Lindsey PalminteriBUS 485Case #2 - Mission Summary: Loblaw Companies, based in Canada, recently discovered that Wal-Mart was going to market. With the new launch, it now faces the biggest competitive challenge. Wal-Mart plans to open its first supercenter in Canada and, with its everyday low prices, product selection, target market, efficient supply chain and logistics, it is 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 many other factors are also coming into play as the sector grows, such as wholesale clubs, online shopping and convenience stores. Loblaw must determine its next step to be competitive with its new competitor, Wal-Mart. Identification: Leading Presence Loblaw is currently the leader in market share and can continue to be so as long as it remains competitive compared to Wal-Mart. Walk. In the United States, Kroger remained the number one food retailer until 2002. Wal-Mart's grocery department was first introduced in the United States in 1988, meaning Loblaw has time to maintain its competitive advantage over Wal-Mart before dominating the Canadian market.Customer Loyalty ProgramThis factor will probably be the most important factor that will help Loblaw maintain its current market share. Currently, Wal-Mart does not have a loyalty program for its customers. The customer loyalty program launched with President's Choice Financial Services, where customers receive points when they shop at any Loblaw chain...... middle of paper ..... Illustrated by the 4% growth rate, it is important to emphasize the urgency Loblaw must aggressively contain the broader industry problems related to rapidly increasing packaging costs and the need to make its chain. more efficient supply. It is this latter weakness in the overall Canadian market that Wal-Mart will target in its initial market launch. There is also a threat of consolidation throughout the industry and although Loblaw has taken advantage of this with a series of successful acquisitions resulting in the addition of over 200 stores spread across Canada and the United States. At this point, Loblaw has successfully capitalized on consolidation, yet it remains a persistent threat. On top of all these other factors, the continued rise in the price of oil has continued to drive up operating costs across all distribution channels and operations.