Retailer - Kroger Research Paper Example | Topics and Well Written Essays - 2000 words

Retailer - Kroger - Research topic ExampleThe economical stress has affected the business dues to the current recession. However, it has maintained its position despite the economic downturn because of its marketing strategies and excellent client services.Wal-Mart is the greatest competitor affecting the company. It is known for its reduced prices, and whence it can to drop the grocery prices by approximately 20% because it can be profitable with scummy margins due to economies of scale (Plunkett 141). Kroger may suffer increased price competition. However, Kroger offers products that balances its mix and does not go into flat competition with Wal-Mart. It has focused on developing its domestic markets.The customers put one across a high power in grocery industries because of their regular visits. In addition, switching cost is very low, and they can find similar products from different firms within the industry. In other words, customers are very keen on changes in prices an d new products.Moreover, Kroger is lining legal issues, which may ruin the company image it the case was ruled against the company. Increase in cognitive operation costs can result in more debt because a high percentage was used in restructuring stores. The current economic recession has restricted the industry to refinance debt.Kroger has continued to enhance new technology in order to meet the customers need. Currently, the company has two data centers that conduct research to ensure the customers have quality and safe products. Also, the digital platform ensures that the company communicates with its clients.Kroger has over 2500 stores located in 32 states beneath five retail format namely supermarkets, warehouse stores, convenience stores, and jewelry stores. However, supermarkets account for the largest percentage. These supermarkets further reason in food and drug stores, multi-department stores, and warehouse stores. Due to its wide variety of stores, it caters a broad c ustomer base. Kroger has also