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Safeway Analysis

Objective: An analysis of the factors driving performance of Safeway (top performing firm)

A. Factors that Drive Profitability (as defined in the Interim Report) and an analysis of how they apply to Safeway and their industry leadership:

1. Location, specifically proximity to strategic markets. Being located close to or within key markets lets firms capitalize on their exposure, allowing them to maximize their control of a region and to enhance their margins. Grocery competition exists locally, since there is only so far that consumers are willing to travel to fulfill their needs, so if a firm can dominate a market with minimal competing operators it will enhance its profitability.

• Safeway operates 1,743 stores (as of the end of 2007) across the Western, Midwestern and mid-Atlantic regions of the US and Western Canada. In addition to its self-titled supermarkets, it also operates a number of independent grocery stores acquired since the late 1990’s. Safeway......


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Approximate Word Count: 1510
Approximate Pages: 7 (250 words per double-spaced page)

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