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SWOT ANALYSIS ON Publix Super Markets, Inc

SWOT ANALYSIS ON Publix Super Markets, Inc

Discuss SWOT ANALYSIS ON Publix Super Markets, Inc within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Publix Super Markets, Inc. (commonly known as Publix) is an American supermarket chain based in Lakeland, Florida. Founded in 1930 ...

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SWOT ANALYSIS ON Publix Super Markets, Inc
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Abhijeet S
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SWOT ANALYSIS ON Publix Super Markets, Inc - November 30th, 2010

Publix Super Markets, Inc. (commonly known as Publix) is an American supermarket chain based in Lakeland, Florida.

Founded in 1930 by George W. Jenkins, it is an employee-owned, privately held corporation. Publix is currently ranked No. 86 on Fortune magazine's list of 100 Best Companies to Work For 2010[3] and was ranked No. 9 on Forbes' 2009 list of America's Largest Private Companies and is the largest in Florida.[4] The company's 2009 sales totaled US$24.3 billion, with profits of over $1.2 billion,[2] ranking #99 on Fortune magazine's Fortune 500 list of U.S. companies for 2010. Supermarket News ranked Publix No. 7 in the 2009 "Top 75 North American Food Retailers" based on 2008 fiscal year sales.[5] Based on 2006 revenue, Publix is the fifteenth-largest retailer in the United States.[6] Publix's current stock price is $19.85 per share though it is privately held and not available to the public.[7]

Publix has operations in five states: Florida, Georgia, South Carolina, Tennessee, and Alabama. It employs over 140,500 people at its 1,023 retail locations, cooking schools, corporate offices, eight grocery distribution centers, and nine Publix brand manufacturing facilities. The manufacturing facilities produce its dairy, deli, bakery, and other food products.[8] In addition, Publix owns Crispers, a chain of restaurants in Florida specializing in salads; some Crispers locations are adjacent or built into the already existing deli department in select Publix Super Markets.

Publix stands as one of the largest regional grocery chains in the United States. Its main competitors are national grocery chains IGA, Kroger, SuperValu,and Whole Foods; consolidated retail and warehouse chains, including Wal-Mart, Target, Kmart, Costco, Sam's Club and BJ's Wholesale Club; and several regional grocery chains, including BI-LO, Fresh Market, Piggly Wiggly, Sweetbay, Winn-Dixie and Ingles.

Publix's slogan is "Where Shopping is a Pleasure".


Strengths

* Strong reputation for service and quality
* Fundamental operational measures better than competition turns, growth, and operating expenses
* Location in growing population markets
* Weakened channel competition
* Motivated workforce - ESOP (employee stocked ownership program)

Weaknesses

* Pricing against alternate channel competition
* Difficulty in keeping culture intact across larger areas
* Dependence on a single format

Opportunities

* Expansion and growth geographically
* Frequent shopper data- finding programs that increase ring and frequency
* Format innovation
* Private label - higher margins, helps build its brand

Threats

* Wal-Mart expansion
* Maintaining gross margin competitiveness with high inventories
* Growing too fast might challenge ability to maintain their uniqueness
* Managing increasing regional variations
* Not extremely open to suggestions from vendors
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