Pages: 19 Words: 4662

Assessment 1

Introduction

Case study analysis

Cost Leadership

Walkers Crisps Company is a British snack food company that is established in a highly competitive market where cost leadership is one of the key determinants of industry success. Cost leadership orientation is one of the strategic orientations wherein organizations strive to become the least costly organization in an industry while still delivering value to consumers (Porter, 2022). This paper aims to assess the utilization of cost leadership by Walkers Crisps, a UK-based food industry where some key parameters have been identified including operational excellence, scale economies, supply link, pricing management, encompassing technology, and competitor disposition.

1. Overview of Cost Leadership Strategy in the Food Industry

In the food industry, organizations that can integrate this strategy can secure long-term competitive advantage because they can minimize overhead costs hence maximize production, and cut somewhere that will enable them to meet the price-sensitive consumers’ needs but at the same time remain profitable (Lynch, 2021).

2. Walkers Crisps and Cost Leadership

At present, cost leadership is being utilized effectively by Walkers Crisps to subsequently retain its competitive superiority in the avowed snack food market of the United Kingdom. The large scale of operation and well-developed supply chain help in the procurement strategies that let the company cut down on costs. In creating large-scale production rates of crisps, fixed costs will be dealt out to many units, thus reducing the cost per unit and making it easier for Walkers to have some of the lowest prices that consumers respond to.

3. Economies of Scale and Production Efficiency

Another strategic initiative in the light of cost leadership that supports Walker Crisps is the issue of economies of scale. Large-scale production helps the company to avoid large expenses in the following ways:

Another operational cost relates to the purchases of raw materials; Walkers buy potatoes and seasonings in large quantities, which allows the company to get them at a cheap cost based on long-term contracts.

Advanced Product Manufacturing: A high emphasis on greatly cutting down on the level of human interaction with production by embracing advanced technology. That is why automation increases the quality of a product and reduces variability because the likelihood of making some errors or even wasting raw materials is reduced.

Conservation of water: Walkers minimize their use of water in production and ensure conservation of water resources used such as sea water. Thus, the company achieves cost leadership; thus, reducing the cost of energy consumption, which is one of the main utility costs.

4. Supply Chain Optimization

The firm achieves its cost leadership strategy by adopting the following strategies in its supply chain management for the walkers. This element establishes cost-efficient supply and develops a reliable way to transport the supplies to reduce costs. Key supply chain initiatives include:

Purchasing Policy/Citation of Raw Material: Walkers relies on local producers for most of its potatoes which helps them in minimizing on the cost of transport and the quality of the raw materials.

Distribution Network: The Company has an Integrate Distribution Network to control and distribute the fuel and transportation costs. This is important as there are several factors that determine how fast the products reach their market destination with minimal costs and time as used by Walkers.

Just-in-time inventory management: Walkers has developed long term supply bonds with its suppliers so as to get favourable prices and acquisition of the raw materials. In order to overcome these challenges, the company has device of just-in-time of stocks besides minimizing extra stocks cost.

4. Pricing Strategy and Market Competitiveness

Currently, Walkers Crisps uses strategies of pricing that ensure that it can attract many people especially those who are price-sensitive but still able to generate enough profits for the company. This includes:

Five forces analysis of Walkers includes: bankrupted competitors and market saturation: By keeping the production costs low, Walkers offers products that are favourable to the mass market with relatively low price.

In carrying out all these strategies, Walkers has adopted various Technical Cooperations such as Promotional Discounts and Value Packs where it often undertakes price promotions, multipack offers, and seasonal discounts to improve the perceived value by the consumers without necessarily reducing its profits.

