Kroger Modified SWOT Analysis. Company Description: Founded in 1883 by Barney Kroger, it is one of many well-known American retail companies, considered to be one of the largest grocers in the nation with almost 2,800 grocers in 35 states. Customers can find a wide range of items all in one place, such as pharmacy, quality services, gas, home products, and groceries. Their formats include supermarkets, seamless digital shopping options, price-impact warehouse stores, and multi-department stores, offering a variety of national brand apparel and general merchandise. SWOT Analysis Strengths Weaknesses - Effective Marketing Strategies: Their commitment to heavy investments into promoting their brand through various channels such as TV, print, …show more content…
Charitable Contributions within Community: Their mission statement is centered around hunger in the community as well as eliminating waste. According to their current numbers, they are doing a great job in showing how committed they are to that mission, directing more than $1.9 billion in charitable donations. High Operating Expenses: Their extremely high operating expenses result in little to no profit margins, which means there is less money to re-invest back into the company, which hinders its growth. Lack of International Presence: All of Kroger’s sales being derived from the U.S. indicates a lack of geographic diversification. Geographical diversity allows an organization to balance the performance of one region with another. Merger Risks: Kroger’s recent attempt to merge with Albertsons has created somewhat of a frenzy. The $25 billion acquisition presents significant integration risks to the point that the FTC decided to get involved in doing everything in its power to block it. Opportunities Threats - Improve E-commerce: Kroger is already familiar with e-commerce and digital technology; however, this is still a …show more content…
These factors, which can be classified as opportunities or threats, depend on their impact on the company’s operations. Market trends, particularly advancements in technology and the introduction of new products, have contributed significantly to their competitive advantage. They are currently being recognized for partnering with Nuro, Cluster Truck, Microsoft, and Ocado. These partnerships were put into place to help enhance a seamless customer experience that would offer their customer base anything, anytime, anywhere. According to a statement from their CEO, they are fully committed to providing convenience and immediacy. A recent article gives all the details regarding some of the new products Kroger has released or is in the process of releasing. Consistently updating their product offerings will continue to be a great selling point for them, especially when they are using their own brands to do so. They have begun a release of seafood products to make this type of food more accessible at home. The company’s ability to adapt to an industry that continues to change will lead to greater success. Kroger Co. has a long history of inspiring and motivating people by knowing exactly what it means to have a mission and values and sticking to those. They are all about honesty, integrity, respect, diversity, and inclusion. They have created