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Report on strategic analysis and position of the UK Cooperative

Group

Executive Summary

This report aims to make a strategic analysis of the UK Cooperative Group. Through the analysis of the external environment, the internal environment, the SWOT analysis and the strategic position, this paper makes some suggestions for the future development of this organization.

The report firstly gives the introduction of this paper’s purpose, then the operation environment this organization works in, the strength, the weakness, the opportunities and the treats it faces are done in the main body part. The strength of it mainly includes the largest geographic coverage, the strong bargaining power resulting from the CTRG and the good market image its value and faith bring. The weakness includes the weakness in the hypermarket and supermarket, the brand position is not so clear and the lack of the range of products. The opportunities include the quick development of the internet and the deceasing affording ability of the customers. The threats consist of the emerging of the online retailing and the penetration of the “big four”into the convenience sector. In the last part, the strategy position of this organization is suggested based on the previous analysis.

After the analysis, this paper thinks that in the austere economy condition of UK, the UK Cooperative Group can use its location advantage and its low cost advantage to compete in the market. At least, at this kind of condition, it can attract more price sensitive customers and build up its image. As this organization is in the retailing industry and it focuses on the convenience sector which is mainly the price sensitive customers’ market and providing the satisfied products with the satisfied price fro the customers is their main target, so the price leading strategy is the right one for it.

Table of content

1.0 Introduction (4)

2.0 The strategic analysis of the UK Cooperative Group (4)

2.1 The external environment analysis (5)

2.1.1 Macro environment analysis: PEST model (5)

2.1.2 Industrial analysis: Porter’s five force model (6)

2.1.3 Competitor analysis: Strategic group analysis (7)

2.2 The internal analysis (8)

2.2.1 Resource audit (8)

2.2.2 Value chain analysis (8)

2.2.3 The identification of the core competence (9)

2.2.4 The identification of the important stakeholder (9)

2.3 SWOT analysis (10)

2.4 The analysis of the three possible future strategy choices (10)

3.0 Evaluations and Recommendations of the three strategies (11)

3.1 The evaluations (11)

3.2 The recommendations (12)

4.0 The critical review of the models applied in this report (12)

5.0 Conclusion (13)

6.0 References (14)

(Words count: 2997)

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