Kroger's Five Forces

The essence of formulating competitive strategy is referred to by its surroundings. However, the right environment is very broad, including in addition to the social economic forces, is a key element of the company is otocze¬nia sector (sectors), in which it competes. Its structure has a strong impact on the determination of competitive rules, and the strategies that a company can use. Forces outside the sector are important primarily in terms of a relative - if external forces usually affect all companies belonging to it, is the key are different possibilities for companies to deal with them.
The intensity of competition in the sector is neither a matter of coincidence or bad luck, but the result of the economic structure and goes far beyond
There are three main competitors SuperValu; Kroger, Wal-Mart and Safeway (vacuum cleaners, 2011). The competition is strong among basic grocery store, how to fight for a low cost. It is a price cut throat competition and other Wal-Mart stores to SuperValu.

Bargaining power of suppliers

The bargaining power of suppliers is high. Food suppliers and other related markets have great power over their customers, which increased the price index are asking for the towarze.Supervalu maintains effective relationships with suppliers and manufacturers, which has a positive impact on their business relationships. It also hired a number of independent retailers that offer delivery of products right into their stores. This strategy is limited to the power suppliers to a certain extent (Annual Report, 2011)
The bargaining power of buyers

The industry for retail grocery stores shows the high bargaining power of buyers. Buyers can always choose to switch to the other grocery store which offers goods at cheaper prices without Affecting the quality of produce. The customers always go that low cost providers. In this case, the biggest threat is SuperValu is of Wal-Mart, Which Provides products at low cost to the large amount of