Please answer the following questions regarding HEB(Grocery store in TX & MEXICO
ID: 449663 • Letter: P
Question
Please answer the following questions regarding HEB(Grocery store in TX & MEXICO)
The position of HEB(GROCERY) in the market. ie, is it first, second or third. And, how much market share does the company have?
The top two selling products of the HEB(GROCERY).
HEB(GROCERY)'s two main competitors
HEB(GROCERY)'s strengths…..
List at least three HEB(GROCERY) weaknesses…
List at least three HEB(GROCERY)
Sales trend over 3-5 years. Is it trending up or down. (A graph would be good here)
Describe HEB(GROCERY) strategy. ie, low cost producer such as Wal-Mart. Or, high end producer such as Neiman Marcus. Be specific and detailed. Remember that our textbook discusses different types of business strategies.
A recommendation of a strategy for HEB(GROCERY) moving forward. Should it change strategy? If so, explain what direction and why.
Explanation / Answer
HEB (Grocery) ranks 1st in its hometown with 52 % market share.
Two top selling products are milk & bakery products (mainly bread)
HEB (Grocery)'s two main competitors are Randall's & Walmart
HEB (Grocery) strengths: schematically divided into different market segments to attract diiferent types of customers, focuses on retailing fine & organic food, locally focussed, involved in charity, most brands are produced in house.
HEB (Grocery) weaknesses: Demographic concentration, Loyalty cards lacking like some other competitors, privately owned - no access to capital market
Three HEB (Grocery): Central Market, Mi Tienda, Joe V's Smart Shop
Sales trend over 3-5 years is trending up
HEB (Grocery) strategy is convinient locations, low prices & friendly people, emphasis on being local
HEB (Grocery) should not change its core strategy which is the reason for its success over so many years, but nothing is stagnant and as it is said only thing constant in this world is change, they should change as per market conditions, Walmart is challenging them on their homeground, like wise they should slowly and steadily increase their foot print in other regions.