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City Banking Collage
a. Analyse how Morrisons was able to grow from a regional supermarket into one of the big four UK supermarkets.
b. Explains how Morrisons has been able to outperform Tesco in recent years, despite its significantly lower market share.
c. What future strategy moves are Morrisons likely to make, and why?
The UK supermarket is dominant by Tesco, Asda, Sainsbury’s and Morrison, these giants super market control the large share of market. They controlled 75 per cent that amounts to £120bn of the UK grocery market.
Morrison has come in a long way to compete with Tesco, Asda and Sainsbury’s from a local supermarket to a big four in the UK. The company was founded in 1899 by Ken Morrison, It started with the sales of eggs and butter in Bradford, West Yorkshire. Later the company built into shops around the market. A notable progress came in 1958 when a big shop was opened in the town shopping Centre. In two years later a shop was open name “victoria” in Bradford that attracts customers locally.
Morrison became a public company in 1967, which lead to a high demand from the public in purchase of shares by more than 81,000 investors. The company has since achieved a 35 year unbroken track record of sales and profit growth and in April 2001 joined the FTSE 100 for the first time. Despite Morrison’s small size and regional focus that concentrates on northern England it is still battling as the fourth largest supermarkets in UK, the company has up to 107 stores, 80 of them engage on petrol stations and 30 of…