Kroger Swot Analysis
Strategic Marketing
SWOT Analysis of Kroger Co.
Marcus A. Bradley
Columbia Southern University
Abstract
Kroger Co. as with most of its competition finds itself in a unique and challenging position to maintain market dominance while suffering the effects of a sluggish economy. While having an impressive market share in 44 markets and 31 states, the weaknesses of operating manufacturing widespread operations, open it up to contamination risk and pricing problems from within the organization that must be accounted for either at the supply or demand side. Kroger’s expansion into the finance market proved valuable in 2007 and an the opportunity to expound that success is at the …show more content…
It is the country’s largest grocery store chain and second only to Walmart as the nation’s leading retailer. Either directly or indirectly through its subsidiaries, Kroger reported operating 3574 stores as of 2010 and maintains markets in 31 states. Kroger is notoriously unionized and has a mission and strategy that is focused on providing quality products among all of its subsidiaries and marketplaces which are economically practical and providing superior customer service to its respective consumer base. Over time, Kroger has reached its growth maturity, and now competes directly with Walmart in many of its markets. Currently Kroger’s growth opportunities are through methods such as acquisition of other popular competitors. This opportunity is currently being leveraged by Kroger in the recent acquisition of 212 stores in North Carolina of the ‘Harris-Teeter’ chain (Kroger, …show more content…
This comes through changes in the regulatory structure, the periodic shift in public opinion on the matter of minimum wage laws, and the inflation of economy in general. Union negotiations, while appearing to benefit employees, can widen the profit margins for the company which equate to higher costs for consumers and inherently lower sales. A sluggish economy presents one of the largest threats that Kroger and its competitors face, and it demands the constant attention and adjustment of sales analysts. Due to the size of Kroger’s operations, the organization must track the effects of the economy on a wide range of operational strands; the majority of which are beyond Kroger’s control. None of these industries are more troubling than that of the agricultural industry due to it being the fulcrum of Kroger’s competitive strategy (unlike more eclectic industry competitors like Walmart). Kroger stands to lose profit margins with its higher end prong of its three-pronged Branding Approach as spending on luxury brands tapers off with as a side effect of economic
SWOT Analysis of Kroger Co.
Marcus A. Bradley
Columbia Southern University
Abstract
Kroger Co. as with most of its competition finds itself in a unique and challenging position to maintain market dominance while suffering the effects of a sluggish economy. While having an impressive market share in 44 markets and 31 states, the weaknesses of operating manufacturing widespread operations, open it up to contamination risk and pricing problems from within the organization that must be accounted for either at the supply or demand side. Kroger’s expansion into the finance market proved valuable in 2007 and an the opportunity to expound that success is at the …show more content…
It is the country’s largest grocery store chain and second only to Walmart as the nation’s leading retailer. Either directly or indirectly through its subsidiaries, Kroger reported operating 3574 stores as of 2010 and maintains markets in 31 states. Kroger is notoriously unionized and has a mission and strategy that is focused on providing quality products among all of its subsidiaries and marketplaces which are economically practical and providing superior customer service to its respective consumer base. Over time, Kroger has reached its growth maturity, and now competes directly with Walmart in many of its markets. Currently Kroger’s growth opportunities are through methods such as acquisition of other popular competitors. This opportunity is currently being leveraged by Kroger in the recent acquisition of 212 stores in North Carolina of the ‘Harris-Teeter’ chain (Kroger, …show more content…
This comes through changes in the regulatory structure, the periodic shift in public opinion on the matter of minimum wage laws, and the inflation of economy in general. Union negotiations, while appearing to benefit employees, can widen the profit margins for the company which equate to higher costs for consumers and inherently lower sales. A sluggish economy presents one of the largest threats that Kroger and its competitors face, and it demands the constant attention and adjustment of sales analysts. Due to the size of Kroger’s operations, the organization must track the effects of the economy on a wide range of operational strands; the majority of which are beyond Kroger’s control. None of these industries are more troubling than that of the agricultural industry due to it being the fulcrum of Kroger’s competitive strategy (unlike more eclectic industry competitors like Walmart). Kroger stands to lose profit margins with its higher end prong of its three-pronged Branding Approach as spending on luxury brands tapers off with as a side effect of economic