International Logistics - Essay Example

The uniqueness that this store offers and its efforts to make it different and better than what is already being offered have made the retailer a success. When the company emphasizes on being better than ever, this means that they are actually keeping themselves updated with the pace of change that is taking place in its surrounding. Retail industry of UK is very competitive and the industry is facing many challenges currently too. But Morrisons has managed to deal with these challenges in a quite efficient manner.

One of the biggest challenges in retail food industry is to provide fresh food to customers and Morrisons has always believed in providing the best quality and fresh food to its customers and they manage it through their efficient supply chain system which also acts as their competitive advantage in retail market (Morrison’s, 2002). Morrisons believes in providing premium quality food to its customers and to achieve this goal, Morrisons is ready to take necessary steps. The retailer collects freshly produced foods from local markets which are later further processed according to the manufacturing procedures of the organization.

This process is done to preserve the freshness of food and to store it safely in warehouse. Morrisons uses its own temperature controlled warehouse to maintain food’s freshness and it has its own packaging plant as well. The prime motive of Morrisons is to deliver the best customer service. Customer satisfaction is of utmost importance for the organization. It serves as a point of difference for their organization as the way they treat their customers simply differentiates them from their competitors (Lovelock, and Wirtz, 2011).. Especially when a company is operating in service sector, then it has to focus on customer service in order to be successful in the long run (Lovelock, and Gummesson, 2004).

For the provision of best customer service, employees are trained; employees are always kept motivated so that they are able to deliver in the working time. Performance benchmarking is done in order to be competitive and to gain greater market share and to perform better than previous performances. All of these steps taken by the organization play a significant role in affecting customer service positively. SITUATION ANALYSIS Morrisons is counted as one of the big names in United Kingdom’s retail sector.

Despite of the fact that Morrisons is one of the big names, this year sales of Morrisons faced decline as compared to the sales of previous years. Due to this there is a drop in Morrisons customer’s confWidence. Now these two factors are areas of concern for the management of Morrisons (BBC News, 2012). The market environment is getting tougher day by day. Competitors are constantly bringing up new offers and products to compete successfully in market and to capture greater market share. Competitors are performing better and trying to take and maintain lead in retail business, in such environment, there is a great pressure on Morrisons to deliver more than expected.

The reason diagnosed for the decline in sales of Morrisons was their lack of performance in trading market. This reason has resulted the company to lose its market share to 11.5%. The market share of the company was 12% last year (BBC News, 2012). These are some serious issues that need to be resolved in order to be the market leader in retail category and to defeat giants like Tesco, ASDA and Sainsbury. Apart from the mentioned