Reed supermarket case analysis Study Example | Topics and Well Written Essays - 500 words

reed supermarket analysis - Case Study ExampleHowever, as the case highlights Reed Supermarkets is facing stiff argument from newer entrants which because of their nimbleness and ability to offer steep discounts (at a discount 1 to 5% from the footings at Reeds) unite with better management of logistics take over ensured that the market share of Reed Supermarkets (currently at 14%) is steadily eroding.The vertex to note is that Reed Supermarkets has positioned itself to allow for to quality certain customer rather than cost a conscious customer which makes for eminent business sense given the demographics of Columbus where the number of people earning more than the study average income is high. Further, Reeds scores heavily in the quality index of consumer perceptions (consistently averaging around 8.3%) whereas it scores lower in the price index (averaging around 4.3%). This is the crucial aspect of the case i.e. Reeds is perceived as a coiffe to get high quality goods but not at an attractive price. Though a crew of high quality and low price is something that is a bit of a paradox, the fact that other retailers have been adequate to wean away the cost conscious consumers with their discounts and bigger floor areas means that Reeds needs to severely rethink its strategy as it is faced with the problem of holding on to its market share and worse, losing object to other retailers as well.The suggestion that is being offered is that Reeds can stock different varieties of products at all price bands and also ensure economies of scale which other retailers seem to be doing. In this way, it would be able to cater to all segments of consumers as well as derive savings in costs that accrue from leverage upon economies of scale. As the statistics point out, price is the major determinant which is followed by range of products and location and ease of shopping. If Reeds is able to circumvent these factors, then it would be in a position to