SWOT analysis of Morrisons

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SWOT analysis of Morrisons

This article is about a detailed SWOT analysis of Morrisons. It examines the strengths and the weaknesses of Morrisons. It also examines the opportunities and the threats facing the company. Morrisons is a British born and value-led grocer headquartered at Bradford in England.

Strengths of Morrisons

Morrisons is the 4th largest supermarket in the UK. It has 10.3% market share of the UK grocery industry (Kantar Worldpanel, 2018). It is very well-known for its offering of good quality products at low prices. Being a food specialist and having its own freshly made food items provide Morrisons with a competitive advantage over some of its competitors.

Morrisons has over 100 years of supermarket history. It has over 500 stores and serves customers across the UK. It also has an online home delivery service. Approximately 11 million customers visit Morrisons every week and shop online.

It is needless to say that many customers now-a-days like companies that buy products from local suppliers. Morrisons buys many of its products directly from farmers and fishermen. It buys thousands of cattle and lambs every week from farmers. This makes it the largest supermarket customer for British farmers. The company has also recently announced to recruit 200 more British suppliers.

Having a very well-integrated supply chain is a strength. Many of the Morrisons products are processed through the company’s own manufacturing sites and abattoirs and then distributed through its own network. Morrisons has more skilled specialists on hand to prepare fresh food in store than any other retailer in the UK, with over 9,000 fully trained craftspeople including butchers, bakers, fishmongers and cheesemongers (Wm Morrison Supermarkets plc, 2018).

Weaknesses of Morrisons

Lack of effective online presence is a problem for Morrison. For instance, Morrisons posted a 2.5 percent increase in like-for-like sales for the three months to 29th October 2017; however, the increase fell short of the expectations of many analysts who expected a 2.8 percent growth (Vandevelde, 2017). Decline in consumer spending in general was to blame; however, it was also because of Morrisons’ lack of effective online presence and convenience stores.

Lack of consistency in customer satisfaction is also a problem for Morrisons. For example, the company was voted the UK’s worst high street store in a survey of 10,000 people conducted by Which? in May 2017. The findings of the survey simply bewildered Morrisons. However, it is worth mentioning that another survey of 7000 people conducted by Which? in February 2017 ranked Morrisons the most improved supermarket in the UK.

Opportunities for Morrisons

According to IGD (2018), the UK food and grocery market is forecast to grow by 14.8% between now and 2023, giving it a value of £218.5bn. This is a great opportunity for Morrisons to expand further in the UK. Likewise, expansion into international markets is also worth exploring.

Threats to Morrisons

Threat is the last element to address in the SWOT analysis of Morrisons. The UK grocery industry is dominated by three big giants i.e. Tesco, Sainsbury’s, and Asda.  Morrisons falls well behind them. Likewise, it is challenged by Aldi, Co-op, and Lidl. These challengers are capable to overtake Morrisons in the future.

Hope the article ‘SWOT analysis of Morrisons’ has been useful. You may also like reading SWOT analysis of Tesco. Other relevant articles for you are:

SWOT analysis of Sainsbury’s

SWOT analysis of Asda

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Last update: 07 December 2018

References

IGD (2018) UK food and grocery market to grow 14.8% by £28.2bn by 2023, https://www.igd.com/about-us/media/press-releases/press-release/t/uk-food-and-grocery-market-to-grow-148-by-282bn-by-2023/i/19052 (Accessed 7 December 2018)

Kantar Worldpanel (2018) Grocery Market Share https://www.kantarworldpanel.com/en/grocery-market-share/great-britain/snapshot (Accessed 07 December 2018)

The Week Ltd (2017) Morrisons ‘baffled’ to be named UK’s worst shop, available at:https://www.theweek.co.uk/64830/morrisons-baffled-to-be-named-uks-worst-shop (Accessed 05 December 2018)

Vandevelde, M. (2017) Morrisons sales rise but fall short of forecasts, available at: https://www.ft.com/content/b0b5f328-bfa2-11e7-b8a3-38a6e068f464 (Accessed 05 December 2018)

Wm Morrison Supermarkets plc (2018) Company history, available at: https://www.morrisons-corporate.com/about-us/company-history/ (Accessed 28 November 2018)

Photo credit: www.morrisons-corporate.com

Author: M Rahman

M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.