Strategic Management Essay Example | Topics and Well Written Essays - 1250 words - 2

strategical Management - Essay ExampleIn 1998, Somerfield, a supermarket group acquired Kwik fulfill in a exploit worth ?473 million (Somerfield, n.d.). They had faced huge competition when super store Tesco and Sainsbury launched their own brands. In addition, otherwise two discount houses Lidl and Aldi had excessively entered the retail market. Several stores were closed(a) around the United Kingdom and as a result the attach to went under administration. They also sold a few stores to Fresh Xpress but it was also under administration and ultimately all the stores were closed. Eventually, the entire of stores of Kwik Save closed in 2007 (Docstoc, 2010). Kwik Save had closed down 79 stores in order to survive in market. Kwik Save also sold its stores to Somerfield in 2006, and since then more problems aroused which resulted in lay off of several outlets, collapsing of sales as considerably as suppliers refusing to supply goods (Earth Times, 2011). The management of Somerfie ld realised that the outlook and inner look of Kwik Save stores would not decease well with the brand of Somerfield. They had warehouse style of inexpressive wooden shelving, space-saving undersized checkouts and thin passageway which infallible to be changed by Somerfield. Subsequently, Somerfield decided to maintain and fully renovate the 102 best stores although the remaining 248 stores were fixed up for closure (Somerfield, n.d.). ... The market share of Kwik Save cut down from 1.2 % in April 2006 to 0.2% in 2007 (Docstoc, 2010). 2.0 Causes of Strategic Problems The company was focussing more on acquisition rather than improving the existing operation. Poor thinking as well as decision-making has been the prime cause of their strategic business failure. The store was not achieving their target since it was naturalized (White Lane, n.d.). Firms Strategic Positioning Kwik Save was a successful market discount supermarket stove around the United Kingdom. They had developed the schema to sell branded product in a gilded rate to attract maximum numbers of customer. This strategy led to an amalgamation of low fixed exist as well as severe central control. All this were the outcome of network of above 870 handily located and unpretentious stores located around the UK. It adopted a no nonsense approach for grocery retailing. The customer money was provided importance thus they were charged low rate for the products. But in mid-seventies and 1980s, the entrance of super stores hindered their growth and they could not compete with those retail stores. Firm was successful in strategy positioning when no other highly discount based retailers were present but due to the outlet of superstore they were left behind. The superstores were providing importance to leisure, comfort excitement in the store but Kwik Save with its simple design, could not gain competitive advantage (Reference for Business, 2011). Firms Managers Analysis of the Environments of their Ind ustry Andersen Consulting was appointed by the managers of Kwik Save in order to conduct root-and-branch strategic review. Kwik Save was one of the Britains number one discounter but became