SWOT ANALYSIS

Strengths:

- Turn Around Strategy o (Cost advantage: One Company strategy)
 Lowering costs by leveraging SUPERVALU’s scale. (pooling their resources to achieve economies of scale through standardization.)
 Achieve sustainable pricing by pre-funding

o Achieving a good reputation among customers, (Strategy: Hyper Local)
 Drew inspiration from the independent wholesale customers who were succeeding through localized service.
 Be “America’s neighborhood grocer”

o Centralized Business model
 Changed the culture of each banner acting independently and disconnected from other banners to a more centralized structure
• Centralized point-of-sale (POS system) to stop the limitation of the company’s ability run cross –banner promotion/product initiatives o Useful to measure how much to hold in stock/how much space to allocate for items

• Centralized method of hiring/training store directors/ centralized expectations from store directors o Ex. Annual performance review that encompassed ten competencies and five “success habits”

o Store centric decision making

 Empowering store directors
• Giving store directors decision-making powers to be able to truly become “America’s Neighborhood Grocer.” Giving store directors decision making power allowed them to personalize the store to fit needs of the local community

o Encouraged Collaboration

 Favorable access to distribution network
• YAMMER o Creating a culture of sharing through the online database

o Yammer allowed stores to communicate with each other, helping each other rather than keeping it’s competitive advantage secrets to themselves o Not mandated by corporate so the users who used Yammer truly wanted to use it.

Weaknesses - Price strategy

o SUPERVALU struggles to address the competitive pressures of the growing presence of low-cost