Critical Evaluation of Challenges

The primary issue that affects Walker currently is the increasing consumer trend toward healthy products. Due to rising obesity and other diseases associated with consumer lifestyles, there are regulations made in the UK government through regulating HFSS products. Walkers, in particular, has a traditional crisp range under this category and it influences the advertising and positioning of the product in supermarkets. In response, Walkers has extended its product range offering, thus introducing baked crisps and products with less fat content (Foster and Green, 2024). Engaging in R&D efforts to come up with tasty products with healthy components is a business necessity for Walkers (Walker and Jones, 2025). Besides, issues such as shortage of workforce, and higher fuel charges accentuated the problem of distribution channels. The seven recommendations that learners need to consider include, strategic supply chain management approaches that include establishing long-term contracts with the local suppliers to remove dependence on imported goods. There are also ways of increasing efficiency and managing risks that are associated with implementing digital supply chain analytics and automation. Against this Aras and Crowther, (2012) stated that another social issue affecting Walker is environmental sustainability due to the concern that the organization’s impact on the environment is becoming an issue for corporate entities. The production of crisps requires high energy generates waste and uses plastic packs which is a major concern to both regulators and consumers. Company like reduction of carbon emission, and use of 100% recyclable material. However, much of the work involves the implementation of such initiatives and does so in a manner that can be cost-efficient. It is urgent to comment that sustainability must be incorporated as a core strategic plan at Walkers and the company must commit to green manufacturing along with investing in the pro-ecological packaging technology• (Johnson et al., 2019).

Doing business with environmentally conscious groups can only be good for Walkers in terms of creating a better image and meeting the needs of the customers. This market rivalry persists today and several well-established brands and supermarket private labels/packaged snacks are following Walker closely. Thus, consumers are provided with other snacking options by competitors such as Pringles, Kettle Chips, and the supermarket’s own branded crisps, which are often comparatively cheaper. On the critical note, Johnson et al., (2019) argued that the constant increase in the demand for niche and high-end snack brands also contributes to the rivalry. For Walkers to maintain its dominance in the market, it needs to ensure that it brings in new products, overwhelms the market with promotion and commercial breaks, and sets the most appropriate prices. Based on its brand legacy and consumer base, which is dedicated to Walkers, this company can expand the concept of ‘premiumization with novelty, limited editions, and improved product recipes. Now, with digital transformation and changes that happened in the purchasing habits of consumers, this can be seen as an issue (Kim and Mauborgne, 2015). Hence, the growing popularity of e-commerce and DTC is an emerging factor that demands an enhancement of Walker’s Web or internet-based sale strategies. Store-based sales are still vital, though new competitors weak in store demand focusing on online advertising and e-commerce.

Overcoming Challenges Through Strategic Action

Based on Ansoff matrix, Market differentiation and brand positioning are very crucial in ensuring that organizations do not lag behind competitors. According to Porter (1985), the differentiation strategy proposes that one should align unique value propositions, which Budweiser has as quality and special occasions, to appeal to various consumers. This is an ideal way to follow in the footsteps of Kettle Chips that target traditional and natural processing techniques and quality ingredients. Last but not least, digital transformation has potential growth prospects to undergo (Whittington et al., 2020). According to Chaffey and Smith (2022), e-commerce and data marketing are two important aspects that help to solicit consumer attention. To further enhance its sales power, Walker needs to widen its innovative approach and buy directly through its internet platform and social channels networks, just like the Graze case that was able to establish a unique and efficient web presence.

SAFE analysis for recommendation

Suitability	Market differentiation is suitable for the company as it will assist in developing new products which will assist the company in attracting wide range of the consumers (Elkadeem et al, 2021).
Acceptability	This method will be acceptable as it is based on considering all the latest changes and ultimately it will improve the condition of WalkerCrisp (Evans, 2024)
Feasibility	This is a feasible solution as considering marketing differentiation will be a cost-effective strategy as considering the latest changes will improve the market position (Hooper et al, 2021).
Evaluation	With the evaluation, it is clear that all these options suggested to Walker Crips are feasible as they will be improving the financial position of the company (Teresi et al, 2022).

Conclusion

Walkers Crisps currently experiences industry adversities that have to do with health and wellness drives, supply chain threats, pressures in environmental management, stiffer competition, and digitalization. Each of them has to be tackled by strategic management that includes a focus on product development, supply chain flexibility, environmental responsibility, product differentiation, and digital promotion.

The suggestions proposed for concern to Walkers are increasing investment in new and healthy snack products, relations with suppliers, promotion of sustainability practices, and improving digital communication. To emphasize industrial relations, effective relationships among the key players of the organization can readily be achieved such as management, suppliers, retailers, and ultimately consumers aimed at achieving sustainable long-term objectives. To sum up, using the active, innovation-oriented strategy, Walkers can maintain its market domination and prevent the negative impacts of future changes accordingly.

