Industry Analysis on Food Lion Research Paper Example | Topics and Well Written Essays - 5000 words

Industry Analysis on Food Lion - Research Paper Example 13 Publix Super Markets, Inc. 13 Publix Super Markets, Inc. 13 Publix Super Markets, Inc. 13 Publix Super Markets, Inc. 14 Publix Super Markets, Inc. 14 Publix Super Markets, Inc. 14 24398/(193406-117645) 14 Publix Super Markets, Inc. 14 2302/ (12278-2149) =22.7% 14 23538/(180782-109535) 14 Publix Super Markets, Inc. 14 22118/() 14 Publix Super Markets, Inc. 14 †¢ Stock Analysis 15 In 2012 Food lion fetched $46.69 per share as the highest stock price in that year while in 2013 with just a few months into the New Year, the company has managed to trade as a high of $56.51 this evident growth in share price has been made possible by the good quarter one results and the potential in the retail industry in America. After suffering years of image smear following the undercover report by ABC News year ago, investors and customers alike have totally regained confidence in the ability of Food Lion as a retailer. The company’s stock is expected to rise by double digit percentages b y the end of 2013. 15 External Analysis 16 Internal Analysis 20 Recommendations 23 It is axiomatic to squabble that Food Lion LLC is one of the largest supermarkets chains in the United States. The company is currently operating more than 1200 stores across the country (Anderson, Sweeney& Williams, 2009). The company is operating in an environment that is intended to serve its clients. The company’s grocery chains have been changing its strategy to see an upsurge in their profits. Through the cutting out of its overhead the company has been in a position to offer affordable and low prices to its consumers and still manage to remain profitable and compete well with other big firms. Food Lion has faced increased competition in the past forcing it to reduce the number of workforce and closing of some of the stores spread across 11 states in the country. It has also revitalized the grocery shopping experience through the introduction of the Bloom concept which is intended to prov ide a peculiar convectional layout and also competitive prices. Despite serious competition the company has been facing, it has managed to exponentially increase its sales. The firms sales are backed by a MVP Card which is issued to any client who intends to have it. It has currently added butcher departments, pharmacies; bakery departments, deli departments and also fresh seafood departments so as to favorably compete with other major firms. The discussion in this paper will analyze the operations in the company taking into consideration the firm’s competitors, internal and external operations, financial performance and analysis and the firm’s future projections. This will finally lead us into drawing a conclusion and recommendations to ensure the better performance of Food Lion. Current Situation During the first half of the 21st century, Food Lion was continuously involved in various food experiments with different formats, creating its own brand of ice cream which is low fat, remodeling of a number of stores, and opening of in- store pharmacies. Despite a number of challenges that the firm has been facing, it has overall managed to prosper. The firm has considered satisfying clients as the major source of their strength. It has managed to give its customers on real one stop shopping experience. A microscopic look and analysis of the firm indicates that their main strength is their low price tags. This gives them a competitive edge against their