Strategic Expansion and Chain  Management: A Critical Appraisal for Morrison Super Market

Introduction

This report is critically analyse the Morrison Supermarket’s strategic expansion and change management initiatives. It conducts a review of the company’s beliefs, goals, and objectives, and supplements that with a SWOT analysis, to understand the company status and the areas of improvement. Further to this, a host country’s state examination by the help of a PESTLE analysis and a Porter’s Five Forces analysis will outline internal elements affecting expansion decisions. Report will focus on evaluating the firm’s current strategy and to provide recommendations.

Background of Morrison Supermarket

Morrison’s supermarkets started as a fresh produce supplier in London market stalls during 1899 established by one of its founders, William Morrison (Jones and Comfort, 2019). Throughout the last century, the business has become one of the longstanding giant operations in the provision of retail services with a chain of over 500 stores on a national level (Toms, 2015). Gaining its recognition for a rich variety of high quality, yet affordable products, Morrison’s now has respectable customer following (Toms, 2015).

The business builds its mission around giving a good cost to benefit ratio to the price of its products. The strategic partners, both in getting materials and in manufacturing branded products like the smartwatch they recently introduced, help in achieving this (Toms, 2015). For instance the supermarket chain also heavily emphasises customer satisfaction as they work tirelessly to providing a premium service for the customers as they have different training and development projects for their staff (Jones and Comfort, 2019). This customer-centered strategy had played a part in proving convenient and cozy for the customers, being one of the main factors for the supermarket’s prosperity in the dynamic retail market.

Vision

Morrison Market’s vision is founded on its foremost objective of being an irreplaceable preference for consumers, by continually offering top value, service, and quality. This vision recognizes the organization’s dedication to customer service and the strategic positioning within the retail sector in particular (Jones and Comfort, 2019). Morrison strives to become customers’ favorite supermarket amongst all the others. To achieve that, it strengthens trust, repeat purchases, and value through customer relationships.

Mission

The mission of Morrison Supermarket which goes hand in hand with its vision is about delivering top quality products to the customers as well as offering them the right services and reasonable prices (Haleem and Jehangir, 2017). The objective then illustrates clear alignment with customer-centric dealings at all customer interaction points. By continually fulfilling its mission, Morrison strategically seeks to maintain its public image as a reliable supplier of vital commodities on both the local and global market.

Objectives

• To continue being a major player in the UK retail industry in order to secure the market status with sustainable competition (Zhang, 2022).
• Explore new realms and territories by moving into these regions in order to enlarge the company’s sphere of influence and attain more customers (Zhang, 2022).
• Increase customer satisfaction through innovating products, high quality services, and value From Learner (Zhang, 2022).

Morrison Market’s vision, mission, and objectives aspire to cater the needs of their customers by providing competitive value, quality and service. This close proximity to the consumers emphasises the strategic orientation of the company to satisfy the evolving needs and expectations on the part of their customers that have been the force behind the firm’s progress in the market in the past. Through establishing these parameters, Morrison has been able to acquire the best reputations for trust and reliability, consequently building strong loyalty among its customers (Jones and Comfort, 2019). Also, sustainability integrated into the vision, mission and objectives of Morrison Supermarket can put the company in the leading position of sustainable and responsible business offering environmentally and socially conscious consumers with preferable choice. Investigation discovers that organisations with greatly advanced resource efficiency capabilities commonly gain an improved brand reputation, customer loyalty and long-term profitability (Jones and Comfort, 2019). However, Morison’s current vision, mission, and objectives may provide sufficient guidance for the brand to succeed in the retail environment. The integration of the sustainability-supporting and socially responsible efforts could enable further growth in an age of conscious consumers (Zhang, 2022). In next section, we will going to analyse Morrison’s strategy: SWOT, PESTLE, and Poster Five Forces.

SWOT Analysis            

Strengths

1. Morrison has obtained a reliable brand picture throughout time by maintaining the trust in client’s through constant delivery of quality products (Haleem and Jehangir, 2017).
2. Supply chain and distribution network are the company’s strengths due to which it can ensure timely delivery of products and reduces the operational costs drastically (Alicke, Rexhausen and Seyfert, 2017).

Weaknesses

1. In terms of competitors, Morrison has less international presence which can therefore restrict the prospect of growth as compare to other companies more globally diversified can do (Haleem and Jehangir, 2017).
2. The company is extremely reliant upon its performances in the UK markets for its revenue, thus leading to the volatility of domestic economy and consumer spending trends (Sianipar, Juliana and Sitorus, 2022).