References

Aras, G. and Crowther, D. (2012) Business strategy and sustainability. Bingley: Emerald Group Publishing. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=452129&site=ehost-live [Accessed 1 October 2021].

Chaffey, D. and Smith, P.R. (2023) Digital marketing excellence: Planning, optimizing and integrating online marketing. Abingdon: Routledge.

Christopher, M. and Holweg, M. (2020) ‘Supply Chain 2.0 revisited: A framework for managing volatility-induced risk in the supply chain’, International Journal of Physical Distribution & Logistics Management, 50(1), pp. 5-17.

Foster, R. and Green, K. (2024) ‘Innovation in the snack food industry: Navigating health trends and consumer preferences’, Journal of Product Innovation Management, 41(3), pp. 215-230.

Grunert, K.G. (2019) ‘International segmentation in the food industry: An illustration from the functional food market’, Journal of Food Products Marketing, 25(8), pp. 801-811.

Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regner, P. (2019) Exploring strategy: text and cases. 12th edn. Harlow: Pearson.

Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regnér, P. (2024) Exploring strategy: Text and cases. Harlow: Pearson Education.

Kim, W.C. and Mauborgne, R. (2015) Blue ocean strategy. Boston: Harvard Business Review Press.

Lynch, R. (2021) Strategic management. 9th edn. London: Sage Publications.

Porter, M.E. (2022) Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

Smith, A. and Brown, L. (2021) ‘Sustainability and the snack food industry: Strategies for reducing environmental impact’, Sustainable Food Systems, 3(2), pp. 45-59.

Walker, H. and Jones, N. (2025) ‘Sustainable supply chain management in the food industry: A case study approach’, Journal of Cleaner Production, 250, p. 119490.

Whittington, R., Regner, P., Angwin, D., Johnson, G. and Scholes, K. (2020) Fundamentals of strategy. 5th edn. Harlow: FT Prentice Hall

Analysing a real-world brand like Walkers Crisps requires more than applying frameworks—it demands critical thinking, clear structure, and strong academic justification. From cost leadership to PESTLE and Porter’s Five Forces, this assignment shows how strategy and sustainability intersect in a competitive market. If aligning theory with practical insights, referencing correctly, or meeting assessment criteria feels overwhelming, expert assignment help can simplify the process. Professional guidance ensures your analysis is coherent, well-evidenced, and tailored to university expectations—helping you achieve stronger academic outcomes with confidence.

ASSESSMENT 2

Introduction

This report aims to evaluate the strategic position of Walkers Crisps, a snack food manufacturing firm based in the United Kingdom using appropriate analytical tools including PESTLE and Porter’s Five Force Frameworks. The purpose of the task is to evaluate Walker’s business opportunities and threats on the external and internal levels of its environment and reveal major strategic issues of the company. It also assesses this threat by analysing the available strategic options to the firm, competition, sustainability, and changing consumer trends. Additionally, the report provides information on how Walkers Crisps can respond to these issues through strategic management action that is underpinned by the concepts explored in the literature and case examples. This way, this report seeks to give an understanding of areas that Walkers needs to focus on to continue as a market leader despite the changes happening in the industry. Knowledge of these factors is important in the ability to sustain the company’s competitiveness in the food industry in the long run.

Case study analysis

Analysis of the Broad Strategic Position

PESTLE Analysis

Conducting a PESTLE analysis is an important way of assessing the macro-organizational forces that affect the strategic context of the Walkers Crisps company and the food manufacturing industry.

Political Factors:

Some UK regulations present in food safety and labelling include the Food Standards Act of 1999. Brexit has also affected the various ways through which direct materials such as potatoes and vegetable oils are sourced from different countries. Moreover, health promotions about obesity have led to policies such as sugar and salt reduction across ships that influence product specifications.

Economic Factors:

General inflation and escalating costs of energy have raised manufacturing costs hence affecting the profit-making ability. Trends in the buying behaviour of consumers have emerged over the years with new information-seeking consumers who look for value for their money. It is affected by the agricultural changes or involvements in the global markets and climate changes that affect Walker’s supply of ingredients (Grunert, 2019).

