Meijer SWOT Analysis

{ Posted on May 07 2011 by adam | 2,280 views}

Meijer is a privately owned retail industry for grocery and discount. It’s a hypermarket chain an American region. The store chains were founded in 1934 by Greenville and are presently headquartered in Walker, Michigan, United States. The concept of supercenters was basically adopted in 1962. Most of the store chain locations are present in its founded area that is Michigan, other demographic locations including Indiana, Kentucky, Ohio and Illinois.

Strengths

• The company main strength is the diversity of its demographic locations and holds half of 194 locations being present at Michigan, the rest being at other localities.

• The company has a wide range of dealings and services including pet supplies at one end and grocery items at the other. The items like footwear, clothing, house wears, sports clothing, gasoline, electronics, sporting equipment, toys, beauty and health products are also included in the company’s retail.

• The company owns an extremely loyal customer base with a regional bands having strong position.

• The company has a very efficient network of supply chains and 72,200 of the employees are striving for its expansion and efficient services.

• The surveys carried out in United States proved that Meijer ranks high in the quality of produce and this strength of the company has made its existence and popularity possible in front of Wal-Mart, which usually compromises on produce quality to remain entitled in discount stores.

• The company has also inclusions of gas filling stations including biogas and CNG at some outlets along with the convenience stores.

• Meijer has introduced a unique system by dividing the customer types according to the mode of payment to attach some charitable amount to the payment received.

• The company has all time involvement and support extended towards the needy organizations through charity.

• The estimated revenue generated by the company is almost $15 billion.

• The company is considered at the top position amongst the hyper stores selling merchandises.

Weaknesses

• The company has been involved in unneeded interference with the government and political issues.

• The privatization of the company halters its expansion as the capital and the profits are mostly restricted.

• The overall execution of stores has not been consistent.

• Smaller size of stores is mostly required by that if aging population.

Opportunities

• The company expansion towards Chicago making the small stores and pharmaceutical units as their main focus.

• The development of the company through privatization of the products.

• The format of the company is on the process of further development through innovative ideas.

• The market share of the company is very good in terms of food and other grocery items and it competes with the best selling store that is Wal-Mart.

• The company website is earning a very good brand name and has enhanced the company value.

Threats

• The dollar rates decline affects the company’s profitability and turn over the economic condition of the company.

• The biggest competitor that is Wal-Mart always proved a stone in its way.

• The company has been facing the repeated issues of labor union which increases the operational cost of the company as compared to its competitors that are operating at low labor costs.

References

• Official website. www.meijer.com Retrieved on April 7, 2011.

• “Squeezing the Tomatoes”.( February 13, 1995). Forbes Magazine. page 55,

• Meijer, Hank (1984). Thrifty Years: The Life of Hendrik Meijer. William B. Eerdmans Publishing Company. ISBN 978-0802800381.

• article: which refers to Carrefour’s 1987 entry into the US as the “introduction” of the hypermarket concept, though Meijer’s had been using the format for 25 years.

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