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10 Introduction 11Terms of reference This report is the result of analysing the Netto case study The report identifies the key points that have helped Netto become a successful discounter store the environmental analysis and problems that it may face in the future and how to maintain its competitive advantage 20 SWOT analysis 211 Strength Netto has become a increasingly visible recognisable high street name Netto has a range of products that covers 90 of the daily needs of customers Netto consolidated its position in Denmark now looking at possibility of exporting the concept in Germany and UK Penetrating 4 different markets successfully Established since 1981 Good market knowledge Very focused company objectives eg just concentrating on being LRD and not supermarkets Price competitive products Good USP special offers concessions Discount market leader in Denmark Good layout of shop atmospherics no nonsense quick access to products for customers Multi-tasked staff and good training and development team They have a flexible marketing strategy pricing etc is determined by the market industry Netto promotes quick access to the merchandise Maintains a competitive retail price at a low profit margin 212 Weakness People are sceptical about products which are cheap and therefore not associate them with quality in UK market Poor communications mix Brand name not as good as rivals 213 Opportunities To increase number of concessions in Netto stores by improving selling space Extend range of the retailer Improve store traffic Extending their range of offered services by diversifying into areas previously untapped by retailers eg retail banking new retail formats A challenge for Netto will be if they can get low price equals cheap to low price equals value to attract operate number of higher spending customers from social groups A and B To maximise its products offer and cost efficiency 214 Threats The company views competition on industry and regional level Competition coming from two-levels industry and regional
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