Walmart vs. Loblaw: A Case Study in Canadian Grocery Market Strategies, Assignments of Production and Operations Management

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Case Study 2: MBA 5040: Operations Strategies- Walmart v/s Loblaw Sandermoen School of Business (SSB), University of Fredericton Dr. Dani Babb July 3, 2023 Introduction

In the recent studies, Loblaw, the country's largest grocer, emerged as the most trusted brick-and-mortar grocery store brand. Wal-Mart, on the other hand, is the most trusted brand when it comes to online grocery purchasing (Comparably, n.d.). These two retail titans have distinct strategies that distinguish them from one another. To gain insight into their operations, I will investigate their location strategies, the impact of online grocery pickup services on their business models, and the secret to Loblaw's success as the dominant grocer in Canada despite not being able to compete with Wal-Mart on price. Distinct Location Strategies Walmart and Loblaw have distinct placement strategies. Loblaw enters the Canadian market by establishing many stores (Insider, R., 2023). Loblaw's brick-and-mortar stores are strategically positioned to serve a broad variety of customer types and geographic regions. Loblaw's national presence enables Canadians to purchase sustenance with ease. However, Walmart's location strategy is concentrated. The company operates massive supercenters for one-stop purchasing (Smithson, N., 2020). Wal-Mart concentrates its stores in particular locations to achieve economies of scale and cost-effectiveness while maintaining consumer accessibility. To serve diverse local communities, Loblaw's strategy for penetrating the market entails a store network that is more dispersed. Walmart prioritizes volume and efficiency. The placement strategies of the two supermarket businesses reflect their respective business methodologies and priorities. The Transformation of Operations: Impact of Online Grocery Pickup

Ethical consumers appreciate Loblaw's CSR and commitment to sustainability. Loblaw Companies Limited assists local communities, encourages healthy lifestyles, and reduces its environmental impact. These strategies enhanced Loblaw's brand image and consumer engagement (Comparably, n.d.). Loblaw has achieved success in the Canadian grocery market without competing with Wal-Mart on price by differentiating, investing in private label products, and emphasizing sustainability and corporate social responsibility. Conclusion To conclude, Loblaw and Wal-Mart have different grocery market strategies in Canada. Loblaw's large store network and market penetration strategy make different areas accessible and convenient, while Wal-Mart's retail concentration stresses efficiency and scale. Due to user demand, both companies provide online grocery collection. Loblaw's success as the largest grocery retailer can be due to their differentiated customer experience, investment in private label brands, and sustainability, despite Walmart's price advantage. These elements have helped Loblaw recruit and value loyal customers. Loblaw and Wal-Mart's tactics reflect their priorities and have shaped their Canadian grocery market positions. References

Krashinsky, S. (2013, July 15). Loblaw looks to a new generation of shoppers. The Globe and Mail. Retrieved from: https://www.theglobeandmail.com/report-on-business/with-shoppers-loblaw-targets-coveted- urban-market/article13216921/ Loblaw Companies Ltd. (n.d.), Leading With Purpose | ESG Retrieved from: https://www.loblaw.ca/en/responsibility/ Insider, R. (2023, February 23). Loblaw’s PR Response to Consumer Criticism Shows it Prioritizes Profit Over People [Op-Ed]. Retail Insider. Retrieved from: https://retail-insider.com/retail-insider/2023/02/loblaws-pr-response-to-consumer- criticism-shows-it-prioritizes-profit-over-people-op-ed/ Smithson, N. (2020, August 21). Walmart’s Operations Management: 10 Strategic Decisions Productivity. Panmore Institute. Retrieved from: https://panmore.com/walmart-operations-management-10-decisions-areas-productivity- case-study-analysis Comparably, n.d., Loblaws V/s Walmart , Retrieved from https://www.comparably.com/competitors/loblaw-companies-limited-vs-walmart