Published by MBA Skool Team, Last Updated: April 26, 2020
SWOT analysis of Kaufland analyses the brand by its strengths, weaknesses, opportunities & threats. In Kaufland SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Kaufland to benchmark its business & performance as compared to the competitors. Kaufland is one of the leading brands in the lifestyle and retail sector.
The article below lists the Kaufland SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Kaufland SWOT Analysis:
For Kaufland, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of Kaufland looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Kaufland :
1. It is one of the German’s largest hypermarket chain and chain operates 1000 stores in Slovakia, Poland , Bulgaria
2. It offers large variety of products in different SKU with lowest prices
3. Acquisition of smaller stores strengthened its brand presence
4. The company has approximately 75,000 employees
5. Strong financial position and marketing in the countries present
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Kaufland SWOT Analysis:
1. Strong competition means the brand has limited market share
2.It’s stores have limited penetration, so not accessible to everyone
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Kaufland SWOT Analysis:
1.The German government has encouraged hypermarket installation
2.German consumers’ propensity to buy is higher in Europe
3. Expansion into emerging economies is an opportunity
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Kaufland are as mentioned:
1.Hypermarket is highly competitive sector due to many players ,so maintaining low margins is big challenge
2.Grocery prices in Germany are lower than rest of the Europe, so they expect low price whenever they come to shop
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Kaufland:
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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