Rewe Romania SWOT Analysis

Rewe Romania is the extension of Germany based Rewe group in Romania. Rewe Romania provides the same services that the Rewe group claims to offer. The Rewe Romania is basically the network of 65 Romanian stores that mainly emphasize on the discounted rates. The industry is a retail type of industry that is privately owned. Rewe Romania established its presence in Romania in 1999.

Strengths

• The company stands at second number in Romania as far as its sales are concerned.

• The company ranks at fifth number by volume of the stores amongst fifteen countries in which the Rewe group has penetrated.

• Rewe Romania is dominating the Romania retail industry by its unique strategy of discounted stores.

• The company operates in three divisions in Romania that is Billa that a general super market chain, Penny that is discount super market along with Penny XXL that is its hyper market and Segros that operates on the simple principle of cash and carry.

• The company is well known for its dealings with partners, retailers, distributors and suppliers. The Rewe Romania safeguards the interests of its stakeholders to the maximum extent.

• The Rewe group is responsible for 25% of the total sales that are generated by the eastern European market that accounts for 3.84 billion Euros as a whole.

• The yearly sales accounted by Rewe Romania are €1,050 millions, which is a commendable figure from 65 stores that are operating in Romania.

• The company is far ahead than the international competitors prevailing in Romania.

• The company substantially beats the international up risers through its Billa stores location in the centers of city.

Weaknesses

• The locations of the company’s stores especially that of XXL Mega discount stores are not that much appealing as the peripheral locations could not enjoy its presence.

• Billa super markets are not equally distributed through out the city, rather being concentrated in the city center. That is the reason of slow progress and economical flow through cash and carry sector.

• Unable to compete with the metro stores in Romania.

Opportunities

• Heavy of investment of €180 to 200 million by 2011 for executing the target of most 200 stores network in Romania.

• The expansion of the Rewe stores throughout the Romania covering almost all the major areas including Satu Mare, Alba, Gorj, Bacau, Mehedinti, , Cluj, Brasove Harghita, Hunedoara, Sibiu, Constanta and covasna.