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... to the merchandise Maintains a competitive retail price at a low profit margin 2.1.2 Weakness * People are sceptical about products which are cheap and therefore not associate them with quality (in UK market) * Poor communications mix * Brand name not as good as rivals 2.1.3 Opportunities * To increase number of concessions in Netto stores by improving selling space * Extend range of the retailer * Improve store traffic * Extending their range of offered services by diversifying into areas previously untapped by retailers e.g. retail banking, new retail formats. * A challenge for Netto will be if they can get 'low price equals cheap' to 'low price equals value' to attract operate number of higher spending customers from social groups A and B * To maximise its products offer and cost efficiency 2.1.4 Threats * The company views competition on industry and regional level * Competition coming from two-levels industry and regional. Industry level - Aldi, Kwik Save, Lidl, ...