Why Morrisons is losing the supermarket war.
When it comes to supermarkets in the UK, it's basically an oligopoly. That means that the market only really includes a small number of suppliers, in this case four.
Tesco, Asda, Sainsbury's and Morrison's In the UK, these are the four contenders. Almost constantly locked in a price war, competition is fierce.
Despite the fact that Tesco nearly always comes up on top, (either that or Asda), all four of the chains usually operate very successfully, generating extremely large profits on an annual basis. However, in a rare twist of events, Morrison's have reported a fall in profits. Of course the profit was still £879million but a fall of 7.2% is pretty significant.
With such a high level of loyalty towards supermarkets, there is very rarely a sharp decline in profits, so what have Morrison's been doing wrong? Well, rather awkwardly, the problem is incredibly basic.
No Internet presence.
It doesn't take a genius to work out that with so much technological advancement, we are basically being forced into being lazy. Why would anybody go to the supermarket when we could just scan in items on our phones and have them delivered to our door?
The clever folk who run Asda, Tesco and Sainsbury's managed to work out the key to success is making it as easy to shop as physically possible. However, for some reason, Morrison's just didn't bother!
It took a 7.2% fall in profits for them to get their act together and set up an online service. It's interesting to think that highly paid business managers can make such simple mistakes. What ore mistakes could they be making? I'll leave that for next time.
Tesco, Asda, Sainsbury's and Morrison's In the UK, these are the four contenders. Almost constantly locked in a price war, competition is fierce.
Despite the fact that Tesco nearly always comes up on top, (either that or Asda), all four of the chains usually operate very successfully, generating extremely large profits on an annual basis. However, in a rare twist of events, Morrison's have reported a fall in profits. Of course the profit was still £879million but a fall of 7.2% is pretty significant.
With such a high level of loyalty towards supermarkets, there is very rarely a sharp decline in profits, so what have Morrison's been doing wrong? Well, rather awkwardly, the problem is incredibly basic.
No Internet presence.
It doesn't take a genius to work out that with so much technological advancement, we are basically being forced into being lazy. Why would anybody go to the supermarket when we could just scan in items on our phones and have them delivered to our door?
The clever folk who run Asda, Tesco and Sainsbury's managed to work out the key to success is making it as easy to shop as physically possible. However, for some reason, Morrison's just didn't bother!
It took a 7.2% fall in profits for them to get their act together and set up an online service. It's interesting to think that highly paid business managers can make such simple mistakes. What ore mistakes could they be making? I'll leave that for next time.