Supervalu Inc. Swot Analysis

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History and Background Supervalu, Inc. is the third largest grocery business in the U. S. based in Eden Prairie, Minnesota. “Supervalu’s origin lie in the 1871 merger of the Minneapolis wholesale grocery firms B.S. Bull and Company and Newell and Harrison Company” (SUPERVALU INC, 2010) They currently owns and operate more than 1,550 stores over 40 states, with the combination of 850 food and drug stores. Supervalu also owns several brand names such as Save-A-Lot, Albertsons, Jewel-Osco, Acme Markets, Cub Foods and much more. Most of the multiple brands operated by Supervalu, Inc. are located in regional markets. Albertsons is mainly in the western states, Jewel-Osco is located in Chicago and in the Midwest, and Acme Markets is located in Pennsylvania. Supervalu’s wholesale business operates 33 warehouses and distribution centers. The warehouse supply products to 2,000 independent stores in 48 states and aboard. Supervalu has created a new approach to customer loyalty. The strategy for the customer is the loyalty card. “The grocer is experimenting with segmenting customers and predicting their behavior by overlaying loyalty-card data with demographic, psychographic, behavioral and economic information from external providers.” (Breandel, pg.7) Industry Analysis Industry becomes increasingly computerized to help maintain and track inventory. According to McCrea, “Supervalu turned to technology to streamline its yard operations, improve its docking capabilities, and shave a significant number of man hours from its daily routine.” (McCrea, pg. 30) Before this technology usage, Supervalu manually managed its high volume of traffic and logistical operations. There were often inefficient load movements and it took time to correct the errors due to the lack of visibility in the shipping operations. Trying to find the solution to stop these errors and proceed with

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