Social Factors:

New trends towards improved healthy snacks and shifting from animal-based diets significantly affect crisp producers. Some of the steps taken by Walkers have included producing low-fat, baked, and vegan options. It also embodies the modern ethical aspects of consumerism with improvements in packaging and the origin of the ingredients (Christopher and Holweg, 2020).

Technological Factors:

Progress in food production also enhances productivity and product development in terms of quality. Walkers has implemented automation and various forms of supply chain management that involve artificial intelligence. Social media platforms and new technologies have also affected how brands interact with their consumers as well as needing strong digital assets presence online (Smith and Brown, 2021).

Legal Factors:

Some of the legal factors affecting Walker’s management strategies include; This means that legal factors such as food safety laws, advertise restrictions and environmental laws affect this business. The regulations thus directly affect the marketing communications and plans for placement of products within the shops in the UK government particularly those classified under HFSS, which stands for high fat, salt, and sugar.

Environmental Factors:

Some factors that can negatively affect sustainability are carbon output due to production and non-recyclability of most packaging, which compels Walkers to incorporate sustainability practices. It was reported that the company would abolish plastic usage and utilize sourced products from sustainable sources to meet the requirements of the general public and set standards.

Porter’s Five Forces Analysis

This evaluation evaluates the rivalry level and the prospect of making profits for Walkers Crisps in the food sector.

Threat of New Entrants (Low to Moderate):

It is capital intensive through its investment in the manufacturing processes and its distribution channels as well as in developing brand reputation. However, increasing levels of new artisanal brands providing better and healthier types of liquor pose a growing threat.

Bargaining power of Suppliers (Moderate to High):

Due to its dependency on agricultural products such as potatoes and vegetable oil for production, Walkers is vulnerable to supply chain disruptions. Specifically, supplier power is affected by Brexit-related tariffs on the imports of some ingredients and climate change leading to lower crop yields (Porter, 2022).

Bargaining Power of Buyers (High):

These trends mean that consumers are spoilt for choice when it comes to snacking, a factor that puts pressure on Walkers to diversify its product range and remain reasonably priced in the marketplace. There is often a great bargaining power of buyers as supermarkets and retailers can insist on more attractive prices and promotions.

Threat of Substitutes (High):

Major threats that affect today’s crisps market are given below the availability of substitute products like popcorn, protein bars, and fruit products. Conscious consumers may cut down on calorie content or choose to take organic products (Chaffey and Smith, 2023).

Industry Rivalry (High):

Walkers often fight for a share of the market with other brands such as Kettle Chips and Pringles as well as supermarket own-brands. This paper identifies key factors for sustaining the dominance such as price competition, promotion, and product differentiation (Johnson et al., 2024).

Critical Evaluation of Challenges

The primary issue that affects Walker currently is the increasing consumer trend toward healthy products. Due to rising obesity and other diseases associated with consumer lifestyles, there are regulations made in the UK government through regulating HFSS products. Walkers, in particular, has a traditional crisp range under this category and it influences the advertising and positioning of the product in supermarkets. In response, Walkers has extended its product range offering, thus introducing baked crisps and products with less fat content(Foster and Green, 2024).. However, reformulating products can go a long way in matching the changes in consumer behaviour, it is a cumbersome process in helping consumers retain the tastes and preferences of the brand. Engaging in R&D efforts to come up with tasty products with healthy components is a business necessity for Walkers. Other operation and supply chain risks include Brexit, changes in climate, and inflation which affects the supply chain fluctuations. This is because most of the production costs, including the prices of potatoes, and vegetable oil, rise which leads to increasing costs of production (Walker and Jones, 2025).. Besides, issues such as shortage of workforce, and higher fuel charges accentuated the problem of distribution channels. The seven recommendations that learners need to consider include, strategic supply chain management approaches that include establishing long-term contracts with the local suppliers to remove dependence on imported goods. There are also ways of increasing efficiency and managing risks that are associated with implementing digital supply chain analytics and automation (Aras and Crowther, 2012).. Another social issue affecting Walker is environmental sustainability due to the concern that the organization’s impact on the environment is becoming an issue for corporate entities. The production of crisps requires high energy generates waste and uses plastic packs which is a major concern to both regulators and consumers. Nonetheless, efforts have been made with such practices in the Walkers company like reduction of carbon emission, and use of 100% recyclable material. However, much of the work involves the implementation of such initiatives and does so in a manner that can be cost-efficient. It is urgent to comment that sustainability must be incorporated as a core strategic plan at Walkers and the company must commit to green manufacturing along with investing in the pro-ecological packaging technology (Johnson et al., 2019).

