number+4+-+Opportunities+and+Threats

// 4. Identify at least 3 opportunities and 3 threats found in the industry. Provide a brief justification of why each is an opportunity or a threat. At this point in your analysis if you have identified ** strategic holes ** in the industry, please present them as opportunities or threats depending upon your point of view //.

Within the grocery store industry, shops are trying their best to focus on the main catalyst of their business- their customers. In order for any grocery store to withstand the competition that they are pressured against they realized that meeting the needs of their customers are essential. Once any market is able to successfully pinpoint their target market they are able to have a competitive advantage over their competitors. In the grocery store industry the buying patterns are becoming more diverse. When buying powers of consumers are becoming diverse, this allows grocery stores the opportunity expand their product selection. For example, within grocery stores, there are new aisles that are specifically catered to organic food, and even ethnic foods. Having these two additions to the product selection, allows more consumers to see the grocery store industry more attractive. According to the article, // __Grocery Store Trends__ //, “grocery stores are exploring new opportunities in urban markets, wooed by the … returning-to-the-city middle and high income singles, young professionals, and empty-nesters”. If grocery stores are able to successfully meet the needs of this new demographic there is a huge possibility for loyal customers. This new demographic can allow grocery stores to “remove less profitable paper good items such as diapers and instead stock the shelves with more high margin specialty items that cater to busy professionals”. This will separate grocery stores from their main competitors of supercenters because they are setting the tone of having high quality products at a reasonable price. Grocery stores can have an opportunity to save on their spending power by utilizing locally grown produce instead of spending money through food retailers. A prime example of how this has been accomplished is the story of Wegmans. Not only does this partnership supports the local farmer, and community it helps to reduce the impact on the environment by shrinking the carbon footprint from the farm to the consumer” (Wegmans site) When customers hear the name Wegmans, they know they are receiving high quality products and services; which creates loyal customers. The main threat that the grocery store industry is being hit with is being able to compete with retail stores that are incorporating grocery items to their inventory. Most of your mom and pop shops and grocery stores that are centrally located within our neighborhoods find it hard to compete with Wal-Mart supercenter stores. According to the article // __Wal-Mart Supercenter vs The Traditional Supermarket__ // “…25 out of 29 supermarket bankruptcies in the past decade had been caused by the arrival of a Wal-Mart”. This amount of bankruptcies that supermarkets are being faced with proves the struggle they have in order to survive in their own market. Not only does grocery stores have to endure the stiff competition against retail stores, but they have to try to overpower how the economy changes. During the last two years, the economy has turned for the worst, creating a “recession”. At this time, there has been a huge growth in the unemployment rate; forcing consumers to think economically with their spending habits. With that in mind, consumers are shopping where they can receive good quality products/ services at low prices. According to // __Fox News__ // “consumer’s acceptance of purchasing store brands are at an all time high”. Consumers are now feeling that you can purchase generic brands at a low affordable price comparison to name brand products. In order to become successful in the grocery store industry, research must be done that can exploit the threats and opportunities in their industry. Being able to distinguish the threats and opportunities will help stores align with their target markets. This will allow grocery stores to cater to the needs of their consumers and possibly have a greater outcome of customer loyalty and profitability.    []   [] 