Essay On Kroger

Industry Analysis

The company I chose was Kroger. This company is within the grocery industry. I chose the grocery industry because there are many competitors and many key success factors that can be used. Kroger’s biggest grocery industry competitors are Walmart, Publix, Aldi, and Save a Lot.

Company Product Quality Pricing Customer Service Diversity Net Promoter Score Total

Publix 9 10 9 10 10

Save a Lot 4 2 5 4 3

Walmart 3 2 6 2 6

Kroger 9 8 8 8 9

Aldi 5 3 6 2 1

In the grocery retail industry, Product Quality, Pricing, Customer Service, Diversity, and Net Promoter Score are all very important. For grocery retailers, high-quality produce makes a difference in their sales. The quality and freshness of fruits and vegetables encourage

For example, COVID impacted the inventory of toilet paper, so it made customers try a different and cheaper brand. With the customers trying a new brand they might end up liking the brand and buying that brand from then on forward. According to Supermarket News, a positive customer service experience increases the likelihood that a shopper will return to that retailer for more purchases. Diversity is something that is also overlooked but important. Different grocery stores have different brand choices and if they are not diverse then the grocery industry is missing thousands of customers. According to a Forbes article, a Hispanic man and a manager was speaking and the Hispanic man asked, “Do you see non-Hispanics shopping here?” the manager replied that he does see different diverse backgrounds, and they are “continually learning from our customer base and using that learning to expand

There are direct competitors which are Target, Walmart, Kroger, Whole Foods, and so many other grocery industries. As competing companies grow and become more equal in size and capabilities, their rivalry intensifies, (Book.) Since the grocery industry is so big, most grocery industries have promotions and deals throughout their store to drive sales. As the grocery industry grows, bigger industries will have more advantages when it comes to resources. As rival sellers' products become less different, rivalry increases. (Book.) When other grocery industries offer products that are the same or of a lesser value, the customers have a reason not to be loyal to that industry’s brand. When this happens, customers are more persuaded to switch grocery industries. During today’s inflation, most customers are switching to brands that are lower in price, this can increase the rivalry and make it become a stronger force. There are a couple of different things that can happen within the grocery industry when this happens. One, customers may not want to switch brands because they are accustomed to it, or even emotionally attached, (Book.) Also, when the product price is almost the same, then it is the customer’s decision on what price they want to pay. In the grocery industry, the intensity of rivals increases when there is a more diverse selection of products. When there is an industry that has a