Kroger Strategic Analysis

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Strategic Analysis Kroger Executive Summary This strategic analysis of The Kroger Company will take a look at the changing trends of grocery retailers, profitability and strategic position. Included is a PESTEL analysis and Porter’s Five Forces model for a closer look at Kroger and the industry. Competition is a big threat and since Rodney McMullen became CEO of The Kroger Company in January 2014 the company has rapidly gained market share and is currently second only to Wal-Mart (United States Department of Agriculture, 2014). With recent strategic acquisitions Kroger is better positioned to sustain their level of growth. There are several problem areas that Kroger will need to stay on top of and plan for how to combat those areas. We…show more content…
The competitive advantage that the company has in so many aspects of its business is what has made The Kroger Company so successful. The business principles that made the first Kroger store successful in 1883 – service, selection and value – continue to guide the company’s operations today. The main problem areas we identified are: ● Intense competition by super stores and online shoppers ● Saturated markets ● Food safety issues in the grocery sector ● Supplier’s quality control ● High operating costs ● Unpredictable future of the economy The Kroger Company has many subsidiaries. Here are a few: 3 External analysis Grocery Store Industry The grocery store industry is a retail business that offers food and other products to shoppers. Grocery stores have changed over time and continue to make new transformations within the industry. The trends relate to what products are available, who and how they are produced, brands and the amount of choices that are on the shelves as well as the amount and quality of the perishable goods that each store carries. The competition to a chain retail grocery store, such as Kroger, is not limited to other chain retail grocery stores. The other businesses that must be considered include local farmers markets, supercenters, discount grocers, club or warehouse type stores and even the ability to purchase items online. The trend from shopping for everything at one

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