CO-OPERATIVE FOOD BUSINESS

Co-Operative Food Business

Co-Operative Food Business

Introduction

The Co-operative food, abbreviated as Co-op, is a brand that has been devised for supermarket and convenience store business in UK. It is a part of The Co-operative group. Co-operative food is the successor of the Co-op Welcome and Co-op Late Shop. It is the fifth biggest food retailer in UK, and a leading convenience store. It has over 3,300 stores around UK. The Group decided not to compete with the Big Four Supermarket operating in UK; i.e., Tesco, ASDA, Sainsbury, Wal-Mart on price and range in the market as it was becoming more competitive and harder to survive. They decided to focus on smaller stores in local communities (UK Convenience Store Competitors Analysis, 2011).



PEST Analysis

Political Factors

Co-operative food business is functioning well and providing services with its stores all around the world. For the legislation of employment, the government promotes retailers to supply a blend of job openings from low paying stretchy and locally-based jobs to centrally-located, skilled and high paying jobs in order to meet the needs of the students, working parents and senior citizens (Lancaster & Reynolds, 2005, 125-129).

Economic Factors

One of the major, significant features on the economy is excessive redundancy points, which reduces the efficiency, requirement for several goods, negatively distressing the production demand. Thus, Co-op would be poorly influenced by any slowdown in the United Kingdom food bazaar and are open to the threat in the concentration of the market.

Social/Cultural Factor

Demographic modifications for instance the aged people, female employees and home cooked meal preparation also show that UK dealers have been concentrating on services and added value goods.

Technological Factors

Technology is among the main contributor's in the progress of Co-op service. Technology made it easier for customers to buy things easily, and making the shopping experience more convenient and personalized.

Environmental Factors

Co-op's business communal accountability is pertained with the manner in which a business surpasses the least compulsions to stakeholders identified through directive and commercial authority (Christchurch, 2006, pp.958-64).

Competitive Factors

The competition involves three key aspects:

The economic rationale for corporate resources is managed under economic criteria, to achieve high productivity.

Ability to coordinate and adapt to the environment as the company has to respond quickly and flexibly to their markets, but can be displaced by competitors

Leadership and organization to achieve high efficiency of the company.

In order to achieve a high level of competitiveness in the market, their strategy is to obtain a high level of efficiency and productivity in the company, allowing them to achieve greater competitiveness against other companies who are ultimately their rivals. (Armstrong & Kotler, 2003, 74-79) A competitive advantage will facilitate the market penetration and to put it in a privileged position in the market, therefore they will attract more customers. For a competitive advantage, with a high degree of effectiveness and a greater degree of success, will require that competitive advantage that is also sustainable, i.e. that the company keep it for a while. Also, when a company gains some competitive advantage over others, they have to be ...