Comparison of strategic groups in UK and Spanish Grocery Industries - Essay Example

Activity 2 e: Comparison of strategic groups in UK and Spanish Grocery Industries Now summarise in 250 words the differences between the strategic groups in the 2 countries and the reasons offered for those differences. Which performed best and why? As a matter of interest do the UK groups identified in the paper bear any relation to your impressionistic map in activity 2c above? S.o UK Spain 1. Technology penetration is high among UK Consumers. Reason is UK is highly literate and most of the software’s use English as the base language.

Technology penetration is less among Spanish Consumers. Reason is the language and literacy level. 2. Competition is mainly differentiation oriented focusing On Innovation and creativity. Competition is mainly Price oriented with differentiation playing a significant role. 3. Competition is on a global basis as a lot of British companies go abroad for outsourcing their supply chain etc. Reason could be the Government policy. Competition is on a local basis as Spanish companies restrict themselves from going abroad and form associations and unions and restrict the entry of foreign players in Spain. 4. Strategic Stable Time Periods in Strategic groups have been stable due to the stability of UK Economy.

Strategic Stable Time Periods in Strategic groups have been unstable due to the un stability of Spanish Economy. 5. The retail structure is the same except the inclusion of mid-range national chains. Spanish Local hypermarket operators form a part of Spanish retail structure. S.o UK Spain 6. UK firms have become stagnant. Spanish firms are expanding rapidly. The main reason being the Spanish retailers are more aggressive in use of suppliers. 7. Wholesaling activity is very less leading to high prices.

Wholesaling activity is very high and forms around 50% of entire retailing leading to low prices. 8. Differentiation through Infrastructure. Differentiation through Human resource. 9. UK HR Investment is above average. HR Investment is below average. 10 Retail sales in tandem with the economy of the country. Retail sales have been very strong in spite of economic recessions. 11 Population is 58.2 million in 1993 Population is 39.9 million in 1993 12 Culture is deeply rooted just the opposite of Spain.

Spanish follow French culture to a great extent, the older rivals to UK. 13 The competitive battle had moved in part to supply chain management The competitive struggle revolved around market share 14 UK retailers moved to the sale of own label items 100 years before and own brands take some 37% of food sales. Spanish retailers moved to the sale of own label items just a decade ago and own brands take some 8% of food sales.