SMBP Assignment

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Mohit Lasod- 2022hb21377

1. Kroger is recognized by Forbes as one of the most generous companies in America due
to its active support for various charitable causes, including hunger relief, breast cancer
awareness, support for the military and their families, and contributions to schools and
grassroots organizations. Kroger also donates food and funds equivalent to 200 million
meals annually through Feeding America food bank partners. Being generous can be
consistent with being highly profitable, as it enhances the company's reputation and
goodwill among customers, potentially leading to increased loyalty and sales.

2. I normally shop from DMART Supermarket because of following reasons- Pricing,


Product Variety, Quality, Discounts and Offers, Location, Customer Service, Brand
Loyalty

3. If Ahold and Delhaize were to merge, it could result in a more price-competitive grocery
business. Kroger's response could involve strategies to maintain its competitive edge,
such as focusing on product quality, customer service, or expanding its online grocery
ordering and pickup services to stay ahead in the changing market.

4. Kroger Co financials shows the revenue growth & profitability has become almost
stagnant, it is having small single digit growth since last 3 years. An average P/E ratio can
signify a subsector neutral price for a stock and an average growth expectation. KR is
trading at a valuation on par with its peers. It is having Price/Earnings ratio of 19, which
is average.

5. When comparing Kroger with Amazon it is seen that Kroger is losing the ground to
Amazon, post launch of Amazon grocery stores in major American cities. The initiative
offer "products at lower price points" than wholly owned Whole Foods while cutting
into market share at rivals that also include Dow component Walmart Inc. (WMT),
Costco Wholesale Corporation (COST), Target Corporation (TGT) and Dollar General
Corporation (DG). The conclusion is Kroger is facing huge competition from its rivals
impacting its financials & growth. Kroger need to take immediate actions to counter this
such as acquisition, pricing competitiveness, etc.

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