S.W.O.T. Analysis of Kroger Co - Term Paper Example

There are 2,461 multidepartment stores and supermarkets owned by Kroger, and 954 of them have fuel centers. Apart from the supermarkets, Kroger operates 375 fine jewelry stores and 784 convenience stores (GlobalData, 2012). All the jewelry stores of Kroger are located in malls, which are situated in leased locations. Eighty-three convenience stores are operated under franchise agreements. Close to 51 percent of the convenience stores managed by subsidiaries were initially operated by company-owned facilities.

The convenience stores provide a limited variety of general merchandise and an assortment of staple food, and, in general cases, sell gasoline. Kroger’s supermarkets stock an average of 11,000 private label items. The company also operates 39 manufacturing plants. The plants consist of 10 bakery or deli plants, 17 dairies, 3 beverage plants, two cheese plants, two meat plants, and 5 grocery product plants. The supermarkets are usually operated under format, which entail combination drug and food stores (combo stores), price impact warehouses, marketplace stores, and multi-department stores (Thomson Reuters, 2012).

SWOT Analysis Description SWOT analysis is described as a strategic planning tool utilized in the assessment of strengths, weaknesses, opportunities, and threats (SWOT) involved in a business venture or in a project. It entails specifying the aim of the project or the business venture and recognizing the external and internal factors that are unfavorable and favorable to accomplishing that objective. The purpose of any SWOT analysis is to recognize the main external and internal factors that are crucial to accomplishing the objective.

SWOT analysis categorizes main pieces of information into two major classes, internal and external factors. Internal factors include the weaknesses and strengths internal to the company or the organization. External factors entail the threats and opportunities presented by the outside environment (Research and Markets, 2012). The internal factors can be seen as weaknesses or strengths depending on their effect on the objectives of the organization. It is important to note that what may look, as strength to one objective can be a weakness for another objective.

The factors may entail all the 4P’s (product, place, price, and promotion), finance, personnel, and manufacturing capabilities. The external factors may include technological change, socio-cultural changes, legislation, competitive position, changes in the marketplace, and macroeconomic matters. A matrix is used to represent the results of the SWOT analysis. However, SWOT analysis has its weaknesses. For instance, it may tend to influence companies or organizations to gather lists rather than reflect on what is crucial in accomplishing objectives.

The resulting lists presented are not critical and lack clear prioritization. For instance, weak opportunities can appear to balance the strong threats (Research and Markets, 2012). SWOT Analysis of Kroger Co. Strengths Kroger Co. has passed through the economic recession with little success because of its strong market position. Kroger held the first and second market share position in 39 out of the 42 major markets in the year 2009. The company’s brand equity offers a strong competitive advantage over the other companies.

In 2009, it was listed 82nd in Global 500 Brand Raking. This strength will continue serving the