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Post on 24-Jan-2015
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Analysis of Strategic Posture
External Conditions
Economically • Economic conditions • Adapting • Competing
Technological • Technological advances• APPs • Coupons • Rewards points• “Que-vision”
Internal Skills
• Kroger believes in training and Promoting within.
• Kroger uses a program called “World class Leadership”
Personal Values
• Kroger has many avenues setup to assist their associates and their communities. Kroger was recently recognized by Forbes as the most generous company in America, and they also team up and donate to Suzan G. Komen fund. Kroger also allows associates to donate to their “Gold Star” Program, which helps associates that are in need of assistance.
Opportunities and Threats
External
• WAL-MART !!!!• Annually, Wal-Mart has overtaken Kroger at a rate of 3-4%. • Technology• QUE vision is the latest innovation to be added to the shopping
experience. Upon entering the store, QUE vision uses infrared to detect how many people are entering and leaving the store, based upon that they are able to alert store employees that there is a oncoming rush of people that will be checking out.
• Environment:• Kroger has many “green” programs put in place to lower its
overall waste
Internal
• Marketing• Kroger uses its own name brand goods in all of its
stores to lower the overhead cost associated with stocking the shelves.
• Finance• Increases in the federal minimum wage have hurt
Kroger industries over the past few years.• Production• Kroger is currently attempting to increase the use of
its brand name items by 5% annually.
External Environment
Strengths • Multiple formats and solid
market share in major metropolitan areas
• dunnhumby & shopper insights program
• Well known regional brands• Developed private label and
loyalty marketing programs• Pricing image
Threats • High operating expense
structure• Inconsistent productivity
and execution across divisions
• Legacy costs - store base aging rapidly high prices
• Lack of ecommerce
Opportunities • Expansion of Food 4 Less and
Marketplace formats into new markets
• Leverage synergies across Kroger East and West
• Centralizing functions to create operating and merchandising efficiencies
• Beginning to re-capture shoppers and trips
• Expansion into Internet retailing
Threats • Wal-Mart expansion in core
Kroger markets• Gross margin pressure• Labor unions• Competitive threats inside
and outside of channel (Whole Foods, Costco, etc.)
• Aging real estate• Economic downturn
Strategy Formulation
• Core values.• Giving • Brand
Strategy Implementation
• Timing • Financing• Adapting • Consciousness • Staffing • Control system
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