8/16/2011

RAYAT LONDON COLLEGE

STRATEGIC ANALYSIS ON WAITROSE PROSPECT IN CHINA

Waitrose to China | Group 2

Table of Content
Title page.i Table of content..1 Introduction2 PESTLE Analysis...3 Political Factor. Economic Factors Social Factors.. Technological Factors. Environmental Factors Legal Factors .. SWOT Analysis. Strength Weaknesses Opportunities Threats ..... Porters 5 Forces. Barrier of entry The power of buyers The power of suppliers.. The threat of substitutes Rivalry among existing competitors.. Market Entry Strategy.. Conclusion/Recommendation Reference .

Introduction
The economies in the emerging markets have been growing strongly despite of the economic downturn in the developed countries. Therefore, it is vital for many of the multinational corporations to build their presence in these emerging markets rather than U.S. and Western European markets where the growth is slow and the growth potential is limited. Amongst of all the emerging market, Chinas economy has been growing drastically. It has become the worlds second biggest economy after U.S. According to BBC news (2011), China is estimated to become the same size as the US economy within 10 years. Also international food and grocery expert IGD (2010) estimated that China will overtake the US to become the largest grocery market in the world by 2014. In this essay, analysis are made on the current global marketing environment and competitive environment of grocery market in China as well as the distinctive capabilities of Waitrose in order to evaluate and recommend the successful market entry strategies for the firm to capitalize the opportunities and sustain business growth in the prospective worlds biggest grocery market. Company Background Wallace Waites, Arthur Rose and David Taylor opened their first grocery shop at 263 Acton Hill, West London in 1904; at that time they had no idea that the company would be one of the leading food retailers with in a century. The business was acquired by the John Lewis Partnership in 1937, opening the first Waitrose supermarket in 1955. Today there are 243 branches throughout England, Scotland and Wales, dedicated to offering quality, value and customer service. (Corporate Information- Waitrose.com) Locations range from high streets to edge of town sites, size varies from 7,000 square ft to approximately 56,000 ft. Waitrose aims to combine the convenience of supermarket with the expertise and service of specialist shop. They also offer a price commitment to ensure that customers always get good value for money when shopping at Waitrose.(Corporate Information- Waitrose.com)

Pestle Analysis
A PESTLE analysis is a useful tool for understanding the big picture of the environment in which an organisation is operating. Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation. It stands for - Political, Economic, Sociological, Technological, Legal, and Environmental. China PESTLE analysis for Waitrose: Political China is governed by communist party. The stability of the China government is quite moderate and stable because the administration of the government are not publicize. From the recent years (2001), China has joined the World Trade Organization and results rapid growth in industrial and manufacturing sectors because of the cheap labour in China. In the past few decades, China loosens their trade policy to the outside world in their trading, export and import industry. (http://www.china-window.com/) Recently China has made extraordinary efforts in modernizing legal and economic system aimed to stabilize the growth of the country; however China remains a strictly controlled country, where civil liberties, such as freedom of communication, religion practice and demonstration are severely limited. Relationship: China enjoys a strong relationship with the US and other western countries and is likely to increase its influence in the region due to its expanding economy. China has difficult relations with a number of neighbouring countries, such as Japan, Vietnam, North Korea and Tibet.(http://www.starmass.com) Tax policy: As per law in 2007, the foreign companies have to pay tax equally as their Chinese companies. China began to charge foreign companies taxes, which helped to finance local cities, maintenances and construction of schools. (business.globaltimes.cn/china) The 2011 corporate tax rate for domestic and foreign companies is 25%. Chinese companys capital gains tax is added to the regular tax, whereas 10% deduction for