Doing business with environmentally conscious groups can only be good for Walkers in terms of creating a better image and meeting the needs of the customers. This market rivalry persists today and several well-established brands and supermarket private labels/packaged snacks are following Walker closely. Thus, consumers are provided with other snacking options by competitors such as Pringles, Kettle Chips, and the supermarket’s own branded crisps, which are often comparatively cheaper. The constant increase in the demand for niche and high-end snack brands also contributes to the rivalry. For Walkers to maintain its dominance in the market, it needs to ensure that it brings in new products, overwhelms the market with promotion and commercial breaks, and sets the most appropriate prices. Based on its brand legacy and consumer base, which is dedicated to Walkers, this company can expand the concept of ‘premiumization with novelty, limited editions, and improved product recipes. Now, with digital transformation and changes that happened in the purchasing habits of consumers, this can be seen as an issue (Kim and Mauborgne, 2015). Hence, the growing popularity of e-commerce and DTC is an emerging factor that demands an enhancement of Walker’s Web or internet-based sale strategies. Store-based sales are still vital, though new competitors weak in store demand focusing on online advertising and e-commerce.

Overcoming Challenges Through Strategic Action

One of Walker's key problems is its struggle to meet the evolving nature of customers and change their dietary habits as well as quotas imposed on products with high fat, salt, and sugar content. In the same empirical study carried out by Grunert (2017), it is evident that fostering product reformulation and clear nutritional labelling does improve the levels of trust among consumers without compromising the firm’s market share. With the improvement in technology in foods, walkers can come up with tasty yet healthy snacks. PepsiCo which owns Walkers has had success with its “Better for You” range that already contains products with reduced fat content and baked products. The disruptions in the supply chain, according to Christopher & Holweg, (2018), need to have some form of supply chain resilience plans. To manage the risks walkers can enter into multiple suppliers and franchisors, invest in analytics, and localize the ingredients. For instance, McCain Foods was able to contain supply chain risk by actually entering into direct buying relationships with the local growers (Lynch, 2021). Long-term commitment remains an important factor, especially due to the current change in that customers are starting to demand environmentally friendly packaging and supply chains. Smith and Brown, in their study conducted in the year 2020 also suggested that an organization can benefit from better environmental performance and product and brand perception by implementing a circular economy. That is why the Walker company is committed to using only recyclable material, but more investments into biodegradable materials, as well as making the production process itself carbon neutral can contribute to better sustainability initiatives. More specifically, Unilever’s sustainable sourcing strategy is a clear example of how sustainable development goals are beneficial for the company’s success. Market differentiation and brand positioning are very crucial in ensuring that organizations do not lag behind competitors. According to Porter (1985), the differentiation strategy proposes that one should align unique value propositions, which Budweiser has as quality and special occasions, to appeal to various consumers. This is an ideal way to follow in the footsteps of Kettle Chips that target traditional and natural processing techniques and quality ingredients. Last but not least, digital transformation has potential growth prospects to undergo (Whittington et al., 2020). According to Chaffey and Smith (2022), e-commerce and data marketing are two important aspects that help to solicit consumer attention. To further enhance its sales power, Walker needs to widen its innovative approach and buy directly through its internet platform and social channels networks, just like the Graze case that was able to establish a unique and efficient web presence.

Conclusion

The above study concluded that analysing and maintaining a good strategic position is much better. The company operates in the external environment and many different types of changes and issues may be faced by the company. Thus, it is necessary for the company to effectively assess and evaluate its position well. In case it will not be implemented then the work will not be effectively managed. The study highlighted that PESTLE analysis was assistive in analysing the current external position and it highlighted that maintaining sustainability is very essential for the successful working of the company. Also, Porter five forces highlighted that competition within the industry is very high and this can affect the strategies of the company to a great extent.