Almacenes Exito SWOT Analysis
Almacenes Exito is a retail company having based in Colombia the major businesses of the company are insurance, finance, real estate business, food, traveling agencies’ business, attire and clothing and service stations. The company has range of 260 multi-format outlets which are operating in 52 different vicinities. The company’s product range is comprised of foodstuff, fruit, vegetables, meat, attire and clothing, house hold accessories, televisions, sound systems, sports equipments, and accessories.
• Central and leading point in Colombia is the main strength of company, at present the company is having a central and market leader’s position and it has given the competitive advantage to the company.
• Diversification in arrangements and target segment of customers is one of the major factors of strength for Almacenes, the company has very well managed the diversification of its business in different retail businesses
• The company has very well managed the segmentation of its targeted customers by providing them with the availability of each and every thing/ required commodity within minimum possible time and also making available the demands and requirements of customers.
• Partial competition is the major strength of the company because the recent analysis and research show that there is a growing stage of retail business in the country and thus the company has got the advantage of less competition.
• The company is able to fully focus on its growth and capturing more and more customer and segments, as it needs not to worry about much competition .Retail food and other stuff in Colombia are very low.
• The company is currently having a strong and top of mind brand image. All the brands of the company are very well managed and they have created a strong image of the company amongst its customers.
• Due to the high quality of services and products the company is having a strong and loyal customer base.
• Effective geographical coverage is the strength of Almacenes, the company has covered the wide geographical location and has made available all the services and products to its customers.
• The company is very strong in managing segmentations and thus it has loyal customer base.
• Corporate governance of the company is major strength. The company is involved in the activities related to corporate governance, it also participates in charity programs and the company is on the way to build strong corporate image by getting involved in the activities of corporate social responsibility.
• Strategic alliances with foreign partner (Casino) provide exchanges of best practices.
• The company has adapted with the changes which are accruing due to globalization and the strategic alliance with Casino has let the company to adopt best practices.
• Company is not able to manage too many brands and formats altogether at a same time.
• Replicated managerial structure with the acquisition of “Carulla- Vivero”
• Many of the stores are outdated and thus need renovation and restructuring.
• Economic favorability is a source of enhancing consumer and consumption sector.
• The Increase in purchasing power and consumption pattern of families is an opportunity for company as it will increase the consumption of food and non food items.
• A shift of customers form informal to formal retail shopping.
• Increase new entrants in retail sector. (Carrefour and Falabella from Chile)
• The “Brand repositioning” can become one of the reasons to keep out some loyal customers
• Recession in Colombia’s economic standpoint could limit possible growth of the retail sector
• There is a threat of diversion of focus for the company while going for the diversification of business.
• Wiki SWOT, (2009). Accessed from: www.wikiswot.com on 27th March 2011.
• Almacenes Exito S.A (EXITO) – Financial and Strategic SWOT. Analysis Review Published on March 2011.
• Exito-Cadenalco dress up for merger. (2001).