Kroger Swot Analysis

Kroger Supermarkets were started in 1883 by Barney Kroger in downtown Cincinnati. Mr. Kroger started his business with the motto: “Be particular. Never sell anything you would not want yourself.” Through the years Kroger has strived to uphold this motto to its customers and to provide great service, the freshest products and expansion to meet the needs of their customer base making it one of the world’s largest retailers. Kroger now has over 2,600 stores in 34 states with $108.5 billion in annual sales. Kroger operates 37 food processing facilities and Kroger was the first grocery retailer to use the electronic scanner.

Kroger’s corporate strategy consists of continuously innovating and creating new ways of bring value to the customer. They were pioneers for many of the things that we now consider norms in grocery stores. In the past, Kroger had rapidly expanded to many store locations to gain market share. This expansion strategy caused them to lose profits in

Headquartered in Cincinnati, Ohio, The Kroger Company is one of the largest supermarket retailers across the United States. Founded in 1883, Barney Kroger invested his life savings of $372 to open his first grocery store at 66 Pearl Street in downtown Cincinnati. (Kroger, 2011). Barney was quite proud. He was the first grocer ever to have a bakery, to sell meat, and to sell other groceries all in one store. From the start, Barney operated his business with a simple motto: “Be particular. Never sell anything you would not want yourself.” (Kroger, 2011). Today, one hundred and twenty-eight years later, the Kroger Company is still following Barney’s motto.

In 1883, Bernard Kroger, who is Kroger Company’s owner, opened the Great Western Tea Company in Cincinnati when he was 22. In 1902, the company became Kroger Grocery and Baking Company after growing to 40 stores in different cities like Cincinnati and northern Kentucky. The company continued growing thorough buying smaller, cash-strapped companies. Moreover, in the late 1920s, the company gained Piggly Wiggly stores, and in early 1940s, the company bought most of the Piggly Wiggly stock. In 1929, the chain reached its greatest number of stores which is 5,575. The company continued buying other stores. After that, the company started opening bigger stores in 1971. In 1987, Kroger sold most of its interests in the Hook and SupeRx drug chains and started focusing on its food and drug stores. Furthermore, Kroger announced that it was purchasing around 75 store (mostly in Texas). Not only Kroger was buying food stores in Texas, but also in Virginia, Nebraska, and New Mexico, which happened around 2000 and 2001. In 2003, Kroger announced Naturally preferred, its own brad products which include baby food, pastas, cereal, snacks, milk, and soy products (Company History-Hoover’s, 2016).

The company has no political pressures on it at present. The political framework of the country bolsters the Retailership businesses. Kroger partook in the campaign began by USO, which is a not revenue

Kroger’s mission is to be a leader in the distribution and merchandising of food, health, personal care, and related consumable products and services. They envision the company will operate in a way that reflects their belief that the organization levels closest to the customer are best positioned to serve changing consumer needs. The mission and vision of Kroger is socialized and dependent on their employees (Retail Industry, 2012).

The Kroger Company uses the broad differentiation strategy. They have business in at least eight different market segments. They operate two thousand, two hundred and fifty-five stores across America and operate under twenty four banners. Their market position ranks among the highest in the nation. They also have a strong bargaining power because of their many endeavors into different market areas. Kroger supermarkets have been in business for one hundred thirty four years and have made a substantial contribution to the business world (Annual report, 2017).

The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing.

In 1883 Bernard (Barney) Kroger invested 372 dollars that consisted of his life savings to open the first ‘Kroger’ grocery. That first store, located at 66 Pearl Street in downtown Cincinnati, would soon turn into the giant retail chain that consists of nearly 2,500 stores all over the country and most recently produced sales of over 76 billion dollars. Barney Kroger was revolutionary in the formation of the modern grocery, in that he was the first grocer to have his own bakery, as well as selling meat and other groceries all under one roof. Kroger was also the first to manufacture the products that he in turn sold in his own store. This was the beginning of what is today one of the largest food manufacturing companies in America.

Kroger has six values providing guidance to its employees about how they do what they do every day to accomplish its mission. These values are:

The Kroger Company grew in 128 years from one store to over 3,500 stores of various banners and products. The Kroger Company is the largest food and drug retailer in the United States and is growing constantly with diversity in the retail market, dealing in food, pharmacies, apparel, jewelry and fuel. Kroger is governed by a 14 member Board of Directors including a Chief Executive Officer. Kroger is a leader in Corporate Social responsibility by maintaining environmental consciousness, social awareness and energy conservation awareness. Kroger is committed to customers, builds diversity and focuses on growth. The company operates a large part of it’s own manufacturing and distribution to increase profit

The Kroger brand was born in 1883, Bernard 'Barney ' Kroger took his life savings of $372 to open his first store in downtown Cincinnati. This location is by I-71 that passes the Great American Ballpark. Barney Kroger, the son of a merchant, had a simple "Be particular. Never sell anything you would not want yourself." This was the credo that would serve The Kroger Co. well over the next 130 years as the supermarket business evolved into a variety of formats aimed towards satisfying the needs of their shoppers in as many aspects as possible. With nearly 3,619 stores in 34 states under 24 different names, such as Kroger, Dillons, Turkey Hill Minit Markets, Ralphs, Tom Thumb Food Stores, QuikStop, Fred Meyer Jewelers, and Littman Jewelers with an annual revenue of more than $70 billion. Kroger today ranks as one of the nation’s largest retailers.

This strategic analysis of The Kroger Company will take a look at the changing trends of

At present time, I believe the two most pertinent factors for the Kroger company are sociocultural forces and environmental factors. According to Orlando,2017, Kroger has formed a partnership with Lucky’s supermarket located throughout central Florida and will open eight more stores in the state adding to their numerous banners. Kroger will have to conduct research on the forces that include lifestyles. cultural differences and attitude that could have an impact on their stores.

Wal-Mart also has a green goal. It claims that their environmental goal is to be supplied 100 percent by renewable energy, to create zero waste and to sell products that sustain our natural resources and the environment(Wal-Mart website 2008).