Waitrose Analysis Essay

1239 Words Apr 26th, 2006 5 Pages
Environmental Fit Analysis

December 2002

prepared by andidas.com

Working for a management consultancy I have been asked to assist Waitrose in the analysis of its current competitive position and its macro environmental situation in order to aid in deciding possible future strategies.

Waitrose is operating in the UK grocery market, which in 2001 was estimated at £103.4bn. Food sales are the core business of the supermarkets and spending on food in the UK has been growing year-on-year since 1990; The market has proved to be very recession proof. However non-food articles account for a growing share. The market is led by the ‘big four' – Tesco, Sainsbury's, ASDA and Safeway. Together with Somerfield, Iceland and
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Own brand lines carry over 16.000 products. In 2001 ‘Perfectly Balanced' was introduced, a new range of 117 lines including cereals, sandwiches and fresh meals. It is promoted for a fresh and healthy lifestyle.

**According to a survey by Which? Waitrose is the leading supermarket chain in food quality and range. Only ASDA was rated better than Waitrose for value for money.

#Although an elaborate internet shopping system is in place Waitrose lags behind in this market share in online shopping (3%). ‘Waitrose incorporated its three existing Internet stations – Waitrosedeliver, Waitrose@work and Waitrose Direct – into an upgraded Waitrose.com portal in August 2001'1
Since October 2001, Waitrose was testing its proposed Ocado e-commerce venture, which was developed in conjunction with Last Mail Solutions and will commence when testing has been completed.

^Retail Partnership (see

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