Delhaize Group – Romania SWOT Analysis

Delhaize Romania is a European subsidiary of Delhaize group that was initiated in 1995 in Romania. The company’s operating under Romania Delhaize includes Mega Image, Shop’n Go and Red Market. The Mega Image has its dense presence in the Romanian capital, Bucharest. In 2009, a discounted store Red Market was offered by the Mega Image Company as a subsidiary.

Strengths

• Delhaize Romania has opened up 51 stores that are established in comparatively shorter span of time.

• The main area focused is very appealing for the customers to walk in, including Bucharest, Constanza, Ploisti.

• The products included at the stores are very has a wide range having more than 6000 products.

• The average area covered by the stores is more than 600 square meter.

• The revenue generated by the company has major share in Delhaize Company, with the annual revenue of 233 million Euros.

• The company is supported by a number of employees being approximately 2,400 in strength.

• Expansion is the major part of their vision keeping in view the brand quality for the maintenance of the brand’s name.

• The competitors in grocery retail are not in that much long chains as that of Delhaize in Romania.

• Store designs and maintenance is the best wealth earning source.

• The price of the retail item is very well managed as compared to the other private dealers.

Weaknesses

• Local income is not up to the expected level and growth potential is limited.

• Buyer power is limited because of the small network of stores.

• As Delhaize is a Romanian subsidiary under European banner, so the well established European retailers have big market.

• The network expansion is progressing very slowly and security is not up to the mark of supermarkets.

• The main focus remains on the selling of grocery items, unlike the other super stores which covers other profitable items like electronic equipments etc.

• Less attention is paid to innovation in the existing stores, rather all the focus is maintained on expansion of the business empires.

Opportunities

• Membership of European Union would give a sudden boost to the company’s economic take up.

• The quality control assurance will improve buyer’s percentage with increased centralization.