Loblaw in Canada’s Stagnant Grocery Market1 (Case study)

Loblaw Companies Limited (Loblaw) was at the stage of the critical deadlock in September 2016 due to the performance of the company in the last quarter which had been disappointing stage of the company. In the 2015 the sales of the food products had been grown by 2% while the net income of the company was down by 14.6%.

I am participating as the finance manager in the given case and performing the duties of the account and finance department. I am supervising my all tsk diligently and honestly. After the critical deadlock of the Loblaws, I am struggling to identify the problem which have become the reason for deadlock of the Loblaws.  

Identification of the problem of Loblaw in Canada’s Stagnant Grocery Market1 (Case study)

The well-known and well grown company which have performed as very good retailers in the market as well as the suppliers of the Wal Mart but unfortunately the company has been deadlock in the time period of the 2016 and the problem behind it the growth of the sales of the company was increasing day by day but the net income of the company was decreasing.  The biggest problem which the company has face that is related to the inflation rate of the food products in the market.  The owners of the company were getting worried about the prices of the products.  Loblaws which is known as the largest grocery retailer of the Canada it was facing the disappointed financial results according to its net income at 14.65 at the quarter of the year in 2015. The inflation in the food is significantly affecting the produces prices of the retailing products.

·         One of the problems of the largest grocery retailer as the Loblaw’s is the potentially over diversification of the products. It means the diversification is necessary after taking the feedback from the market.

·         The interaction of the unrealized acquisition of the revenue/cost is always reaming by the customers, shoppers as well as buyers of the company.

·         The other problem of the company is related to the insufficient growth of the revenue. As it is discussed before the net income of the company was continually declining.  

Analysis on Loblaw in Canada’s Stagnant Grocery Market1 (Case study)

All the grocery market of the Canada was dominated by the Loblaw which have 30.1 percent shares of the markets and the key rivals are Sobeys and Metro Inc which have 26.1 % and 10.6 respectively but the Loblaw was the top of these all companies and performing very well in the stick market.  The Loblaw has few of the dangers but the management of the company didn’t bother or think about these all threats of the company. Across the supply chain the margins of the sustained food inflation will be depressed and the management doesn’t have make any strategy for controlling the margin.  For the shared values the opportunities are decreasing in the low growth of the industry.  The management of the Loblaw have not taken in consideration to the clubs of the warehouse for the steel market share for their leading competitors. They have not bothered the competing prices. The number of the challenges are faced by the Loblaw for their changing competitive landscape.

Solution of the problems for Loblaw in Canada’s Stagnant Grocery Market1 (Case study)

Loblaw must be decided while for absorbing the increasing in the input prices particularly for those problems which are resulted from the inflation rate of the fresh produces prices. The Loblaw doesn’t sacrifice the margin for passing through the cost of the consumer. The Loblaw mu8sdt be introduce some types of the promotional activities related to the steep discounts which is expected by the consumers for the Loblaw. The Loblaw must be assumed its advantageous position for acquiring its size and stability for the reason that it has brand equity in the markets of the Canada. The Loblaw’s must be focusing on the increase penetration of an opportunity for the high growth and high margin for the organic and ethnic segments of food.  

Recommendation of Loblaw in Canada’s Stagnant Grocery Market1 (Case study)

By analyzing the whole case of Loblaw, I want to recommended for the company to uses total quality management effectively, that involves the quality management at all level in the company, include; production, customers, suppliers etc. This also permits Loblaw to regain competitiveness in the market to attain increased satisfaction of the customer. The Loblaw also uses this technique to constantly develop their products and services quality.  

It is also very important for the Loblaw to effectively manage the operations teamwork and also make sure that all staff members are involved in the process of production, it means that all employers in the Loblaw must be understands their roles, therefore it would also help the company in improving motivation and morale and increasing efficiency. In the company like Loblaw, the total quality management must be put into practice to increase the involvement of customer as a lot of organizations, together with Loblaw take pleasure in the chances to get information and feedback from customers. Loblaw businesses can use a lot of software or tools related to controlling the pricing strategy to shorten the potential diversification of the products. On the whole, by reducing costs and waste, provide Loblaw with a competitive benefit