Morrisons SWOT and PESTLE Analysis

ID : 52270853| Feb 2023| 15 pages

COMPANY PROFILE -Morrisons

Business Sector :Retail

Operating Geography :United Kingdom, Europe

About Morrisons :

Wm Morrison Supermarkets plc, is headquartered in Bradford, West Yorkshire, England and is the fourth largest chain of supermarket in the United Kingdom. It began as an egg and butter stall in Rawson Market, Bradford, England, in 1899 by William Morrison. The groups business mainly focuses on food and grocery. Half of the fresh food is sourced and processed by the group in its own manufacturing facilities and stores. Morrisons’s expert food makers and shopkeepers prepare food in-store for customers. 97% of UK postcodes are covered by the supermarket’s online delivery service. As of February 2021, Morrisons employed 110,000 employees in its 494 stores and served approximately 11 million customers per week. In 2021, Morrison extended its wholesale supply agreement with McColl’s to 2027. Furthermore, 300 McColl’s stores will be converted to Morrisons Daily in the next three years. After considering the improvements made by Morrison in its customer service, sales, innovation and supplier relations, Retail Industry Awards recognized Morrison as the Supermarket of the Year in 2021.
Morrisons unique selling proposition or USP lies in being the fourth largest chain of supermarket in the United States. Morrisons mission statement reads. “To make and provide food we’re all proud of, where everyone’s effort is worthwhile, so more and more people can afford to enjoy eating well.”

Morrisons Revenue :

$17,598 million - FY ending, 31st January, 2021
$17,536 million - FY ending, 31st January, 2020

Competitive Analysis of Morrisons

SWOT

PESTLE

SWOT analysis report for Morrisons essays the detailed business case covering strengths, weaknesses, opportunities and threats of this retailer which has is determined to face all odds through its prudent business strategy of "Fix, Rebuild and Grow". As the Company by and large operates only in Great Britain, considerable headwinds are expected due to the consequences of Brexit and currency shifts as the UK consumer remains resilient so far. Morrisons is the smallest of Britain’s largest four retailers but has been brilliantly competitive and earned fat returns for its investors and shareholders. The SWOT analysis report presents an interesting business case and competitive analysis for Morrisons which believes that scale rarely defines retail winners and losers.

Strengths	Weaknesses
1. Food making skills with strong distribution network and an efficient supply chain 2. Highly customer oriented with ‘MyView” features and “More Card” programmer 3. Large product portfolio and customization	1. Limited geographic presence 2. Delayed response to changes 3. Low customer recall of private label Morrison products and weak loyalty program sparking concerns
Opportunities	Threats
1. Establishing global presence and become largest grocery retailer in UK 2. Convenience, online and discount channels are fastest growing sectors in UK 3. Move into non-food retailing in the UK 4. E-commerce boosting growth in pandemic conditions 5. Morrisons to expand Amazon partnership as sales soar	1. Changing rules and regulations 2. Growing competition 3. Increasing technological risks 4. Morrisons’ rejection of £5.5bn offer may spark bidding war for grocer 5. Morrisons axes wholesale supply to independent retailers over driver shortage 6. In spite of spiraling sales, profits clipped by Covid costs

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Detailed SWOT Analysis of Morrisons

Strength

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Weakness

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Opportunity

1. Establishing global presence and become largest grocery retailer in UK: With growing competition, increasing globalization and digitalization, it has become necessary for a brand like Morrison to establish strong global presence. It has to follow an aggressive approach of mergers and acquisitions. After Safeway’s acquisition in the offline market and Ocado in the online market, there has been hardly any approach to expand within and outside UK boundaries. According to research by IGD, the total value of the UK Grocery Market will grow 10% to £19.1 billion to £211 billion, between 2019 and 2022. Groceries account for 16% of total household spending in the UK, making it the third largest area of expenditure. Hence, there is enough market opportunity for the company. New brands such as Aldi are quickly gaining market share by their good pricing and discounting strategy.

