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Elaborative SWOT Analysis of Publix – One Of The Largest U.S. Regional Grocery Chains

by | Case Studies | 0 comments

In our previous blog, we studied the marketing mix of Walmart, one of the most well-known multinational retailers. Here we will be doing a deliberated SWOT Analysis of Publix.

Publix is one of the largest U.S. regional grocery stores chain which is operating in the United States since 1930. Publix is an employee-owned supermarket that continues to remain deeply dedicated to customer service and community involvement. This makes Publix one of the great places to work and shop.    

Furthermore, Publix has been putting money into effective marketing methods. The current global situation is pushing towards digitalization, and if you’re interested in learning more, check out our Free MasterClass on Digital Marketing 101 by Karan Shah, CEO, and Founder of IIDE.

Do you know how a firm evaluates its environment? SWOT Analysis is one of the most often used approaches. In this blog, we’ll take a closer look at the SWOT Analysis of Publix. 

Before we get started with the SWOT Analysis of Publix, let’s learn a little bit about the firm, its products and services, and its competitors.

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About Publix

Publix supermarkets are frequently known as Publix is headquartered in Lakeland, Florida. The founder of Publix is George W. Jenkins. It is a family autocratic company that is wholly owned by previous and current employees and members of the Jenkins family.

Publix operates in 7 nations of the Southeastern United States which include Florida, Georgia, South Carolina, North Carolina, Virginia, Alabama, and Tennessee. Publix is a widespread business that operates in various areas of public needs such as pharmacy, food market, cooking in school, restaurants, grocery, dairy, bakery and other food products.

Quick Stats on Publix
Founder George W. Jenkins
Year Founded 1930
Origin The United States
No. of Employees 22,500
Company Type Public
Market Cap $ 14,215 Million (2019)
Annual Revenue $ 38.1 Billion (2019)
Net Income/ Profit $ 3.001 Billion (2019)

 

SWOT Analysis of Publix - Publix At North Georgia
(Publix At North Georgia, Source: The Business Journals)


Products & Servies by Publix

  • Food & Grocery
  • Event Planning
  • Money Services
  • Online Shopping
  • Home Delivery
  • Pharmeasy 
  • Real Estate


Competitors of Publix

  • Whole Foods Market
  • Target
  • Walmart
  • Harris Teeter
  • Kroger


Now that we understand the company’s key business, let’s look after the SWOT Analysis of Publix.


SWOT Analysis of Publix

SWOT Analysis of Publix is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.

With the growing neck-and-neck rivalry in membership warehouses, it is critical for organizations like Publix to examine the business environment.

To better understand the SWOT analysis of Publix, refer to the infographic below:

SWOT Analysis of Publix - SWOT Infographics of Publix

Now first let’s begin with the strengths of the company from the SWOT analysis of Publix.

Strengths of Publix

As one of the leading corporations in its industry, Publix has numerous strengths that help it to thrive inside the marketplace vicinity.

  • Educated Employees: Exceedingly skilled group of workers through a hit education and gaining knowledge of applications. Publix is investing in the education and improvement of its employees ensuing in a group of workers that isn’t always only surprisingly professional, however, additionally stimulated to reap extra.
  • High-quality Performance in New Markets: Publix has built understanding at coming into new markets and making fulfilment of them. The expansion helped the organization to build new sales circulation and diversify the economic cycle it operates in.
  • Robust Brand Portfolio: Over the years Publix excellent markets have invested in constructing a robust emblem portfolio. This brand portfolio may be extremely beneficial if the business enterprise desires to make it bigger into new product categories.
  • Sturdy Provider Community: It has constructed a tradition among distributors & dealers in which the sellers no longer simplest sell corporation’s products but they additionally put money into schooling their sales group to explain the product advantages to the purchaser.
  • Strong Distribution Network: Through the years Publix has built a reliable distribution community that can attain the majority of its ability marketplace.
  • Desirable Returns on Capital Expenditure: Publix is tremendously successful in the execution of new tasks and generating proper returns on capital expenditure by constructing new sales streams.


Weaknesses of Publix

Weak spots are the regions in which Publix can enhance upon. The approach is about making alternatives to build on its competitive advantage and strategic positioning.

