Kroger groceries operates 2,769 grocery retail stores under varied banner names whose formats take the following forms; digital shopping options, supermarkets, price-impact warehouse stores, and supercenters. Kroger controls a considerable market share; it also boasts of a good cash flow. Unlike some of its competitors Kroger employs a three-tier distribution that has over the years proved to be a success. Kroger also strives for increased sales through by offering an array or commodities under one roof. For instance, other than food stores, Kroger operates supermarket fuel centers, pharmacies, food, and drug stores ("Our Business - The Kroger Co.", 2018).
Kroger has grappled with competition from other mega-players such as Amazon and has opted to rework its technology to gain a foothold into the market. The management at Kroger seems to have identified technology as an aspect that can propel the company to greatness. A year earlier, Amazon tipped the scales when it opted to buy whole food markets; the move impacted Kroger’s shares ("Yahoo is now part of Oath", 2018). In a bid to cushion itself the effects of competition in the future, Kroger is exploiting a couple of digital capabilities that would see the company shift towards online grocery shopping.
One of the areas that Kroger hopes to exploit is the use of robots to cut human elements in its operations. Kroger hopes that by using robots, it will diminish competition from other major market players such as Amazon and Walmart. Kroger also seemed to have realized a major milestone when Ocado, online supermarket, entered a strategic deal with the company allowing it to use Ocado’s technology; Ocado managed to scaled back the use of human labor by using robots to fill orders in its warehouse ("Kroger inks Ocado grocery delivery deal to battle Amazon threat", 2018).
In addition to investing heavily in Ocado and acquiring rights to employ its technology, Kroger has also entered into a strategic alliance with Bay area with an aim of strengthening its operations. Kroger has partnered with Bay Area to manufacture unmanned road vehicle that would with deliveries (Hirsch, 2018). Inspired by the need to diminish the use of human labor as well as the need to increase efficiency, Kroger hopes that by employing the use of unmanned vehicles, it will succeed in diminishing delivery cost as well as congestion in its stores. The technology will also address the challenge of parking lots.
Kroger hopes to explore a technological change to gain an edge over its competitors; the level of success that may likely be achieved from such changes could depend, in part, from the reactions and perceptions of the employees and the customers. If the employees feel that the robots are likely to replace them, they may exhibit some level of apprehension that may bleed into their performance and which may ultimately impede operations. Since Kroger exists within a society populated by its employees, adopting technology that threatens to impact employment opportunities may not be welcome. Products created as a result of such technology may be boycotted and the reputational capital of Kroger alongside its sales may be impacted.
Other than strengthening its bottom line, Kroger also seeks to safeguard the social and environmental aspects of the environment upon which it operates. While its strategy is of a noble course, it may be misconstrued to mean interference with the autonomy of individual suppliers. The management at Kroger believes that its customers trust that its products are procured from safe environments where the need for fair and safe working conditions are appreciated and observed.
References
Hirsch, L. (2018). An unmanned car may soon deliver your Kroger groceries. Retrieved from https://www.cnbc.com/2018/06/27/kroger-to-soon-begin-driverless-grocery-delivery.html
Kroger inks Ocado grocery delivery deal to battle Amazon threat. (2018). Retrieved from https://www.reuters.com/article/us-ocado-group-contract-kroger/kroger-inks-ocado-grocery-delivery-deal-to-battle-amazon-threat-
Our Business - The Kroger Co. (2018). Retrieved from https://www.thekrogerco.com/about-kroger/our-business/
Yahoo is now part of Oath. (2018). Retrieved from https://finance.yahoo.com/news/amazon-bought-whole-foods-year-ago-heres-changed-191428325.html