Entrepreneurial Strengths and Actions to Increase Value Creation

3 to 5 Entrepreneurial Strengths Of The Company

The Kroger Company has maintained a competitive advantage in the retail industry by leveraging its entrepreneurial strengths. One of the strengths is an extensive product portfolio, including various brands and private labels, thus increasing sales and creating economies of scale. Private labels are also popular among customers. The second strength is its large number of stores that attract many customers in the retail market. According to Kroger Company (2022), the company has more than 2000 stores across the United States. The third strength is product diversification. According to Jayathilake (2018), product diversification includes offering a wide range of options for products and services. Kroger’s stores have various products, including essential goods, plant-based meat, and food products. The fourth strength is adequate merging and acquisition strategies. The company uses mergers and acquisitions to expand into new markets by targeting complementary firms with a strong brand image and presence in the market. The fifth strength is effective marketing strategies. The company uses marketing campaigns to advertise its products and services and engage customers to get product reviews for product improvement to increase customer satisfaction.

Major Elements Of The Company’s Approach To Entrepreneurship And Value Creation

One of the elements of Kroger Company’s approach to entrepreneurship and value creation is innovation. The company uses innovation to personalize connections with customers one-on-one to increase customer loyalty and satisfaction. The company also launched a Main & Vine concept in 2016 that includes an Event Center where shoppers view cooking demonstrations, taste various beverages and food, find new recipes, and access a wide range of products, including organic, fresh, specialty, and local foods at affordable prices. The second element is customer loyalty. The Kroger Company uses personalization to create customer loyalty and increase customer satisfaction. The third element is customer focus. The company places customers at the center of its operations. For example, it has optimized customers’ digital experience by providing personalized discovery and inspiration through product content and recipes. The fourth element is price. The company has set affordable prices for all its products to avoid losing customers to competitors. The fifth element is mergers and acquisitions. The company uses mergers and acquisitions to increase shareholder value by expanding into more markets to create more revenue streams. The company also increases shareholder value by investing in in-store associates to rebalance benefits and pay while focusing on performance incentives, certifications, training, and career opportunities.

1 Action The Company Could Take To Increase Entrepreneurial Value Creation

The Kroger Company could increase entrepreneurial value creation by merging with or acquiring retail companies in emerging markets. Mergers and acquisitions can help the company build dynamic complementary capabilities attached to its business model. According to Giniuniene & Jurksiene (2015), a dynamic capability describes a firm’s capacity to build, integrate, and reconfigure external and internal competencies and resources to shape and address the rapid changes in the business environment. Dynamic capabilities can also measure the organization’s capacity to realign and align its operations and integrate competencies and resources to align operations with the business environment. The Kroger Company should focus on emerging markets with limited competition and create a good brand image to increase its market share and customer base, increase profitability, and respond to the growing demand for retail services in emerging countries. However, it is essential to assess the feasibility of investing in various emerging markets and determine whether the company should focus on opening physical stores in the countries or e-commerce based on consumer behavior in the retail sectors and the business concept used by competitors.

References

Giniuniene, J., & Jurksiene, L. (2015). Dynamic Capabilities, Innovation, and Organizational Learning: Interrelations and Impact on Firm Performance. Procedia – Social And Behavioral Sciences, 213, 985-991. https://doi.org/10.1016/j.sbspro.2015.11.515

Jayathilake, H. (2018). Product diversification strategies: A review of Managerial skills for firm performance. International Journal of Advancements in Research & Technology, 7(7).

Kroger Company. (2022). The Kroger Company. Craft. https://craft.co/kroger