WinCo Foods SWOT Analysis
WinCo is the private or employee owned business whose headquarter is in Boise, Idaho. WinCo name was suggested by the employees of the company in the competition organized for renaming the company, and is abbreviation of winning company. Primarily in 1967 the two stores namely Cub Foods and Waremart were established and their amalgamation in 1999 resulted WinCo foods.
Strengths
• Majority of interest is purchased by Employee Stock Ownership Plan; a trust that increases the unique business structure.
• By its constant success, it has increased the number of stores to seventy in different areas especially in United States served by overall 1000 employees, 2000 serving in United States only.
• The company has engaged in three distribution centers and has also arranged free delivering trucks for the convenience of their customer
• The prices given by the company was so much satisfying that the situation turned over and competitors started struggling for the shares of WinCo foods.
• Regional retailers are also established in United States.
• Annual increase in the profitability is approximated as 20 %.
• Market position of the company is very dominant that attracts the investors.
• In the nation’s largest 500 private companies, winco is placed on 28th position.
• Low price is the main purpose of the company which really works in increasing the sales.
• The company has timely initiated the replacement of small stores by the bigger ones with approximated area of 70,000 to 90,000 sq feet. This change appealed the target customers and revenues gradually increased.
• The diversity of products is also facilitative for customers as Bakery, dairy; seafood, gourmet, snacks, tobacco, frozen food, bulk food, deli, organic items and general foods etc are all retailed at WinCo outlets.
• Company’s revenue is US$3 billion.
• The real estate of the company covers the states of Idaho, Nevada, Washington, Oregon and California are operated by the company.
Weaknesses
• Because of private ownership, there’s no increase in the capital gain which becomes major inability of the company.
• Opportunities granted by the company are very limited according to the exposures.
• The consistent enhancement of stores by enlarging them could not appeal the customers, so the strategy change is demanded.
• Products are not purchased by the customers in bulk quantity.
Opportunities
• The company is engaged in the better discount facility for the attracting the customers.
• The demand for the product i.e. healthy food is increasing day by day.
• As it’s the private company so there is a great growth in a private label.
• The better development of the company is accompanied with numbers of stores expanded along with the huge national brand selection.
• Better facilities like medical, paid vacations and retirement benefits are provided to the employees of the company.
Threats
• Labors demand for increasing wages is rising with time due to inflation.
• The great market competition creates somehow intensive competition.
• There is a strong need of established Ecommerce sector to keep pace with the growing demands of the customers and winco foods is not fully established in this area.
References
• “WinCo Foods Company Overview”. (2009). Hoover’s, Inc.
• “WinCo Foods Inc. — Company History”. (2009). Funding Universe.
•WinCo Foods, LLC (2010). “WinCo foods announces grand opening of new store in Roy, Utah”. PR NewsWire
• “WinCo grocery chain plans Arizona expansion”.(2011). East Valley Tribune.
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