Opportunities

1. Morrison has a chance to widen its operations to unexplored and different geographies this is where they can broaden their revenue base and access opportunities that have not been used before (Haleem and Jehangir, 2017).
2. Following the rising trend of online shopping Morrison can profit from the high demand for e-commerce by improving digital exposure and evolving its online retail channels.

Threats

1. Morrison is competing with both the established and new-entrants businesses of the grocery product industry, which looks likely to affect the company’s share of the market and income (Sianipar, Juliana and Sitorus, 2022).
2. New regulations regarding food safety and health could require Morrison to change its practices while the need to adapt to consumer preferences and trends will necessitate adjustments to product offerings and marketing strategies (Haleem and Jehangir, 2017).

PESTLE Analysis for Host Country

Figure 2: PESTEL Analysis: SOURCE (Author)

Political Factors

The host country’s political stability, government regulations, and licensing can significantly influence Morrison Supermarket’s operations. It can occur with tax payments and trade regulations (Fatehi and Choi, 2019). The state regulation of foreign investment and the support of the government to the retail businesses of the host country may be the way Morrison approaches the entry strategy in the market, and the factors that contribute to his long-term viability (Morrison, 2022).

Economic Factors

The host country’s diverging economic growth rates, inflation rates, and security determine if Morrison can enter the market and how favorable it is for profitability (Friedberg and Hunt, 2018). The amounts of disposable income and purchasing power of consumers, who live in the host country, will become the main determinant of Morrison products’ demand level and of its pricing strategies (Friedberg and Hunt, 2018).

Social Factors

Social Factors Demographics, such as the number of populations, age distribution, and cultural preferences, have to be at the core of learning in order to develop the right MR techniques (Chekima et al., 2016). The next step should be the alignment of those products and services with the underlying needs and preferences of the chosen market by the company in conducting a social trend, lifestyle decision, and consumer needs.

Technological Factors

Percentage of technological infrastructures that would have to include access to the internet, connectivity via mobiles, and payments done digitally for enabling e-commerce solutions and retail technologies (Majumdar et al., 2020). Careful watch over the technological trends and utilizing the latest and effective digital processes within the country of operation will ensure Morrison remains top. This will keep it in a competitive state, evolving its operations in order to suit the changes in consumer demands.

Legal Factors

Morrison should strictly observe the legal and regulatory frameworks from the host country, ensuring that they are compliant with all laws of the land they are hosted in, such as those to do with labor and food safety regulations, among many others, in order that they may not imply legality (Wu et al., 2016). In this, it would be enough to protect Morrison’s brand assets and innovations from imposture and fabrication through the protection offered by the host country’s intellectual property law and trademark.

Environmental Factors

Another influential factor with respect to the processes of Morrison pertains to the sustainability efforts and adherence to the environmental regulations in the host country, along with the waste management approach in the overall corporate accountability. This will help Morrison get the point of view of the consumer as far as environmental sustainability and those regarding “clean ecology” are concerned, so the company could respond with promotion of programs and activities in line with the market segment’s ethical value and hence its realization to strengthen the brand.

Porter’s Five Forces Analysis for Host Country

Threat of New Entrants

1. The existence of high barriers to entry including capital intensity, economies of scale and embedded customer loyalty of the established competitors can diminish newbie’s willingness to step in (Isabelle et al., 2020).
2. Regulatory impediments and licensing requirements imposed by the host destination might act as passport to a new competitor to enter the market and hence create an entry barrier for new competitors; however, to the existing businesses (such as Morrison) it will act as a protection.

Bargaining Power of Buyers

1. The basic premise here is that alternative retail options will be easier to switch between the retailers and will play a key role in influencing the bargaining power of buyers in the host country’s market (Li and Xiong, 2022).
2. Consumer price sensitivity and the quantity buyers require will likely determine the amount of negotiation room that buyers have when dealing with shops such as Morrison.

Bargaining Power of Suppliers

1. The impact of the host country’s increased concentration of suppliers and their bargaining power on Morrison’s procurement costs and the way it manages the supply chain will be favoured by the travel industry (Isabelle et al., 2020).
2. The presence of other manufacturers associated with the industry and the competitors of Morrison could be a risk towards its supplier bargaining power and gives Morrison the power of negotiation.

Threat of Substitute Products or Services

1. Market substitutes are the primary factors that threaten Morrison and l measure of the consumers’ perception of Morrison and substitutes like online grocery delivery and local markets is the level of threat that the market substitutes will pose in the market (Li and Xiong, 2022).
2. Morrison’s ambition of distinguishing its products and services vis-à-vis substitutes via quality, branding and conceptually unique value propositions is an effective strategy against substitution.

