Recently, Kroger executives have discussed selling their convenience stores after a routine business analysis of their assets. They have determined, that investing in e-commerce and technologies will pay off more than current convenience stores. Although, more people prefer convenience stores over traditional groceries stores due to It being a less overwhelming, and usually quicker, many consumers have now turned to internet grocery shopping for their needs. As our technology has evolved large corporations, such as Kroger, must adapt with these technology changes. It is vital for Kroger to compete with large competitors such as Amazon who are changing the traditional grocery shopping. Grocery analytics predict annual double digit growth in online grocery shopping in coming years, compared to traditional stores. With this prediction, Kroger executives need to analyze their assets and make the most economical decision about closing their stores and began investing in new technologies.
Furthermore, they are seeing a turn as new competitors are coming into this industry. Amazon and Walmart have already created technologies, to put them as a competitor. While Kroger, has the plans to create hand-held scanners, in attempt to compete with these larger retail groceries store. However, they must be able to provide funding for
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First, the threat of new entrance is the degree to which barriers to entry make it easy or difficult for companies to enter the industry. For example, Kroger is making it easy for new companies to enter the grocery market, such as Amazon. Kroger is behind in their technology, while Amazon has already created a more convenient shopping experience for consumers. For Kroger to compete with this corporation they need to invest in new technologies to set them apart from other