This thesis focuses on which strategic options Dansk Supermarket A/S has in creating Hypermarkets in the event of a more liberalised planning act. The thesis takes into account both internal and external analysis. This resulted in 4 alternative strategies, where one was chosen. The chosen strategy suggests that Dansk Supermarket A/S aims for a more effective exploitation of their 16 Bilka department stores along with opening 2 new Bilka department stores in Hjørring and Hillerød. This would result in Bilka becoming a nationwide Hypermarket. In order for Bilka to be more effective, it will have to use its large scale operations to make a cost reduce strategy. One of the strategies is to set a target to cut cost, which proposition is to minimize prices at basis products. In addition the “Drive Concept” would be introduced in 4 chosen department stores, where it would be possible to pre-order your groceries through the internet and collect them already packed at the department store. This concept model is estimated to increase Bilka`s turnover by 10% and earnings by 5% in 2013. This is of course provided that the consumers are willing to change their normal grocery shopping habits. A consumer study along with my own quantitative analysis shows people currently buy groceries more than 3 times a week spending small amounts at a time. Additionally they prefer to shop close to where they live or work and give high priority to the balance between quality and price. It is believed that some consumers will change their shopping habits with the introduction of the “Drive Concept” as it will make it easy for busy families with young children to shop on the way home from work. On top of that the Bilka Hypermarket has to offer the opportunity for the whole family to go to the department store together and enjoy different activities along with getting the groceries for an entire week at a good prise.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||99|