Kroger Swot Analysis
Strategic Management
Analyzing a Firm
Kroger Co.
Kroger Co. was founded over 125 years ago and is one of the largest retailers in America with over $70 billion in sales for 2008. Kroger operates under various banners, including QuikStop, Fred Meyer, Dillon’s and Kroger Personal Finance. The company has over 323,000 employees. As of early 2008, Kroger Co. operated 2,486 supermarkets and multi-department stores.
Objective
The Kroger Co.'s philanthropic objective is to enhance the quality of life in communities with a concentration of Kroger customers and employees. The Kroger Co. Foundation was created to help the Company meet this goal.
General Guidelines
The Foundation exists for the betterment of the people and communities …show more content…
Local grassroots community organizations
. Capital campaigns; start up grants; and funding for special projects
Strengths: Kroger Co. has a significant market share in 44 markets covering 31 states. This geographical diversity helps the business sustain its competitive strengths. With a valuable private label business, innovative formats and customer service focus, the company can compete against the likes of Wal-Mart super-centers.
Weaknesses: Kroger Co. operates 42 manufacturing plants including dairies, bakeries, beverage plants, and meat plants. Food manufacturing represents a risk of food contamination. A serious contamination can damage the company's brand and hurt corporate profits.
Opportunities: The expansion of the company in 2007 into the finance market provides a strong future opportunity. The Kroger Personal Finance brand provides convenience to grocery shoppers and can potentially mimic the success of Canada's grocery banking, President's Choice Financial.
Threats: A slowing economy with higher levels of inflation affecting the price of food and greater fuel costs impacting transportation cost, the Kroger Co. can have lower profit margins. Cost conscious consumers will shift their buying habits to less high-end foods and gourmet items (with greater margins) to lower margin food …show more content…
Trifonov, Kroger uses a "pull" style of inventory management. According to Trifonov, "The use of a pull system is the obvious choice in the grocery industry where inventory turnover is high and inventory is kept low." Inventory numbers are monitored and when they fall to a certain level the supplier is contacted for restocking.
Sources
-Northern Kentucky University: The Kroger Company: Distriubution and supply chain management analysis for Wegmans and Kroger Co. http://www.nku.edu/~fordmw/memoscm3.pdf -Kroger's Corporate Home on the Web http://www.thekrogerco.com/index.htm -Annual Report Summary of Kroger Co. http://biz.yahoo.com/e/110329/kr10-k.html -Annual Report of Kroger Co. 2006 http://www.docstoc.com/docs/393513/Kroger-Company-2006-Annual-Report -Kroger Case Study
Analyzing a Firm
Kroger Co.
Kroger Co. was founded over 125 years ago and is one of the largest retailers in America with over $70 billion in sales for 2008. Kroger operates under various banners, including QuikStop, Fred Meyer, Dillon’s and Kroger Personal Finance. The company has over 323,000 employees. As of early 2008, Kroger Co. operated 2,486 supermarkets and multi-department stores.
Objective
The Kroger Co.'s philanthropic objective is to enhance the quality of life in communities with a concentration of Kroger customers and employees. The Kroger Co. Foundation was created to help the Company meet this goal.
General Guidelines
The Foundation exists for the betterment of the people and communities …show more content…
Local grassroots community organizations
. Capital campaigns; start up grants; and funding for special projects
Strengths: Kroger Co. has a significant market share in 44 markets covering 31 states. This geographical diversity helps the business sustain its competitive strengths. With a valuable private label business, innovative formats and customer service focus, the company can compete against the likes of Wal-Mart super-centers.
Weaknesses: Kroger Co. operates 42 manufacturing plants including dairies, bakeries, beverage plants, and meat plants. Food manufacturing represents a risk of food contamination. A serious contamination can damage the company's brand and hurt corporate profits.
Opportunities: The expansion of the company in 2007 into the finance market provides a strong future opportunity. The Kroger Personal Finance brand provides convenience to grocery shoppers and can potentially mimic the success of Canada's grocery banking, President's Choice Financial.
Threats: A slowing economy with higher levels of inflation affecting the price of food and greater fuel costs impacting transportation cost, the Kroger Co. can have lower profit margins. Cost conscious consumers will shift their buying habits to less high-end foods and gourmet items (with greater margins) to lower margin food …show more content…
Trifonov, Kroger uses a "pull" style of inventory management. According to Trifonov, "The use of a pull system is the obvious choice in the grocery industry where inventory turnover is high and inventory is kept low." Inventory numbers are monitored and when they fall to a certain level the supplier is contacted for restocking.
Sources
-Northern Kentucky University: The Kroger Company: Distriubution and supply chain management analysis for Wegmans and Kroger Co. http://www.nku.edu/~fordmw/memoscm3.pdf -Kroger's Corporate Home on the Web http://www.thekrogerco.com/index.htm -Annual Report Summary of Kroger Co. http://biz.yahoo.com/e/110329/kr10-k.html -Annual Report of Kroger Co. 2006 http://www.docstoc.com/docs/393513/Kroger-Company-2006-Annual-Report -Kroger Case Study