Lindsey PalminteriBUS 485Case # 2 AssignmentExecutive Summary:Loblaw Companies, based in Canada, recently found out that Wal-Mart will launch into the markets. Now it is facing its biggest competitive challenge with the new launch. Wal-Mart is planning to open its first supercenter in Canada and with its everyday low price, product selection, target market, efficient supply chain and logistics, it poses a strategic threat to Loblaw. Not only is Wal-Mart a threat, but Loblaw must remain focused on its prospects already ahead of other competitors in the Canadian market such as Safeway, Sobeys, Metrics and A&P. Not only are these now a threat, but as the industry grows, a number of other factors also come into play, such as wholesale clubs, online shopping and convenience stores. Loblaw needs to figure out its next move to be competitive with its new competitor, Wal-Mart. Identification: Leading Presence Loblaw is currently the market share leader and can continue to be so as long as it remains competitive with Wal-Mart. Tuesday In the United States, Kroger remained the number one grocery retailer in the United States until 2002. Wal-Mart's grocery department was first introduced in the United States in 1988, meaning there is time for Loblaw to continue to maintain its competitive advantage over Wal-Mart before they dominate the Canadian market. Customer loyalty program. This factor will likely be the most important factor that helps Loblaw maintain its current market share. Wal-Mart currently does not have a loyalty program for its customers. The customer loyalty program was launched with President's Choice Financial, where customers receive points when they shop at any Loblaw chai... middle of paper... illustrated by the 4% growth rate, needed to highlight the The urgency is for Loblaw to aggressively contain more industry-wide issues related to rapidly expanding packaging costs and the need to make the supply chain more efficient. This latest weakness in the entire Canadian market is what Wal-Mart will target with its initial market launch. There is also the threat of consolidation throughout the industry, and while Loblaw has taken advantage of this with a series of successful acquisitions that have led to the addition of over 200 stores spread across Canada and the United States. So far Loblaw has managed to capitalize on the consolidation, yet this is a persistent threat. In addition to all these other factors, the continuous increase in oil prices has continued to increase the costs of managing all distribution channels and operations