  • Demanding Situation: Publix has not been able to address the gift of the demanding situation by using the brand new entrants inside the section and has misplaced a small market percentage in the niche classes.
  • Not That Successful in Development: Investment in research and development is under the fastest growing gamers inside the enterprise. Although Publix is spending above the industry average on research and development, it has not been capable of competing with the main gamers in the industry in terms of innovation. 
  • Fail to Merge Companies: Now not pretty a hit at integrating companies with a special painting lifestyle. As referred to earlier even though Publix is a hit at integrating small groups it has its proportion of failure to merge companies that have one of a kind paintings culture
  • Demand Forecasting: Not good at product demand forecasting due to a higher rate of ignored opportunities to evaluate its competition. One of the reasons why the times inventory is excessive compared to its competitors is that Publix’s isn’t always excellent at calling for forecasting; this ends up preserving better inventory each in-house and in a channel.
  • Advertising & Marketing: The advertising and marketing of the products left a lot to be preferred. Even though the product is a success in phrases of sales but its positioning and precise selling proposition aren’t always defined, which could lead to assaults in this phase from the competition.
  • Restricting Expansion: The organisation structure is most effective well-matched with the gifted enterprise version, therefore, restricting expansion in adjacent product segments.
  • The Excessive Attrition Rate in Painting Pressure: Compared to different agencies within the industry Publix has a better attrition charge and has to spend plenty greater to evaluate its competitors on schooling and development of its personnel.


Opportunities for Publix

  • Starting Up Latest Markets Due to Government Agreement: The adoption of new technology general and authorities loose trade agreement has furnished Publix fantastic Markets with a possibility to go into a brand new emerging marketplace.
  • Government Inexperienced Pressure: This additionally opens a possibility of procurement for Publix to merchandise via the nation as well as federal government contractors.
  • Decrease Inflation Charge: The low inflation fee brings greater stability in the marketplace, permitting credit at lower hobby prices to the clients of Publix
  • Development in Market: The marketplace development will cause dilution of competitors’ gain and permit Publix to increase its competitiveness compared to the other competitors.
  • The Market of New Generation: The new generation gives a possibility to Publix to practice differentiated pricing approaches within the new marketplace. It will permit the firm to preserve its dependable customers with first-rate providers and lure new clients via different value-orientated propositions.
  • New traits: within the consumer conduct can open up new markets for Publix. It presents a wonderful opportunity for the enterprise to build new sales streams and diversify into new product classes too.
  • New Clients From Online Channels: Over the past few years the company has invested a giant amount of cash into the web platform. This investment has opened a new sales channel for Publix. In the following few years, the company can leverage this opportunity through knowing its patrons better and serving their wishes through the usage of big facts analytics.

SWOT Analysis of Publix - Publix Bought Customer Services Experience Online
(Publix Bought Customer Services Experience Online, Source: RetailWire)

Bonus Tip: As you can see big companies like Publix are investing heavily in forming an online presence. And the investment has also given returns for the same. The same goes while learning several digital marketing skills including online presence. If you will invest now in learning to upgrade your skill-set then it will surely give you endless advantages in the future in terms of opportunities and career growth. 

  • Taxation Policy: The brand new taxation policy can considerably impact the manner of doing business and might open new opportunities for established gamers inclusive of Publix to boost its profitability.


Threats to Publix

  • Extreme Competition: Strong profitability has increased the variety of players in the enterprise over ultimate years which has positioned downward stress on not only profitability however additionally on normal income.
  • Shortage of Skilled Workers: Shortage of skilled groups of workers in certain international markets represents a hazard to the profits for Publix in those markets.
  • Face Court Cases: The business enterprise can face court cases in numerous markets given distinctive legal guidelines and continuous fluctuations regarding product requirements in those markets.
  • Technology Developed By Rivals: New technology developed by the competitor or market disruptor can be a critical hazard to the industry in the medium to long term destiny.
  • Seasonal Alterations: The demand for notably worthwhile products is seasonal and any not likely occasion during the height season may also impact the profitability of the organization in the short to medium term.


This ends our elaborative SWOT analysis of Publix. Let us conclude our learning below.

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To Conclude

To sum up, Publix has a huge mass of incredibly innovative services providing enough options. The Company has the advantage of the brand trust of thousands. It has been updated with technology although not the most advanced but not behind as well; however, Publix should start focusing on creative advertisement to attract more inventors in the U.S. as well as internationally. It must consider international expansion. 

With a huge increase in the service industry. There is a very high competition where marketing plays a crucial role-taking advantage of technology, not merely in this industry in which every other company is focusing on digital marketing to rise ahead of each other.  If you too are interested in learning advanced digital marketing strategies, check out  IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Publix has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Publix, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Publix in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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