose King Soopers because it is considered to be the local supermarket or something the general population doesn’t consider to be a huge chain, but it in all actuality one can find it all over the nation. Second, I chose Wal-Mart because it is an obvious chain that people see as big business. Last, Sprouts is a grocery store in the area that we only have two of so it feels smaller, but it is a supermarket chain much like whole foods and it supplies the
…show more content…
It represents a differentiation strategy being that its product is the stores appearance. Differentiation strategy is defined as, “distinguishing an organization’s products from the products of competitors on dimensions such as product design, quality, or after-sales service. (207).” While one may walk into the store and think it is an every day grocery store King Soopers prides itself on having the feeling like it is actually in the community and apart of everyone’s day to day lives rather than Walmart’s cold everything white and the appearance of walking into a storage …show more content…
It has organic products for very low prices and it carries everything one would not find normally at a King Soopers or Walmart type facility. It also draws in a particular individual, which here in Colorado Springs there are a lot of and that is the health nut on a budget. That is why it falls under a focused low cost strategy. Focused low cost strategy is, “serving only one segment of the overall market and trying to be the lowest-cost organization serving that segment (208).” Sprouts serves those that wish to be healthy or go for particular brands of foods like those that are gluten and dairy free, but it also drives the prices of those products down. Its biggest competitor within the Colorado Springs area is Whole Foods and while they both sell organic items Sprouts is by far the cheapest out of the two.
The supermarket that would do best against this type of competition would be one that followed low cost strategy and differentiation strategy. Kings Soopers often attempts to do this, but falls short. A competitor of theirs Aldi is another supermarket chain that tends to have low costs and the hometown feel like King Soopers. They would be a very good competitor here in Colorado Springs and if they got the right location could make a lot off of this
It represents a differentiation strategy being that its product is the stores appearance. Differentiation strategy is defined as, “distinguishing an organization’s products from the products of competitors on dimensions such as product design, quality, or after-sales service. (207).” While one may walk into the store and think it is an every day grocery store King Soopers prides itself on having the feeling like it is actually in the community and apart of everyone’s day to day lives rather than Walmart’s cold everything white and the appearance of walking into a storage …show more content…
It has organic products for very low prices and it carries everything one would not find normally at a King Soopers or Walmart type facility. It also draws in a particular individual, which here in Colorado Springs there are a lot of and that is the health nut on a budget. That is why it falls under a focused low cost strategy. Focused low cost strategy is, “serving only one segment of the overall market and trying to be the lowest-cost organization serving that segment (208).” Sprouts serves those that wish to be healthy or go for particular brands of foods like those that are gluten and dairy free, but it also drives the prices of those products down. Its biggest competitor within the Colorado Springs area is Whole Foods and while they both sell organic items Sprouts is by far the cheapest out of the two.
The supermarket that would do best against this type of competition would be one that followed low cost strategy and differentiation strategy. Kings Soopers often attempts to do this, but falls short. A competitor of theirs Aldi is another supermarket chain that tends to have low costs and the hometown feel like King Soopers. They would be a very good competitor here in Colorado Springs and if they got the right location could make a lot off of this