capital gains of foreign companies in china. (www.worldwide_tax.com/china). Economic factors China economy is characterized by its extraordinary size and growth. The GDP has grown steadily since 2003 peaking at 11% year-on-year growth in 2007 (China Business Forecast Report 2008, and inducing concerns about the country over-capacity in the long term. The US government is trying to exercise its influence to accelerate the appreciation of the Yuan, in an effort to limit or at least control its export deficit. Although the Peoples Bank of China has raised the interest rates for five consecutive times in 2007, inflation is still very high with peaks of 6.2% in 2007. Economic growth is still mainly driven by fixed asset investment and exports. (http://www.starmass.com/china_review/economy_overview/china_macroeconomics.htm) Economic growth rate: The growth of China's economy remains healthy, but the latest figures show it is now expanding at a more moderate pace. China's GDP (gross domestic product) grew 9.5% in the second quarter of 2011, compared to last year. However consumers are being hit hard by rising prices for a range of products, especially food. The country's GDP reached 20.45 trillion Yuan (3.175 trillion U.S. dollars) in the first six months.(http://nextbigfuture.com/2011/07/chinas-gdp-update.html) Interest rates: China raised interest rates for the fourth time since last year (2007) to tackle inflation. The latest interest rate in china is reported to be 6.56%, when compared to last time interest rate 6.31%.In China, interest rates decisions are taken by The Peoples' Bank of China Monetary Policy Committee (Trading economics, 2011)

Exchange rates: China is the fastest growing country; it became the leading exporting nation and the second largest economy in the world. Chinese Yuans to 1 USD. Latest 1USD=6.39038 CNY

The above graph reports that china currency increased due to the economic crisis in US. (CFR, 2011) Inflation rates: The inflation rate in China was last reported at 6.5 per cent in July of 2011. From 1994 until 2010, the average inflation rate in China was 4.25 per cent reaching an historical high of 27.70 per cent in October of 1994 and a record low of -2.20 per cent in March of 1999. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. (Trading economics, 2011)

SOCIAL FACTORS China has the largest population in the world, 1.3 billion people increasing of about 7.8 million people every year. In average women with a university degree can earn as little as 75% of the salary of males with equivalent skills. Finally it should be noted that in China title
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and status are very important, as well as punctuality both professionally and socially. Unemployment rate: The urban unemployment rate in China was last reported at 4.1 per cent in the first quarter of 2011. (Trading economics, 2011) Population growth rate: The total population 1341.0 million people in 2010

TECHNOLOGICAL FACTORS China has developed a number of industrial centres where transport, telecommunications and energy infrastructures are widely available. Research and Development: The government design many plans and strategies in developing the R&D industry. Many programs to enhance R&D industry are launched such as the Torch Program and the Scaling Heights Program. China is now the second largest nation in terms of R&D spending. China is expected to spend $153.7 billion on R&D in 2011. (http://online.wsj.com/article/SB10001424052748703734204576019713917682354.html) ENVIRONMENTAL FACTORS The environment in the People's Republic of China has traditionally been neglected as the country concentrates on its rise as an economic power. Chasing the political gains of economic development, local officials in China often overlook environmental pollution, worker safety and public health problems.

Air pollution: Respiratory and heart diseases related to air pollution are the leading cause of death in China. Various studies estimate pollution costs the Chinese economy about 7-10% of GDP each year. Water pollution: Decades of waste poured from factories and cities into China's rivers have turned many of them into open sewers. About 40% of the water in the country's river systems has a quality index of 3 or worse, meaning that it is unfit for human consumption. (China Environment, 2011)

LEGAL FACTORS The Chinese legal framework is a source of uncertainty for international investors. In fact laws remain subject to a certain degree of interpretation, mainly because of weak act and inconsistencies between local and national regulations. Labour law: Employment Law is formulated in accordance with the Constitution in order to protect the legitimate rights and interests of labourers, readjust labour relationship, establish and safeguard the labour system suiting the socialist market economy, and promote economic development and social progress. (http://www.usmra.com/china/Labour%20Law.htm) In 2008, China produced new labour law, which is called 'labour contract law. This requires all labour contracts to be in writing and it will impose significant penalties on employers that fail to comply with it. (China Law blog)

