Loblaw Companies Limited:Preparing for
Wal-MartSupercenters16
C A S E
ASSIGNMENT QUESTIONS1. What are the defi ning business and
economic characteristics of the Canadian supermarket industry? What
is
the industry like?
2. How is the Canadian supermarket industry changing? Identify
the 3-5 primary underlying drivers of change in the industry and
discuss how those forces individually and collectively are changing
competition in the industry.
3. Identify the 3-5 factors that determine success for
supermarket operators such as Loblaw.
4. What does a SWOT analysis for Loblaw Companies reveal? Does
the company have any identifi able core and/or distinctive
competencies?
5. Assess the effectiveness of the actions taken by John Lederer
and his executive group to prepare Loblaw and The Real Canadian
Superstore for coping successfully with the added competitive
pressures posed by Wal-Mart Supercenters. Are these actions likely
to prove suffi cient for Loblaw to maintain its market position and
fi nancial performance?
6. How well is Loblaws strategy working? What is your assessment
of Loblaws recent fi nancial per-formance?
7. What does a strategic group map reveal about Loblaws position
vis--vis Wal-Marts position in the industry? How are Loblaws,
Fortino, and The Real Canadian Supercenter store formats positioned
to compete with Wal-Mart? Which format is likely to be the most
direct competitor?
8. What issues should Galen Weston Jr. be most concerned about?
Which should have the highest priority? Why?
9. What specifi c actions should Loblaw take to improve its
competitiveness? How might Lowlaw exploit its local knowledge of
the Canadian supermarket industry to defend against Wal-Marts
entry?
