1. Political:
“We must comply with numerous provisions regulating health and sanitation standards, food labeling, energy, equal employment opportunity, minimum wages and licensing for the sale of food, drugs and alcoholic beverages.” Page 16
Assessment:
Laws and regulations are subject to change and this can heavily impact Safeway Inc. procedures. Safeway needs to uphold to regulation and sanitation standards passed down by the government, even though Safeway may not know what changes will be made next year or the year after that, they still need to submit to these changes. Neglecting them will resolve in severe consequences. These can lead up to criminal charges being filed and they may lose their licenses. Furthermore, enabling Safeway Inc. …show more content…
Intensity of Rivalry:
“We face strong competition from traditional grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty and niche supermarkets, drug stores, dollar stores, convenience stores and restaurants.” Page 12
Assessment:
Safeway is in a very competitive industry. They will face many challenges related to differentiating their products and services from others, low concentration as the industry is fragmented, this implies that they will have severe price competition, low growth rate, and decreases in demand as many of their consumers will go to their competitors to buy similar products.
8. Threat of New Entrants:
“We face intense competition from traditional grocery retailers, nontraditional competitors such as supercenters and club stores, as well as from specialty and niche supermarkets, drug stores, dollar stores, convenience stores and restaurants.” Page 11
Assessment:
The threat of new entrants into the grocery retail industry, is established by measuring the potential of profitability the business can make. Once these threats arise, the prices of other companies will be pushed down basically in the supply and the …show more content…
Substitutes are not necessarily products that have similar form as present products but are those that accomplish the same function. Consumers can buy food anywhere they want like from our competitors for instance in restaurants and convenience stores. These are of no threat to the company as they usually charge higher prices for the same or similar products found in Safeway. Multiple factors that do play a role in affecting the company are a consumer’s preference and the relativity of the prices. Safeway tries to meet customer’s preferences by still providing their high quality products at a reasonable
“We must comply with numerous provisions regulating health and sanitation standards, food labeling, energy, equal employment opportunity, minimum wages and licensing for the sale of food, drugs and alcoholic beverages.” Page 16
Assessment:
Laws and regulations are subject to change and this can heavily impact Safeway Inc. procedures. Safeway needs to uphold to regulation and sanitation standards passed down by the government, even though Safeway may not know what changes will be made next year or the year after that, they still need to submit to these changes. Neglecting them will resolve in severe consequences. These can lead up to criminal charges being filed and they may lose their licenses. Furthermore, enabling Safeway Inc. …show more content…
Intensity of Rivalry:
“We face strong competition from traditional grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty and niche supermarkets, drug stores, dollar stores, convenience stores and restaurants.” Page 12
Assessment:
Safeway is in a very competitive industry. They will face many challenges related to differentiating their products and services from others, low concentration as the industry is fragmented, this implies that they will have severe price competition, low growth rate, and decreases in demand as many of their consumers will go to their competitors to buy similar products.
8. Threat of New Entrants:
“We face intense competition from traditional grocery retailers, nontraditional competitors such as supercenters and club stores, as well as from specialty and niche supermarkets, drug stores, dollar stores, convenience stores and restaurants.” Page 11
Assessment:
The threat of new entrants into the grocery retail industry, is established by measuring the potential of profitability the business can make. Once these threats arise, the prices of other companies will be pushed down basically in the supply and the …show more content…
Substitutes are not necessarily products that have similar form as present products but are those that accomplish the same function. Consumers can buy food anywhere they want like from our competitors for instance in restaurants and convenience stores. These are of no threat to the company as they usually charge higher prices for the same or similar products found in Safeway. Multiple factors that do play a role in affecting the company are a consumer’s preference and the relativity of the prices. Safeway tries to meet customer’s preferences by still providing their high quality products at a reasonable