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Kroger (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”


Kroger has a strong market position in the US. The company operates 2,486 supermarkets and multi-department stores in 31 states. The company has a strong market position in the grocery and food retailing segments. One of the company’s banners in the grocery retiling category, Fred Meyer, is the nation’s third largest supercenter operator. Kroger's strong market position is attributed to its wide product range, attractive locations, competitive pricing and brand equity. However, the company faces intense competition from players like Wal-Mart and Costco. In addition, the consolidation in the food retail segment has created big players intensifying the competition. Increasing competition in the US retail market could affect its margins and market share.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor






  • Large retail network
  • Strong market position
  • Three-tier brand strategy
  • Strong distribution system


  • Lax quality control
  • Lack of geographic diversification
  • Milk label tiff



  • Increasing demand for organic products
  • Growing demand for private label products
  • Increasing online sales


  • Increasing competition
  • Rising labor wages in the US
  • Sub prime crisis
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