Publix Strategy Proposal

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Publix Super Markets, more commonly known as Publix was founded in 1930 by George W. Jenkins. The grocery chain is an employee owned, privately held company. In 2009, Publix was ranked ninth on Forbes's list of America’s largest private companies and number 99 on the Fortune 500 list of all U.S companies for 2010.  Publix operates in five states in the southeast, Florida, Georgia, South Carolina, Tennessee and Alabama, with its headquarters in Lakeland, Florida. The company employs over 140,500 people between its 1,023 retail locations.They also have cooking schools, event planning locations, corporate offices, eight grocery distribution centers, and nine Publix brand manufacturing facilities. Among the grocery stores, Publix owns Sabor grocery stores that market to the Hispanic communities as well as Greenwise stores that aim to try to imitate the Wholefoods chain. The Publix brand manufacturing center produces dairy, deli and bakery goods as well as several other food products. Along with these operations, Publix owns Crispers, a chain of restaurants in Florida that specializes in salads. In 2009, Publix Super Markets had revenue of $24.3 billion with a Net Income of $1.2 billion.

Internal Analysis
           Publix has many strengths which come from their knowledge as well as dedication to service. Publix Super Markets the highest-ranking super market in terms of customer satisfaction and service and according to a recent survey by Fortune 500 magazine, Publix ranks 89th on the magazine’s list of top 100 companies to work for. The company has product lines, which are aligned to the wellness trend of people eating healthy and “green”.  Publix is community oriented and has become known for having a better product than many of its competitors.
           Among the weaknesses for Publix are recalls, higher prices, a lack of an online presence, and a highly concentrated presence of employees in the stores. The recalls increase costs and damage brand image, while the concentrated presence makes them vulnerable to single economies. There is an increase in an online grocery store presence that Publix has yet to capitalize on and there is a question of whether or not the difference in quality or service justifies the difference in price that customers pay.

           Publix Super Markets most valuable assets are their brand identity, their highly motivated and committed employees, and their knowledge of market demographics. The brand identity is valuable because they decreases buyer power by creating brand loyalty, decreases threat of entry, and rivalry by creating a moderately differentiated product. The identity is rare, as Publix is the only company who can be rated number one in customer satisfaction. The staff is also very valuable to the Publix brand.  A well trained and committed employee helps reduce rivalry by further differentiating the company from similar stores. The employees are rare because Publix has the highest customer satisfaction rating and also a very high employee satisfaction rating. This aspect is inimitable because the path to develop and foster this environment would be nearly impossible to replicate. This is non-substitutable because service cannot be replaced by something else. The staff is exploitable because Publix uses the high employee satisfaction to develop a great environment for employees and customers. The knowledge of market demographics is their most complete aspect of their company. Their knowledge of market demographics is valuable because Publix is able to decrease rival power and decrease the threat of new entry. Publix’s knowledge of demographics is rare because they have the upper hand in marketing strategies throughout most of the states in the south. Their knowledge is inimitable because the south is a very specific market, and they target the aspects of this southern market. The demographics have built up over a long period of time, and another competitor would face a...
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