![]() Kroger’s workforce consists of nearly 375,000 full-time and part-time employees (Kroger, 2014). Majority of the employees are members of international labor unions. Diversity is an important characteristic of the company’s labor force. Specifically, the workforce consists of old and young employees who are from different cultures, ethnic, and racial backgrounds. Kroger operates supermarkets, convenience stores, and jewelry stores. The supermarkets have different formats, which include combination stores, price impact stores, and multi-department stores (Kroger, 2014). The use of different store formats helps the company to retain its customers by enhancing their shopping experience. Kroger uses a decentralized organizational structure that consists of its headquarters and 20 operating divisions. This structure enhances decision-making processes by giving authority to the heads of the operating divisions to make merchandising decisions. Kroger’s business strategy is to maintain cost leadership while generating good financial returns. However, Kroger’s prices are often not as low as those of major retailers such as Wal-Mart. Kroger focuses on reducing its operating costs in order to sell its merchandise at a low price. This helps in increasing sales, which in turn improves the company’s profits. Kroger prioritizes customers’ needs in order to achieve its profit and market share objectives. This strategy involves listening to customers and using their feedback to enhance the company’s operations. ![]() The feedback enables the company to provide excellent services to customers, stock the right products, set affordable prices, and create a memorable shopping experience (Kroger, 2014). The rationale of prioritizing customer needs is twofold. First, it enables the company to improve its brand loyalty by retaining its customers. Second, Kroger achieves economies of scale as its customers increase due to excellent service quality. As a result, Kroger is able to sell its merchandise at low prices without compromising its financial results. Investing in advanced technologies and innovation is central to the company’s strategy of creating competitive advantages by prioritizing customer needs. The core roles required by the company to achieve the desired innovation include technology innovators and customer service experts.įor instance, in 2013 the company’s technology innovators developed a real-time temperature monitoring system that enables the company to provide the freshest food products in its stores.
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