HEB Grocery Company, LP (H-E-B) SWOT Analysis
HEB is a private company that is deals in retaining grocery. The company was founded by Florence Butt in 1905 and at present the company is headquartered in San Antonio, Texas, United States. The company is mainly based in Texas having a store chain with more than 315 stores. The main products in which the company is retaining includes gasoline, dairy, bakery, frozen food, deli, pharmacy, produce, snacks, sea food, meat and general grocery items.
Strengths
• List of America’s largest private companies that is, Forbes 2006, placed HEB on 11th number.
• The progressive grocer pointed HEB as retailer of the year 2010.
• In the whole America HEB as at 25th position as far as retaining is concerned.
• The company has been involved in charities for long, donating approximately 5 % of the revenue to charitable organization, which earns good will of people automatically.
• The company has marked its name specially in retailing fine and organic food.
• The company has special emphasis on Hispanic shoppers and has very well developed sense of treating them in a correct way.
• The company has schematically divided it into different segments to attract the maximum number of the customers. The segmentation mainly includes Mi Tienda, Pantry food central market, HEB, Hybrid, and HEB Plus.
• The advertisement and private labeling program initiated by the company is very strong.
• The product diversity is easily visible and attracts the eyes of the customers.
• The company holds the loyalty of its 76, 000 employees and senior management is especially very much strong and reliable.
• The brand image has been taken seriously by the company and the brand’s name is very popular across the specific region served.
• The company has its specific brands that are produced by the company’s manufacturing plant like milk, cream and butter.
Weaknesses
• The demographic locations have a room of improvement and the company now concentrated in Texas only can move top some other neigbouribng states at least.
• The company is not at all linked or approached by the capital market as it is privately owned.
• The labor sometimes is not very well organized, especially in the central HEB market.
• The offers like loyalty cards are lacking and there is hardly any incentive that can be enjoyed by the customers in comparison with Wal-Mart and 99 cents especially.
Opportunities
• The company has strong progression in extending the market share of the company.
• Special programs are under consideration for the sales of fresh foods rather than the frozen one posing user friendly company as well.
• The company expansion in Mexico has opened a lot of healthy opportunities for the company as well.
• The company has included a lot of private labeled products on its shelves that considerably
Threats
• The strong retailers having a strong hold on America like that of Wal-Mart and Kroger.
• No appealing offers in comparison with its competitors having a strong network of advertisement in shape of special offers.
References
• “Forbes 400: Charles Butt”. Forbes Magazine. Retrieved from http://www.forbes.com/profile/charles-butt.
• “H-E-B still 11th-largest private U.S. company”. (November 15, 2006). MySA.
• Vaughan, Vicki (2010-10-06). “H-E-B is Retailer of the Year”. San Antonio Express-News (Hearst Newspapers).
• 2007 Top 75 North American Food Retailers, Supermarket News
• Top 100 Retailers: The Nation’s Retail Power Players (PDF), Stores, July 2006.
• Denver Post (January 1, 2010). “H-E-B Kicks-off New Year with Renewed Commitment to Customer Savings by Slashing Prices on More Than 5,000 Products”. Press release.
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