MORRISION SUPERMARKET

Evaluation of Opportunity and Threats of “MORRISONS” Super Market

Evaluation of Opportunity and Threats of “MORRISONS” Super Market

Introduction

A SWOT analysis is an organizational tool used to identify or uncover strengths, weaknesses, opportunities, and threats affecting a company or its individual departments. Organizations can use a SWOT for a variety of different reasons, but it is commonly used as a starting point for developing a strategic plan, including goals and objectives. While decision making process SWOT plays a significant role by assisting the situation.

Opportunities and Threats

Conversely, opportunities and threats can be viewed as components external to the organization or department, over which the organization has no control. However, after an in-depth analyses of these factors businesses draft strategies to overcome the threats and exploit opportunities. Effective businesses are known for planning strategically by using its opportunities to outclass the threats.

Opportunities

According to Morrisons, out of an estimated 23 million household, there are nearly 6.8 million households in the UK who do not have easy access to a Morrison store. In order to fill this gap, Morrison has been expanding its retail presence throughout the UK. In FY2011, the company can increase its selling space through store extensions, and 15 new store openings, which included one replacement (www.guardian.co.uk). Furthermore, in July 2011, Morrison opened its first convenience store under the M-local banner in Ilkley, Yorkshire. The company will open two more convenience stores in 2011. One of the reasons for the company's accelerated retail expansion is its decision to extend the range of store sizes it operates. Currently, Morrison operates stores with retail space of 10,000 square feet to over 40,000 square feet (www.morrisons.co.uk). The flexibility in retail space has enabled Morrison to identify and acquire potential new sites. The company has also been expanding in the UK through acquisitions. Further in May 2011, Morrison entered into another agreement with Asda to acquire two more former Netto UK stores. Hence Store expansion would expand Morrison's market reach, and enable it to cater to a wider customer base (Voyle, 2003, p. 19).

While Morrison remains focused on its fresh food offer, it has started to address the non-food category. The company has plans to release space amongst their large stores through trailing new formats and making better use of the space it already has. The open space would then be made available for new products and categories. Most recently, the company added a garden ...