Stop & Shop SWOT Analysis
Stop & shop is actually the subsidiary of Ahold and is involved in grocery retailing mostly in northern and eastern America. This super market chain was primarily founded as a different name that is Shop mate by the Rabinowitz family and eventually turned into Stop & Shop in 1947. The present headquarters of company are situated in Quincy, Massachusetts.
• The company is now the biggest food retailers in New England.
• The store has diverse outlet lets in four states of New England along with New York and New Jersey running more than 380 stores.
• The induction of in house products as private labeled products has more hold over the company’s economy.
• The company’s brand image is superb in the regions being served.
• The real-estate of the company has a strong hold over the profitable markets.
• The company owns 80,000 of the skillful employees and the management team is very strong.
• The company though not mostly successful is the follower of innovative ideas; this gesture keeps the company involved in the customer’s vision.
• The company experiences six to seven percent of revenue increase each year.
• The main markets are good at management but the side-line store are least attended by the management team
• In each of the store, unlike its competitors, the investment is HFC (High fixed cost) rather than ROI (Return on Investment).
• The store size and the visited customers don’t increase with time as the company’s presence has grown a bit older.
• The company is highly dependent upon the duties or tolls of the manufacturers.
• Limited areas being served demographically including New England and Mid-Atlantic. All the stores rather spreading apart are concentrated in few states.
• The company shrinks more than it expands. Throughout its history the company has been selling its parts like that of the tobacco stores and Medi-Mart, Medi-Mart were then sold to Walgreen.
• Conversion of Super G stores to Super Stop & Shop Metro stores at New York to enhance the sales eventually covering up the deficit faced by the company by G stores.
• The alliance of the company with Dunkin Donuts and Starbucks, although some of the Starbucks Coffee retailing has been closed at their outlets.
• The major opportunity of the company is launching of the web 2.0 concept based mega advertising campaigns in which the videos related to the brand experience of people were shared on the stopandshop.Tv website.
• The altered format of the company is believed to serve the customers having limited time as the store is designed into a smaller box like structure.
• Cross pricing strategy would earn revenues up to the expected levels.
• The company always hit the ideal locations for their stores and the Rhode Island locations specifically very appealing and is saturating the market and its number of stores at eastern coast is far beyond that of its competitors.
• The capital would be freed up by the divestment of US Foodservice and tops with an opportunity to be reinvested in the United States
• The employee’s strikes through the labor unions as the health contracts are of limited time span.
• The operation cost of the company is at the edge to rise and strategy amendments are needed especially in the case of wages and extra facilities.
• The competitors are getting competitive advantages because of their discount packages.
• The internal stability of the company is at stake.
• The company is facing a number of rivals and competitors at all the presence places as in England Hannaford and Shaw’s Star Market, in New York ShopRite and in New Jersey A&P have their deep rooted presence.
• Bardaro, Michael. (November 29, 2004). Giant’s Merger Hurt Morale, Executive Says.” Washington Post.
• Official Website. http://www.stopandshop.com/. Retrieved on April 12, 2011.