Swot Analysis
Competitive Strategy starts with an assessment of the outside (external) environment and the Organisations internal capabilities. This process according to business planners is known by acronym SWOT (Harvard Business Press, 2005). The SWOT analysis is a strategic Planning tool used in evaluating the Strengths, Weaknesses, Opportunities and Threats of a company providing helpful information in matching a companys resources and capabilities to the competitive environment in which it operates (Nadine and Richter, 2009) Building value through Strengths, eliminating Weaknesses that detract from value, exploiting Opportunities that maximise value, mitigating the effect of Threats to value provides the essential direction for Organisational development in the competitive environment (Dealtry, 2009). The SWOT analysis allows Organisations to maximise their Strengths, minimise their Weaknesses, take advantage of their Opportunities and overcome their Threats (Fine, 2009) STRENGTHS: Strong Brand: Waitrose has very successfully positioned themselves as a destination which provides quality at reasonable prices. They are no longer viewed as being vastly more expensive than other grocers. The launch of essential Waitrose is the key to their success. They provided a cheaper option for their core customers and quality food at reasonable prices. This was done without diluting the quality perception of the other products that made Waitrose special and different from other players. (Just Food Home. News and Insights). Waitrose credentials for good food fine quality ingredients were further strengthened with the arrival of Delia Smith and Heston Blumenthal as Brand ambassadors in 2010 (Waitrose press centre, 2011) Waitroses Belief in Quality: Their reputation has been built on quality and freshness to their food which is what their customers want and what gives them an edge over other supermarkets. They are committed to bringing the best of quality food to the extent that should you not enjoy one of their products when you tell them they would replace and refund you. Its their policy to replace and refund if a customer is unhappy with the product in any way. (Waitrose Corporate Information, Waitrose.com)

Innovative Skill: In addition to its essential product line, Waitrose has an unmatchable top tier of product ranges and innovation continued through 2010 with the launch of new menu, Duchy originals from Waitrose and Heston from Waitrose. The significant development that underlines the Waitrose commitment to quality cooking is the launch of UKs first supermarket cookery school in Nov 2010 (Waitrose press centre,2011)

Uniqueness: Waitrose is the only supermarket to hold a Royal Warrant from H M Queen Elizabeth 11. As of 01/10/201, the company has a royal warrant to supply groceries, wines and spirits to Prince Charles. For this reason they have been regarded a mark of excellence and quality and are highly prized. (The Waitrose DifferenceOur Company Waitrose.com)

A Partnership: As part of John Lewis partnership, its owned by everyone who works for the partnership thats why Waitroses staffs are called partners, sharing profits every year that would normally go to shareholders. For this reason, there is an extra ordinary level of commitment among staff and excellent customer service.( Waitrose corporate information, Waitrose.com)

Positioning: According to Waitrose Press Centre, Waitrose concentrates through investing in value, innovative top tier ranges. These investments succeeded in attracting on average around 300,000 new weekly customers. In September 2010, Waitrose boosted its position with the launch of Brand price match, a long term commitment to price march Tesco on 1000 branded products which sit alongside the essential Waitrose range. Customers can do their weekly shop without sacrificing value or quality.

WEAKNESSES: The companys slow expansion strategy: Although Waitroses present store openings and existing store chain is the key to the companys success, part of its weakness has been its slow expansion strategy. Waitroses competitors for example Tesco are believed to have taken a competitive advantage over Waitrose because of that weakness. Poor online service: Waitrose has experienced serious speed and navigational problems on its new 10 million website, leading angry customers to complain on the

supermarket's web forum and forcing the chain to apologise to customers.(CFOWORLD, 2011) OPPORTUNITIES: Chinas rapidly growing retail markets: China has most lucrative and rapidly growing retail markets in the world. Chinas retail sales hit $1.8 trillion in 2009 up to 15.5% year on year (China Business Review, 2010). Chinas booming retail sales are underpinned by a steady rise in household income. In 2009, the per capita disposable income in urban areas reached $ 2,515; nearly triple what it was a decade ago. In economically advanced cities such as Beijing and Shanghai, the average per capita income is more than $ 3,810. (Chinas Business Review, 2010) Better living standards have shifted peoples focus from satisfying basic needs to pursuing a higher quality of life, creating significant opportunities for the retail market. Chinas e- commerce market: Chinas on line shoppers grew 45.9% to 108 million between 2008 and 2009 and online nearly doubled to 36.6 billion. This has given success to Business to Consumer Chinas e-commerce market. (Lu, 2010 Chinas Business Review). Waitrose can penetrate Chinese market by taking advantage of ecommerce market. Chinas population and lifestyle: Chinas fast growing population together with the increasing wealth of individuals are the key factors behind retail market expansion. Brand image is one of the important factors in making purchase decisions in China. (Business wire, 2011) Chinas population according to 2010 census is 1.34 billion people with 0.57% annual increase over the past decade. (BBC News, 2011). Chinas removal of Geographic and Ownership Restrictions to retail foreign investors: Under Chinas WTO accession agreement, China committed to gradually eliminate market access barriers for foreign enterprises. According to PRC government in 2004, the administrative measures for foreign investment were issued which allowed foreign investors to establish retail enterprise in china without geographical limitations, also to provide retail services through Joint Ventures (JVs) or Wholly Foreign Owned Enterprises (WFOEs) and to establish foreign Investment Partnership retail enterprises from 2010. This would be a good opportunity for Waitrose.

