Kroger SWOT Analysis analyzes, The Kroger is among the top companies in its sector. Kroger keeps its position in the market by rigorously studying and analyzing its SWOT analysis. SWOT analysis is a highly collaborative procedure that requires a coordinated effort across various departments within the organization including finance, marketing, operations management information systems and the strategic plans.
Did you know? Kroger sold 265 million cage-free eggs in 2014. That accounted for 11.3% of total egg sales.
Kroger Company is among the leading firms within its industry, and it needs to retain this position. Kroger Company is carefully reviewing its SWOT analysis and using it to make strategic decisions. For a SWOT analysis to be conducted of the firm, an interactive process needs to be undertaken by coordinating among all the departments of the firm such as finance, marketing, operations, human resource, logistics, strategic planning, management information systems etc.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Kroger.
Kroger At A Glance – Kroger SWOT Analysis
Company: The Kroger Company
Founders: Bernard Kroger
Year of establishment: 1883, Cincinnati, Ohio, United States
CEO: Rodney McMullen
Headquarters: Cincinnati, Ohio, United States
Employees (Dec 2020): 465,000
Ticker Symbol: KR
Annual Revenue (Dec 2020): US$122.286 billion
Profit net income (Dec 2020): US$2.59 billion
Products & Services: National brand groceries | Health and beauty care items | Meat | Dairy products | Baked goods and fresh produce3aQ
Company Website: www.thekrogerco.com
Competitors: Albertsons | Winn-Dixie Stores | Safeway | Giant Eagle | Dillons | Jewel-Osco | H-E-B. | Big Y Foods | Costco
Kroger SWOT Analysis – SWOT Analysis Of Kroger
SWOT Analysis Of Kroger analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Kroger SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Kroger SWOT Analysis. Below Is The Detailed SWOT Analysis Of Kroger.
Kroger Strengths – Kroger SWOT Analysis
– Outstanding performance in new Markets Kroger has developed the ability to enter new markets and making a success of these markets. This expansion has enabled the company to create a new revenue streams and diversify its risk of the economic cycle in the markets it is operating in.
– Highly skilled employees through effective education and training programs. Kroger is investing massive resources into the development and training of its employees. This results in employees who are not only skilled but also driven to reach more.
– Solid Free Cash Flow Kroger has strong cash flows, which allow the resources needed by the company to invest in new ventures.
– A track record of success in merging and integrating companies through mergers and acquisitions. It has successfully merged a variety of tech companies over the last few years to improve its efficiency and build a stable supply chain.
– High Returns on Capital Investment Kroger is fairly adept at executing new projects. It has also generated positive return on capital investment by creating fresh revenue streams.
– Highly successful with the Go to Market strategy in its merchandise.
– Solid Brand Portfolio Through the years, Kroger has made investments in building a solid brand portfolio. Its SWOT review of Kroger is a good example of this. This brand portfolio is extremely beneficial when an organization would like to diversify in new areas of product.
– Proven track record of creating new products , product innovations and products.
Kroger Weaknesses – Kroger SWOT Analysis
– Financial planning isn’t being executed properly and effectively. The current ratio of asset to ratios of liquid assets suggest that the company could use the cash more effectively than what it does currently.
– Organization structure is suitable for the current business model and limits expansion of adjacent product categories.
– A limited success outside of core business . Kroger is among the most reputable organizations in its field, it has encountered challenges expanding into other product categories in its current style of operation.
– The promotion of the product left many things to be left to be desired. While the product is an excellent product in terms of sales but its positioning and distinctive selling proposition are not well-defined, which could lead to attacks in this market from competitors.
– It is not very successful in merging firms with a different work culture. Like we said earlier, even though Kroger has been successful in the integration of small businesses, it does have its fair share of failures to integrate firms with different working way of life.
– The high attrition rate in the workforce – compared with other organizations in the field Kroger has an increased rate of attrition and has to invest much more than its rivals on the training and developing its employees.
– The company hasn’t been in a position to meet the challenges presented by new players in the sector and has also lost market share in specific categories. Kroger needs to develop an internal feedback mechanisms directly from the sales staff on the ground to overcome these issues.
Kroger Opportunities – Kroger SWOT Analysis
– New customers are coming from the online channels. Over the last couple of years, Kroger has invested a huge amount of money in this online channel. This investment has led to the opening of a an entirely new sales channel for Kroger. In the coming years, Kroger will be able to profit from this opportunity by understanding the needs of its customers better and meeting their needs with massive data-driven analytics.
– The steady flow of free cash gives the opportunity to invest in other product segments. When there’s more cash at the bank the company is able to invest in the latest technologies and also in new product segments. This could open up a new window of opportunity for Kroger to expand its business in various product lines.
– The latest technology offers Kroger with the opportunity to adopt different pricing strategies in the current market. It will help the company to retain its loyal customers by providing excellent service as well as attract new customers by offering other propositions that are value-based.
– The reduction in transportation costs because of lower shipping costs could reduce the price of Kroger’s merchandise, offering a chance to the business to improve its profit margins or transfer the advantages to its customers, thereby gaining market share.
– The economic recovery and the increase in customers’ spending, after years of economic recession and a slow growth rates within the business, presents the perfect opportunity for Kroger to attract new customers and grow the market share of its company.
– Government green drive also offers the possibility of buying Kroger products for the state government as also Federal government contractor.
– New markets are opening up due to a government agreement the introduction of a new technology standards and the government’s accord on free trade has offered Kroger the opportunity to join the market of a new and emerging.
– Lower inflation rate. The lower inflation rate creates more stability to the market and allow credit with a lower interest rate to clients of Kroger.
Kroger Threats – Kroger SWOT Analysis
– The demand for the high-profitable products is seasonal and any unpredictability during peak times could affect the financial performance of the business in the short to medium-term.
– The imitation of counterfeit and inferior product can be a danger to Kroger’s brand, especially in emerging markets as well as the low income market.
– The rising pay rate, particularly movements like $15 per hour, and rising prices in China could put severe stress on the profitability of Kroger
– Laws on liability in different countries differ and Kroger could be subject to a variety of liability claims due to modifications to the laws in these markets.
– There is no regular supply of new products. Over the years, the company has created a variety of items, however they are typically a in response to developments by competitors. The supply of new products isn’t regularly occurring, which results in large and low variations in numbers of sales throughout the time.
– Stable profitability – Intense competition has led to an increase in the number of players in the market over the these two years. This has caused a downward pressure not only on profitability but also on sales overall.
– The latest technologies developed by the company’s competitor, or disruptor to the market could pose a major risk to the industry in the near to medium-term future.
– The growing trend towards isolationism in the American economy may trigger similar responses from other governments which could negatively affect international sales.
Kroger SWOT Analysis Template
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