Publix Super Markets Strategic Analysis

Publix Super Markets Strategic Analysis Introduction Managers at Publix Super Markets can perform a firm-wide situational assessment using strategic analysis, which is a strategic planning approach. It's a handy tool for evaluating Publix Super Markets' current strengths, weaknesses, opportunities and threats in the current business environment. Publix Super Markets is a renowned company in the grocery industry. SWOT analysis is a fast-paced procedure that necessiates strict coordination across different divisions inside a corporation. A strategic analysis framework aids in the identification of internal and external strategic aspects for a company. The goal of this article is to provide a SWOT analysis of Publix Super Markets Inc. Environment Internal Assessment When developing a strategic strategy, a corporation should examine inside for possible strengths and weaknesses. Maintaining a competitive edge requires the accomplishment of the three critical strategic planning processes of formulation, execution, and assessment. A unique competency is a company's ability to preserve qualities that are difficult to duplicate by other firms in its field. The goal of having a plan is to allow a company to work on its shortcomings until they become strengths. In addition to evaluating external issues, businesses should assess internal factors (Harrison, J. S., 2018). This plan will allow the organization to make informed decisions about the best purge techniques. Publix uses an internal factor evaluation to gauge vulnerabilities inside the organization that may have effect on product and market development plans in order to grow the eCommerce market share of Green wise goods and expand the range of their ready-to-eat items. The review also shows the areas in which Publix was eager to capitalize on attaining their goals. Publix is a privately held corporation owned by current and former employees, as well as the Jenkins family. The firm was founded in 1930 by George Jenkins (Publix Company, 2021). The board of directors consists of eight members. Publix is today an employee-owned enterprise with nearly 225,000 workers. Publix's extended family includes communities. Publix contributes to community hunger reduction through a variety of activities. They also help kids with scholarships and feeding programs. Publix is well-known for its community service. They've teamed up with Goodwill to help people in need with contributions (Harrison, J. S., 2018). This year, they plan to contribute over 5.5 million dollars to various food banks. External Assessment External influences are events that may have an impact on an organization's ability to achieve its goals. Conducting external and internal evaluations is an important part of strategic planning. These assessments will offer a company with the information it needs to identify its strengths and weaknesses, as well as opportunities and threats to exploit and develop. Inflation, the value of the dollar, import/export considerations, and unemployment are all examples of external forces (Market Research, 2019). Publix stores have several potential to expand and maintain their position as the Southeast's and Canada's leading grocery retailer. Opportunities Publix may take advantage of the new green deal by partnering with federal and state government entities. Publix has the opportunity to expand due its government contracts. Development of a method to reduce the rate at which prices rise, lowering the credit interest rate and making the firm more stable while also assisting consumers. With some of the modifications implemented, such as online ordering, call ahead ordering, and pick up, Publix is able to keep more precise records of consumers and what they purchase, ensuring that the shop is supplied with those products (Market Research, 2019). Having access to this data opens up possibilities for new revenue-generating goods or operations. Publix may use the data from online consumers to develop new relationships with customers and make more income by utilizing the internet data. Threats Steady profitability has increased the number of company participants over time, placing downward pressure on both overall sales and profitability. Increasing raw material costs may imperil Publix Super Markets' profitability. The capacity of Publix Super Areas to maintain continuous profit growth in some areas is being hampered by a dearth of skilled staff in several global locations. Due to the numerous standards and frequent variations in product specifications in those marketplaces, the corporation may face litigation in a range of markets (Market Research, 2019). Because demand for highly lucrative commodities is seasonal, any unplanned occurrences during peak season might have a short- to medium-term impact on the profitability of the company. The profitability of Publix Super Markets may be harmed by rising pay levels, particularly movements. SWOT Analysis Publix Super Markets Inc.'s SWOT analysis is as follows: Strengths Publix has a solid market position and a good reputation for serviceability and product quality. A vast number of individuals in the United States and across borders are familiar with and recognize the brand. Its position on a variety of local and international lists makes it extremely competitive in terms of brand equity (Fern Fort University, 2021). It has over 1500 shops in the United States of America. I The company's significant market presence is a valuable advantage. Customers benefit from improved service alternatives provided by outlets situated around the country. Weaknesses Lawsuits have been filed against the company in the past. In 1997, a lawsuit was filed against it for discriminating against employees. A few cases for employee-related concerns, such as failure to comply with the Fair Labor Standards Act, are among the others. In comparison to its competitors, Publix has a comparatively moderate expansion rate. To stay ahead of the competition, it should attempt aggressive regional growth. Workers are often happy employees of the firm, but rigorous corporate standards, such as wearing uniforms no matter what, have caused them to think and act badly against the organization (Fern Fort University, 2021). The company's serviceability, or services, are both its strength and weakness on multiple levels. Customers were reported to be dissatisfied with the services offered to them in other sites, despite the fact that the firm supplies higher quality items. Opportunities Publix Corporation has a range of options for gaining the most benefits from the markets. Geographic growth and penetration in established markets are two of them. It has the potential