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