Competitive advantage in the UK food retailing sector: past, present and future

Abstract

The aim of this paper is to review and critically analyse the internal and external sources of competitive advantage exploited by the major UK food retailers. This aim is designed to facilitate the generation of a chronological and historical explication of sustainable competitive advantage within the UK food retailing sector. The paper begins with a review of the five main theoretical explanations of superior organizational performance. This conceptual overview provides the basis for a more detailed examination of the factors influencing the competitive advantage of companies. This analysis entails a review of industry-level factors as well as the investigation of firm-level attributes. After a brief discussion of the factors influencing the sustainability of competitive advantage, attention is focused on the history of competitive advantage within the UK food retailing industry. Review and analyses suggest that, within this context, competitive advantage is best understood in terms of `competitive eras'. The discussion of past, present and future competitive eras leads to a number of conclusions and implications pertinent to both competitive strategists and retail specialists.