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THREATS: Restricted Products: Foreign enterprises that provide retail services for certain products including agricultural chemicals, cotton, and grain, oil, and sugar and tobacco face market access barriers. For example only Joint Ventures with majority with majority Chinese ownership may sell different types of brands of these products from multiple suppliers through more than 30 outlets. Foreign investors must take concession on the size and independence of their business to access Chinas market. (Lu, 2010 Chinas Business Review) Complicated Licensing Process: Foreign invested retailers must go stricter licensing procedures than their domestic competitors. The Investor must first obtain a business licence from MOFCOM and then registration approval from the State Administration for Industry and Commerce (SAIC). Domestic retailers on the other hand can obtain licences directly from SAIC without obtaining prior approval from MOFCOM. The licensing process can be slow and inconsistent adding extra costs to investors. (Lu, 2010 Chinas Business Review) Chinas Existing Grocery Competition: Considerable threat to Waitrose would be the expanding grocery sector of China. Americas Wal-Mart, Frances Carrefour, Britains Tesco and Japans Ito Yokado are at a faster expansion in china. Each year they open hundreds of new stores. There is also prominent domestic market such as Liahswa. (Watts, 2010 The Guardian)

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Porters 5 Forces Analysis

Porters five forces analysis is developed by Michael, E. Porter who is Harvard Business School professor in 1979. He identified five forces (Threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, Rivalry among existing competitors), which determine the industrys competitiveness as well as its attractiveness. He advocates that To understand industry competition and profitability, one must analyse the industrys underlying structure in terms of the five forces Industry structure drives competition and profitability, not whether an industry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated.(Porter, 2006) He also states that understanding industry structure is essential to effective strategic positioning as defending against the competitive forces and shaping them in a companys favour are crucial to strategy (Porter, 2006).

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BARRIER OF ENTRY-------MEDIUM The threat of entry in an industry depends on the height of entry barriers that are present and on the reaction entrants can expect from incumbents. (Porter, 2006) China joined the World Trade Organization (WTO) in 2001 and due to the relaxation of the most investment restrictions on foreign inventors in late 2003, foreign players are able to build on their experience in supply chain, logistics and inventory management (KPMG, 2006) The Chinese government issued the measures for foreign investment in commercial sectors to permit to establish retail enterprises in China without geographic limitations in 2004. Furthermore, foreign enterprises or individuals were permitted to establish partnership retail enterprises beginning in March 2010(China Business Review, 2010) However, the licensed process for foreign-invested retailers is typically stricter than their domestic competitors. Also, it is important to be noted that being a Communist government, the Chinese government can control the law and policy on foreign inventors anytime. For example, in 2011, Wal-Mart and Carrefour have been accused of fraudulent pricing practices and as a consequence, 11 of the Carrefour outlets were fined by the Chinese government. (BusinessInsider, 2011) As a result of rapid growth of Chinese economy, the grocery market is also growing fast. China's FMCG market posted a 16.3 percent growth year on year in the first quarter of 2011, which worth more than four trillion Yuan (440 billion Euros) according to the Independent ( 2011). Also, According to Retail Gazette (2011), International food and grocery analyst IGD estimates that Chinese domestic grocery market will be worth 1.042 trillion (878 billion) by 2015. This indicates that Chinese grocery market is profitable and attractive. Key competitors in the industry are: Wal-Mart: It appears in China in 1996 and has about 330 stores in more than 120 cities in China (Financial Times, 2011) and it is the largest hypermarket operator in China, however, its market share in China dropped to 7.5 per cent in the fourth quarter of 2010 from 8.2 per cent in the second quarter.(Bloomberg, 2011) Carrefour SA: It entered the Chinese market in 1995 and is now serving customers at 180 outlets across the country (The independent). Its market share dropped to 5 per cent in the fourth quarter from 5.1 per cent in the third. It is ranked at fourth in the top 10 list (China.org.cn. 2011)
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Lianhua Supermarket Holdings Co., Ltd: It is owned by Bailian Group; the country's largest retailer by sales volume. The company operates about 5,172 outlets in China. It also sells merchandise to wholesalers and offers its products through internet. (Data monitor, 2010) It plans to open 500 supermarket with an investment of $87.84 million to compete with its international rivals.(Global Times, 2010)

