SWOT Analysis: Regional Grocery Chain Cost U Less

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SWOT Analysis: Cost U Less

After performing a SWOT analysis on regional supermarket chain, Cost U Less, it is apparent that the organization has a strong future, assuming it can address its weaknesses and take advantage of the available opportunities.

Strengths
Cost U Less has a number of strengths. The chain has its own distribution center. It has in house-buyers and the ability to deliver to each of its stores through its own transportation department. This eliminates an extra layer of management and expense. In addition, this entire system allows better control of the operation, in terms of product selection and costs. Another strength of the operation is the company culture. The organization's founder, is still actively involved in the day-to-day business, owns the organization. This adds passion and drive to our culture, from the very top. Mr. Smith is personable and sets the tone for the organization, both by his enthusiasm, as well as his drive to increase market share and customer satisfaction. It is a pleasant place to work and this is reflected in the way that consumers are treated (since employee relationships directly impact consumer relationships).
The organization's emphasis on private label brands is another strength. Cost U Less's private label brands represent quality at a great price to our consumers. Since these products are only available at Cost U Less stores, consumers must return to our stores to get the products. Our private label brands generate higher margin dollars than branded products, so it is a successful strategy for all involved.

Weaknesses
The supermarket industry is a fragmented industry (Wheelen & Hunger, 2010), in which there are many small and medium size companies competing ...