SWOT Analysis of Meijer
SWOT analysis of Meijer is a strategy applied by the company in order to determine its ability to sustain operations while also maximizing profits. In order to effectively get the analysis, you should start by knowing the business, products it offers and market. Meijer is a discount retail company, headquartered in Walker, Michigan. It deals in a wide range of products and brands including grocery, pet supplies, clothing, home goods, fuel, and electronics among others. Customers can shop for the products from the various stores across the U.S and Meijer’s e-commerce website. Although most of Meijer’s stores are in Michigan, shoppers can also find other stores in Illinois, Kentucky, Indiana and Ohio.
What is SWOT Analysis of Meijer?
SWOT analysis of Meijer basically discusses the strengths, weaknesses, opportunities and threats of the discount hyper market chain. For a retailer like Meijer, sustainability and profitability are key in business and the best way of ensuring this is through analyzing its strengths, weaknesses, opportunities and threats.
This SWOT analysis is meant to help Meijer in determining its place in the market and working out ways on how to ensure that it remains profitable in the future. Read on for a comprehensive SWOT analysis of Meijer and measures on how the company can ensure greater performance.
Meijer’s wide product and brand portfolio is one of the reasons it has been able to stand the test of time in the market. The stores stock various products by different brands which ensures convenience and customer loyalty. Meijer’s fuel and gas business is one of the significant products that attracts many shoppers to Meijer’s stores.
Meijer has earned a name for itself in the industry as one of the largest retailers in the United States, which many customers identify with.
The diversity of the demographic locations of Meijer’s stores is also another aspect of strength.
The efficient supply chain infrastructure created by the company has enabled it to win the hearts of many customers since they can always get the products they need without inconvenience.
Over the years, Meijer has been involved in various charity activities and this has enhanced the popularity of the brand and its customer base.
Meijer has displayed very high ratings in terms of product quality, a fact which has continued to attract more customers to its stores.
Just like other retailers in the United States, Meijer also has some weak points that require adjustment for success. One of them is the company’s recent involvement in legal and political battles. This weakens its image and may negatively hamper sales in the long run.
The larger size of Meijer stores is also another impediment, which could negatively impact purchases by the aging population that prefers smaller stores.
Since Meijer is mainly based in Michigan, it is faced with the challenge of ensuring uneven distribution. As a result of this, stores in some areas are often overwhelmed while others remain idle.
The concentration of the retailer’s stores in the U.S limits its chances of tapping revenues that come with expansion into global markets.
There are various opportunities that Meijer can still exploit for increased sales and revenue base. Some of the key areas where the company can focus on for success include:
- Global expansion into markets of growing economies
- Increased use of digital media and online shopping
- Greater market share in food and grocery products than its competitors
Decline the dollar rates is one of the threats facing Meijer considering that most of its stores are based in the United States.
Stiff competition by retail giants like Wal-Mart is also another point of concern to the company.
Pressure from labor groups about workers compensation may shoot up operational costs, hence, cutting down revenues.
Recommendations on SWOT Analysis of Meijer
The above SWOT analysis of Meijer reveals that the company is quite strong to stay on course in the market. However, it still needs to emphasize on the following recommendations for greater results.
- Consider expansion into viable foreign markets
- Adherence to labor laws
- Intensive online campaign
Owing to complaints about Meijer’s in-store execution, it should also formulate policies to ensure consistency and better customer service.
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