CR Vanguard Group: the second largest supermarket with 6.6 per cent share(China.org.cn, 2011) Tesco: It entered the Chinese market in 2004 and currently operates 96 supermarkets and 12 express stores across the nation and recently opens a giant new logistics center. It is also planning to open more than 20 new stores nationwide this year.(The independent, 2011)

The existing foreign players such as Wal-Mart and Carrefour have first mover advantage of establishing the brand identity and acquiring loyal customers. In addition, the domestic key players has a great experience in the Chinese market, which gives them an advantage as they have a good relationships with the government and knowledge of local consumers. Also, according to KPMG (2006), it makes it difficult for new entrant to enter the market as distribution channels and supply chain markets are highly developed by existing competitors. THE POWER OF BUYERS -------HIGH Powerful customers can capture more value by forcing down prices, demanding better quality or more service (thereby driving up costs), and generally playing industry participants off against one another, all at the expense of industry profitability. (Porter, 2006) According to KPMG report (2006), Chinese consumers are highly price-sensitive, although the sophisticated population that value convenience and comfort over price is increasing, however they are still the minority. Therefore the consumers have great power to force the price down, which could lead intense competition among the retailers such as price war. In addition, since their products tend to be standardized or in other word, undifferentiated and also the consumers face no or little switching cost if they wish to change their vendors, which gives more power to the buyers. The possibility that the consumer could integrate backward also needs to be considered. For example, the consumer could purchase fresh vegetables or meat from the farm.

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THE POWER OF SUPPLIERS------MEDIUM TO HIGH Powerful suppliers capture more of the value for themselves by charging higher prices, limiting quality or services, or shifting costs to industry participants. Powerful suppliers can squeeze profitability out of an industry that is unable to pass on cost increases in its own prices. (Porter, 2006) In terms of exporting its products from UK to China, the supplier group of Waitrose has less power as having established the brand identity; there are many suppliers that wish to supply their products to Waitrose. However, if Waitrose is going to source or have some of the products manufactured in China, the supplier group could be powerful as the existing key players could have already dominated group of suppliers, which makes the supplier group more concentrated. According to this is money (2010), sourcing suppliers that meet even the basic requirement of food quality and safety could be very challenging in China. Also, there is a restriction for foreign enterprises that provide retail service for certain products such as agricultural chemicals, grain oil and tobacco. According to Business Insider (2010), only Joint Ventures with majority Chinese ownership may sell different types and brands of these products from multiple suppliers through more than 30 outlets. Under such restrictions, foreign retailers must make concessions on the size and independence of their business to access China's market. In addition the supplier group could integrate forward into the grocery market: foe example, electrical applicant supplier could offer its product directly to the consumers via online. Besides, if there are any switching costs in changing suppliers, it will make the supplier more powerful. THE THREAT OF SUBSTITUTES----------LOW TO MEDIUM Porter (2006) defines that a substitute performs the same or a similar function as an industrys product by a different means. The substitute for the grocery markets products could be the products that offer more attractive price-performance such as discount store that is not popularised in China yet. Generally, for the buyers to switch to another substitute products do not cost them, which could push the threat of substitutes to the medium level.
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RIVALRY AMONG EXISTING COMPETITORS-----------HIGH High rivalry limits the profitability of an industry. Rivalry among existing competitors takes many familiar forms, including price discounting, new product introductions, advertising campaigns, and service improvements. (Porter. 2006) As it was mentioned earlier, Chinese grocery industrys growth is very fast; therefore exit barriers are low. Also the competitors that operate in the grocery market are numerous which leads fierce competition. According to KPMG (2006), there are traditional style markets are still leading channel for grocery retail although domestic supermarkets such as Lianhua Supermarket and foreign hypermarkets that combines department store and supermarket such as Wal-Mart, Carrefour and Tesco as well as convenience store such as 7-eleven, Spar, Family Mart and Lawson continue to open more stores across China and have built their presences. This causes high concentration of the market, which leads the intensity of the rivalry greatest. Due to its intense competition in the market, some of the key players differentiate their products and services. For example, in addition to its existing products, Tesco added the items that are adapted according to Chinese local consumers traditions and lifestyle such as fresh fish and soft shell turtle and ready-to-eat chicken legs and also the company offers lower-priced items than its local competitors. (Daily Mail, 2010) Also, Tesco runs free buses to the store for its consumer as not many Chinese own cars. (This is Money, 2007) In addition, Lianhua Supermarket operates a chain of hypermarkets, supermarkets, and convenience stores to target different segmentations.