to grow its commercial activities into Asia's emerging economies, such as China and India. Companies like Publix have a lot of potential to succeed in these markets. By establishing tactics connected to product pricing, current markets may be further penetrated. By keeping pricing low or competitive, the firm and its subsidiaries will be able to attract a big number of customers. To make money, the company sells a range of products (Fern Fort University, 2021). Groceries, health and beauty goods, general merchandise, and other services and products are included in this category. The company's private label brands play an important part in the company's success. To optimize its market presence, it can improve its company operations by extending its private label brands in existing and newly acquired regions. Threats The issue of severe competition is the most serious concern that Publix Corporation faces. Wal-Mart's expansion and the cheap pricing techniques employed by these outlets constitute a danger to the corporation. Customers are looking for items that are both excellent in quality and affordable in price. Wal-Mart's cheap price approach has the potential to snare a significant portion of its sales and market share. The firm is on the eve of additional expansion, and its rapid expansion may put a strain on its capacity to preserve its distinctiveness and highquality product units (Fern Fort University, 2021). The company's labor expenses might rise as a result of recent government adjustments to the minimum wage rate. These charges might have a negative influence on the company's business operations by raising the costs of doing business and performing operations. Mission and Vision Statement Although Publix claims to be a global store in their mission statement, we know that this is not the case right now. Publix is currently available across the United States and into Canada. Publix, on the other hand, is working hard to expand into new nations and diversify its business (Publix Company, 2021). The firm has hoped to grow into other nations for years, and they are working toward it, but not yet. So, after reviewing all of this information about Publix, we can see that their purpose statement, "To be the premier quality food retailer in the world" misses the mark. "Dedicated to customer service and community involvement and being a great place to work and shop" is the Publix's vision statement. The vision statement of Publix is similar to that of any other firm in that it aspires to be at the forefront of the industry. Publix has been effective in ensuring employee safety in the workplace, providing several possibilities across the organization, and providing benefits (Publix Company, 2021). The majority of employees are long-term employees who take use of one of the finest advantages, tuition reimbursement, to further their education and advance within the organization. Aside from Publix, each employee may buy stock in the firm to aid with their retirement. Strategies Bargaining Power of Suppliers Because the organization has a diversified selection of suppliers across the world, it is not reliant on a single or small number of suppliers to satisfy its present demands. Wal-Mart is ranked first in terms of supply chain activity, with Publix coming in third following Target Corporation. Publix's market position provides it leverage over its suppliers, threatening them with switching to competitors (S&P, 2020). In the supermarket business, Publix faces little danger of supplier bargaining strength. The Bargaining Power of Buyers In the food and grocery market, purchasers' bargaining power is limited. Buyers are unable to haggle over the price of food or other things at stores. Because their tastes change over time, many shops offer discounts and other similar incentives to their customers in order to allow them to pay lower rates. Customers are unable to change grocery store sales patterns (S&P, 2020). Consumers as a whole, however, determine trends and want high-quality items at reasonable rates, which has an impact on businesses. The Threat of the Entry of New Competitors The industry places some restrictions in the way of new businesses entering the market. This indicates that the danger of new entrants to the business is quite minimal. The low rate of entrance has a variety of causes. The entrance barriers erected by the industry are one of them. In order to enter the market, new entrants will have to follow government restrictions (S&P, 2020). The established players are then shielded by a slew of obstacles, making it tough for newcomers to give them a hard time. Entry limitations, a high capital required, tariff rates, and distribution routes are only a few of them. These impediments make it difficult for them to compete with the established market competitors. Rivalry among Established Competitions With current competitors in the same market, Publix confronts fierce rivalry. All of the national grocery merchants, such as Sears, K-mart, and others, are competitors. Some of them, such as Wal-Mart, the most powerful retailer in the world, might represent a significant threat to the corporation. Many of these competitors also experience customer-related challenges, such as low levels of loyalty (S&P, 2020). This might have an influence on the company's business and operations if they went to a direct rival like Wal-Mart. The competition between established rivals and Publix is fierce. The Threat of Substitute Products or Services In the grocery and food sector, replacement items pose a significant challenge. Substitutes can take many different forms; for example, Wal-Mart's cheap pricing approach may cause customers to change their shop choices. The tendency of supermarkets and warehouses has expanded in the sector over the previous several years, and these are grabbing significant revenues from other market competitors (S&P, 2020). They're gaining market share, and in the next years, they'll continue to increase sales. Conclusion The Publix Company needs to expand its commercial activities to other parts of the globe. This includes an emphasis on Asia's growing markets, such as China and India. It should expand its existing markets by delivering competitive prices or low-cost, high-quality items in order to enhance market share and profitability. It is also critical for the organization to undertake frequent staff audits in order to identify areas that require further training and education. This will boost the staff' capacity to service consumers better in the long run. By doing so, Publix will be able to adjust to changing market conditions by carefully positioning its online presence for customers who choose to purchase online.