Why UK FMCG firms profits face the threat of extinction from the strategic threats of Tesco, Aldi and Amazon combined

Key strategic threats facing UK FMCG firms:

  • The battle of the Giants – Tesco, Sainsbury/ Asda and Morrisons
  • The growth of discount formats such as Aldi, Lidl
  • The impact of Amazon and Digital channels (web, mobile & voice)

How can FMCG firms respond to avoid extinction?

  • Better strategic selling practices to counter countering the purchasing functions of the giant retailers
  • Alternative paths (low-cost commodity ultra-low cost business model and highly differentiated value added products)
  • Innovations in products and business models (particularly growing your own D2C capability and channels)