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Market Entry Strategy

When decision has been made by an organisation to enter a foreign market, there are a variety of options open to it. These options vary with risk, cost and the degree of control which can be exercised over them. Exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of latter are the simplest form of entry strategy. Truly global operations which may involue strategic alliance are more complex. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access.

Market Entry Strategies

Domestic Production (IFI)
Indirect Exporting Casual Exporting Trading Companies Direct Exportation International Representative Foreign Production (DFI) Contract Manufacturing Licensing and Franchising

Local Agents

Joint Ventures

Foreign Distributeurs Commercial Subsidiary

100 per cent Ownership

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References: BBC News, (28/04/2011). Chinas Census Shows its Population Grew to 1.34 billion 2010. Online http://www.bbc.co.uk/news/world-asia-pacific-13218733 . Accessed on 14/08/2011 Chris Brook Carter (25/06/2010). Just Food Home, News and Insights. Online http://www.justfood.com/comment/waitrose-gains-are-more-than-just-theeconomystupid_id111492.aspx . Accessed on 12/08/2011 Company History Waitrose - Corporate Information. Online http://www.waitrose.com/content/waitrose/en/home/about_waitrose/corporate_information/company_history.history.htm . Accessed on 13/08/2011 John Clague (2010), Annual report-Waitrose Ltd 2009-2010. Online http://www.rspo.org/?q=report/1626 . Accessed on 13/08/2011 (China Lawblog http://www.chinalawblog.com/2007/11/chinas_new_labor_law_its_a_hug.html (CFR, 2011, http://www.cfr.org/china/chinas-exchange-rate-policy-heat/p21455)

(Trading economics, 2011. http://www.tradingeconomics.com/china/inflation-cpi) (China Environment, 2011) http://www.chinaenvironment.net/)

John Lewis Partnership plc. Results for the year ended 29 January 2011. Online http://www.waitrosepresscentre.com/content/Detail.aspx?ReleasedID=1750&NewsAreaID=2 . Accessed on 12/08/2011 Jonathan Watts (26/06/2010) China the Next Supper Consumer. The Guardian. Online http://www.guardian.co.uk/world2010/jun26/shanghai-china-supperconsumer-big-business . Accessed on 13/08/2011 Our company-Waitrose.com. The Waitrose Deference. Online at http://www.waitrose.com/content/waitrose/en/home/about_waitrose/our_company/the_waitro se_diference.html . Accessed on 12/08/2011

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Sheng Lu, May- June (2010). Understanding Chinas Retail Market. China Business Review. Online at http://www.chinabusinessreview.com/public/1005/lu.html . Accessed on 13/08/2011 Reference Porter, M.E. 2006, The Five Competitive Forces That Shape Strategy, Harvard Business Review Kar, A. 2011, Business Fundas, http://business-fundas.com/2011/michael-porters-5-forcesmodel/, Accessed on 06 Aug 2011 References: Harvard Business Press (2005). SWOT Analysis 1: Looking Outside For Threats and Opportunities. Harvard Business School Lawrence G Fine (2009). The SWOT Analysis: Using your Strengths to Overcome Weaknesses, Using Opportunities to Overcome Threats. Create Space Pahl Nadine and Anne Richter (2009). SWOT Analysis- Idea, Methodology and a Practical Approach. Grin Verlag Richard T Dealtry (1992). Dynamic SWOT Analysis; Developers Guide. Intellectual Partnerships, Business and Economics (Computerworld UK| Published 09:16, 25 March 11 http://www.cfoworld.co.uk/news/technology/3266988/waitrose-experiences-major-problemson-new-10m-website/ )

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