Porters 5 Forces and Pestle Analysis in Grocery Retail

[pic] PGCIM Unit 1 Assignment Kelly Moore December 2009 Should Rimi Baltic expand into the linked Kingdom as a Discount Grocer? Word attend: 2473 Introduction: Rimi Baltic is the 2nd largest retailer in the Baltic States at 20.6% grocery share, behind VP Market who lead the grocery store with 22.6% share (1). As a subsidiary of ICA Baltic AB (13.9% of sales), Rimi Baltic shoot downsed its growth in Lithuania and Latvia, allowing period of underperforming in Estonia. After losing out to Keskos K-citymarket and Saastumarket, a merger between these both Estonian market leaders and Rimi Baltic took endue in 2005. 238 stores now operate in all 3 Baltic States under 3 formats of the Rimi banner Rimi Hypermarket, Rimi Supermarket and discounter Supernetto. Rimi has experient a difficult time over the past 24 months with total group sales down -6.2% in the first quarter of 2009. Rimi Latvia experienced a decline of -4.3%. This is despite wake teeming YOY group growth of 13%. The effect of atomic number 63s hardest recession hit economy is taking place. A response to this has been to open more stores (238 in 2009 versus 215 in 2008) and focus growth in Estonia, where they fill previously underperformed.

Rimis set strategy is EDLP, and uses economy of scales from stocking its hypermarkets to keep prices low. 49% of Rimi Baltics turnover in 2008 was in Latvia, and for the purpose of this analysis, determining whether Rimi Baltic to should expand as a discount grocer into the UK, the country of Latvia result be used as a main point of reference. PEST Analysis Political: In recent history the two most significant dates in Latvias political evolvement have been 1991 and 2004. Both have impacted greatly on forming Latvias political standing 1991 - Latvia gain full independence from Russia and establish itself as a democratic republic. The sovereign power belongs to the people, whom are represented by a unicameral... If you want to get a full essay, order it on our website: Ordercustompaper.com

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