Competitive Rivalry among Existing Firms

1. The varying levels of competition that exist among the current retailers in the hosting market, through the price wars, advertising policies, saturation and product quality, will have an impact on Morrison’s product placement and sales (Isabelle et al., 2020).
2. The extent of market centralisation and number of prominent retailers in the industry defines conjunctive relations of competition and strategies that Morrison must adopt.

Critical Evaluation of Morrison Current Strategy

According to the current strategy of Morrison Supermarket, it seems to be the combination of the diversity and the leadership, which is a result of its mission to bring out the best value, service and quality for the customers. The company has managed to keep leading retail position by paying utmost attention to product quality and service standards. At the same time, its market share has been increased (Xu et al., 2022). However, the potential impact to the company’s current strategy could be adversely affected because of the company’s limited international influence compared to its competitors. Even though Morrison enjoyed the reputation in the United Kingdom, the company might not expand its reach to other countries as it depends on selling products from its domestic production (Zhang, 2022). Nowadays, in the business world that may be considered as globalised, companies have to seek alternative revenue sources and make new markets available to stay on top of their competitors. As a result, Morrison’s existing strategy in fact does miss some digital opportunities of online retail purchase and digital platforms. Considering this e-commerce growth, the brand could allocate a larger budget to online presence and digital marketing for gaining large part of the market (Toms, 2015). Being unable to adjust to shifting customer demands and updated technologies can lead to huge opportunities to go missed by the company. Hereby Ansoff’s strategies prove to be efficient tools for Morrison to broaden its potential customers and to increase the number of offered products and, hence, to concretize its vision in the hard-to-pierce UK market (Indrianto, Mitasari and Hangga, 2021). To implement its vision of action in new markets, territories, and possible expected arenas, possibly, diversification approaches, such as new geographical regions or new product lines, can be needed (Grillitsch et al., 2023). Through the process of diversifying its business scope, Morrison will facilitate managing risks and more, as a result, it will capitalise on emerging opportunities in the global market place.

Precisely, although the current strategy of Morrison Supermarket has been useful in sustaining it the leading position in the UK retail market but there is a scope of improvement in terms of going international and adopting digital innovations. Through its revised strategic vision and looking for additional opportunities for growth, Morrison can get its company stronger and work towards the achievement of its mission and objectives in the current competitive business enterprise.

Recommendations

The recommended market entry strategies are in line with Morrison Supermarkets’ aim of tapping in to new markets while making minimal risky moves and in turn maximising returns (Henry, 2021). Franchise give a change to the company to be able to use the expertise and resources of the locals making easier the process to break into the market and without reduction of the initial costs (Weaven et al., 2021). Marketing standardisation achieves consistency in brand image and stable product quality, which leads to the building of the consumer confidence and brand following in areas with mixed cultures (Mandler et al., 2021). Moreover, adaptation to the specific demands and regulation norms in every market gives Morrison an advantage to modify the product suiting the consumers therein and stay relevant to the rapidly changing situation. Research (Mandler et al., 2021). Such strategies gain strength as they reduce risks connected with international expansion and capitalise the company’s strengths.

The Franchise operates not only in a scalable way but also in an adaptable way; it exploits local culture and networking system while at the same time it reduces the costs of investment and operations (Aziz et al., 2033). Along with that, a brand maintained its standard by maintaining consistent good quality delivery to the customers. Furthermore, adapting gives Morrison the ability respond a day’s market variability, which makes them competitive and are able to sustain business for long period of time (Richey et al.,  2022).

Conclusion

In conclusion, this paper has presented a multi-dimensional expose of the strategic initiatives of Morrison Market (strategic growth) and its change management processes. Using tools like vision, mission and goals, SWOT, PESTLE, and competitive forces analyses, and studying its current strategy, valuable insights regarding the company’s present position and future prospects have been gained. In comparison to their positive sides, which include brand recognition and sales efficiency, may also come confrontations such as the gap in international presence and disruptions caused by technology. Nevertheless, thorough suggestions for penetrating the market with franchising, standardisation, and customisation ideally involved can make Morrison exploit the emergent chances but also overcome the threatening obstacles. With successfully correlating its growth strategies and mission with objectives, Morrison Supermarket can negotiate the intricacies of expansion, change management effectively, and eventually establish durability in the dynamic retail industry.

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