1. Safeway
Analyzing the Safeway Business Model In a Time of Economic Change
December 15, 2010
Spencer Jaffe
Debbie Kane
Nadia Pelegouzova
Vinay Prabhu
Natacha Yarbrough

2. Presentation Overview
Introduction
Safeway and Whole Foods Background
Safeway SWOT/TOWS Analysis
Whole Foods SWOT/TOWS Analysis
Safeway Burton Analysis
Whole Foods Burton Analysis
Comparison and Recommendations
Q&A

3. Safeway vs. Whole Foods Background

• Founded in 1978 by John Mackey and Rene Lawson
• 4. Original name was Saferway as a spoof to its largest competitor
• 5. Operates 302 stores throughout US and United Kingdom
• 6. 54,000 employees

Founded in 1915 by M.B. Skaggs
Listed on New York Stock Exchange in 1928
1725 stores and 186,000 employees
Largest grocery chain in US & Canada

7. Safeway SWOT Analysis
Opportunities

8. Whole Foods SWOT Analysis

9. Safeway Burton Analysis Goals and Strategy
Efficiency/Exploitation
A
D
Effectiveness/
Exploration
B
C
Efficiency/Exploitation:
Technology
Centralization
Satellite
Effectiveness/Exploration:

• Private Label Products
• 10. Services
• 11. Subsidiaries