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Kroger's Competitive Analysis

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Kroger's Competitive Analysis
Competitive analysis
Kroger has been leading the food market in terms of innovation. In fact, the company was the first food store to introduce a scanning system technology for check out as well as for inventory (Dunn, Fielden, Cliff, Keith, & Murass, 2007, P41). New technologies, such as self-checkout systems and computerized point of sale, has helped grocery stores to cut labor costs and save money. Moreover, Kroger offers online shopping so customers can order their products online for delivery or for pick up from the nearest store. In addition, the company uses the latest technology “Pay By Touch system”. Therefore, customers do not need to use traditional payment anymore. Customers can use “E-Wallet” service which only requires a fingerprint …show more content…
The company operates in three different divisions: “Walmart U.S, Walmart International, and Sam’s Club”. Walmart has some global stores while Kroger has stores only in the U.S. Kroger’s main business is food products whereas Walmart offers different products and service such as discount stores, supermarket, and supercenters. Although Walmart has more diversity products than Kroger, both companies are competing for the same customers through low prices and sale promotions. In terms of market capitalization and enterprise value, Walmart is considerably bigger than Kroger. Walmart and Kroger have a huge size difference and both offer different products, but Walmart received just around 20% weighting in the comparable margins (The Kroger Company, 2015, …show more content…
The company offers quality products through its private-label program and manufactures approximately 40% of the merchandises it sells to its customers (The Kroger Co, 2014, P22). Walmart has more than 4400 stores in the United States of America and Walmart is Kroger the biggest competitor in the food industry. Kroger has shown a constant growth while other grocery and supermarket industry have been facing many challenges in terms of growth. In fact, Kroger has beaten Walmart and Costco in market share and price (Bells,
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