2. Convenience, online and discount channels are fastest growing sectors in UK: According to IDG, the UK grocery market is expected to be worth £165.9 billion in 2021, growing at a CAGR of 3.4% during 2016-2021. Online grocery shopping will remain the biggest growing channel with an increase of 68% over the next 5 years. By 2022 discounters will be worth £12.6 billion and convenience stores will remain the third fastest growing sector with sales increasing from 21.4% in 2019 to 22% billion by 2022. Morrisons should tap into smart shopping (shoppers using “smart” devices to buy their groceries), convenient collection (lockers at train stations) and competitive pricing (low cost delivery entices more people to use the service) to increase their market share from 10.4 %.

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Threat

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The PESTLE/PESTEL analysis delves deep into the macro-environment of the retail industry for Morrisons. Pivotal factors or influencers that comprise of political, environmental, social, economic, technological, legal and environmental aspects play an important role in determining a business strategy that will help Morrisons in overcoming the challenges it is facing currently like loss of market share, changing customer needs and fierce competition from fellow retailers like Tesco, Sainsbury, Asda, Aldi, Co-op, Waitrose etc. In macro-environment, Morrisons is able to market itself differently as it makes its own food and controls the whole supply chain which means they know from where the food comes from and how to stock it as per customer demands. Whereas for the micro-environment, Morrisons is making the best usage of its resources over 110,000 colleagues and 11 million customer transactions every week. Find below the analysis of the external environment of Morrisons presented in a matrix:

Political	Economical
1. Brexit was a major political event and there was a lot of uncertainty due to changes in policies and regulations 2. Huge impact due to multiple government legislation on UK food retailers	1. Brexit caused significant fluctuations in currency and created inflationary pressures 2. Oil price rise resulted in various household budgets becoming tighter for consumers
Social	Technological
1. Rising age population presents various business opportunities 2. Growing education and health of consumers in UK 3. Morrisons launches new brand positioning with TV campaign	1. Morrisons uses artificial intelligence to stock its stores and drive sales 2. Investment in technology helped in reducing the wasted effort and cost making the business more efficient and responsive to customers 3. Use of digital data to inform the business to identify the emerging trends and better serve customers 4. Continuous focus on research and development to build in-house software and systems
Legal	Environmental
1. Complies with food safety and legal standards like FSA targets on campylobacter levels 2. 1000 ethical trade audits were undertaken in 2016 to ensure integrity 3. The company has policies and legal guidance to support compliance with several regulations	1. Operational carbon emissions were reduced by 26.9% and aim for 30% by 2025 2. Reduced use of poly boxes in supply chain by launching returnable ‘bins’ for fish products 3. Zero waste was directed to landfill in the manufacturing sites 4. Offering plastic-free fruit and veg options 5. Traditional pint-sized glass milk bottles set to be sold for 90p at 11 trial stores in bid to curb plastic waste

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This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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Detailed Pestle Analysis of Morrisons

Political

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Economic

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Social

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Technological

1. Morrisons uses artificial intelligence to stock its stores and drive sales: Morrisons employs artificial intelligence (AI) from Blue Yonder to replenish stock in its stores. It uses AI and machine learning to predict which stock is needed, when and where at Morrisons’ 491 stores. Deployment of such system has helped the group to drive efficiency and improve its customer services. The algorithm predicts when a certain product will be in high demand and whether the store has enough stock to meet those demands. Store managers are able to add in dates and events to help the system learn, so that during festive seasons or any other busy period the algorithm can make sure that adequate stock is on the shelves.

The remaining section under "Technology" is available only in the 'Complete Report' on purchase.

Legal

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Environmental

This section is available only in the 'Complete Report' on purchase.

Sample Complete Report

This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."

SWOT & PESTLE (combined)
Complete Report
USD 12.53

Debit/Credit card
PayPal

Great quality, Affordable pricing.

Safe and secure payments

On purchase the Morrisons SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.

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WHY CHOOSE US?

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Morrisons BCG Analysis
Morrisons Segmentation, Targeting and Positioning (STP) Analysis
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Morrisons SWOT and PESTLE Analysis

COMPANY PROFILE -Morrisons

Business Sector :Retail

Operating Geography :United Kingdom, Europe

About Morrisons :

Morrisons Revenue :

Competitive Analysis of Morrisons

Detailed SWOT Analysis of Morrisons

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Morrisons

Political

Economic

Social

Technological

Legal

Environmental

TABLE OF CONTENTS

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