Case Study Description of Shoppers' Stop Group (SSG)
As B.S. Nagesh thumbed through the 2006-2007 Annual Report for Shoppers' Stop Group (SSG), action shots of healthy-looking people dressed in the latest fashions amid the words "Redefining Retail" brought a smile to his face. As managing director of SSG -- a Rs 8.9 billion ($206 million) company in 2007 which included 23 department stores and a new hypermarket -- Nagesh was proud of the way the company had taken retail from its roots in simple transactions to a complete "experience" defined by the luxurious ambiance, food, events and educated staff in SSG's retail outlets throughout India. The company's success led to an initial public offering in May 2005. SSG's parent company, the K. Raheja Corporation, and its affiliated companies held 66% of SSG's Shares.
Swot Analysis of "Shoppers' Stop Group (SSG)" written by Rajiv Lal, Virginia A. Fuller includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ssg Ssg's facing as an external strategic factors. Some of the topics covered in Shoppers' Stop Group (SSG) case study are - Strategic Management Strategies, Growth strategy, Marketing and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Shoppers' Stop Group (SSG) casestudy better are - – increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, technology disruption, there is increasing trade war between United States & China, increasing commodity prices,
geopolitical disruptions, there is backlash against globalization, etc
Introduction to SWOT Analysis of Shoppers' Stop Group (SSG)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Shoppers' Stop Group (SSG) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ssg Ssg's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ssg Ssg's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Shoppers' Stop Group (SSG) can be done for the following purposes –
1. Strategic planning using facts provided in Shoppers' Stop Group (SSG) case study
2. Improving business portfolio management of Ssg Ssg's
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ssg Ssg's
Strengths Shoppers' Stop Group (SSG) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ssg Ssg's in Shoppers' Stop Group (SSG) Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ssg Ssg's in the sector have low bargaining power. Shoppers' Stop Group (SSG) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ssg Ssg's to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Ssg Ssg's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Ssg Ssg's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Shoppers' Stop Group (SSG) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Ssg Ssg's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Ssg Ssg's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Shoppers' Stop Group (SSG) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Sales & Marketing field
– Ssg Ssg's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Ssg Ssg's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Ssg Ssg's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ssg Ssg's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Ssg Ssg's has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Shoppers' Stop Group (SSG) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Ssg Ssg's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Sustainable margins compare to other players in Sales & Marketing industry
– Shoppers' Stop Group (SSG) firm has clearly differentiated products in the market place. This has enabled Ssg Ssg's to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Ssg Ssg's to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Shoppers' Stop Group (SSG) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Diverse revenue streams
– Ssg Ssg's is present in almost all the verticals within the industry. This has provided firm in Shoppers' Stop Group (SSG) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Superior customer experience
– The customer experience strategy of Ssg Ssg's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Shoppers' Stop Group (SSG) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shoppers' Stop Group (SSG) are -
Aligning sales with marketing
– It come across in the case study Shoppers' Stop Group (SSG) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Shoppers' Stop Group (SSG) can leverage the sales team experience to cultivate customer relationships as Ssg Ssg's is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Ssg Ssg's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Shoppers' Stop Group (SSG), in the dynamic environment Ssg Ssg's has struggled to respond to the nimble upstart competition. Ssg Ssg's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Ssg Ssg's products
– To increase the profitability and margins on the products, Ssg Ssg's needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Ssg Ssg's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Shoppers' Stop Group (SSG) should strive to include more intangible value offerings along with its core products and services.
High operating costs
– Compare to the competitors, firm in the HBR case study Shoppers' Stop Group (SSG) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ssg Ssg's 's lucrative customers.
Slow to strategic competitive environment developments
– As Shoppers' Stop Group (SSG) HBR case study mentions - Ssg Ssg's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Shoppers' Stop Group (SSG), it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ssg Ssg's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Shoppers' Stop Group (SSG) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Ssg Ssg's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Ssg Ssg's supply chain. Even after few cautionary changes mentioned in the HBR case study - Shoppers' Stop Group (SSG), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ssg Ssg's vulnerable to further global disruptions in South East Asia.
Opportunities Shoppers' Stop Group (SSG) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Shoppers' Stop Group (SSG) are -
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Ssg Ssg's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Ssg Ssg's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Ssg Ssg's can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Ssg Ssg's can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ssg Ssg's can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ssg Ssg's can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ssg Ssg's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Shoppers' Stop Group (SSG), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ssg Ssg's can use these opportunities to build new business models that can help the communities that Ssg Ssg's operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ssg Ssg's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Ssg Ssg's to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Ssg Ssg's in the consumer business. Now Ssg Ssg's can target international markets with far fewer capital restrictions requirements than the existing system.
Learning at scale
– Online learning technologies has now opened space for Ssg Ssg's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ssg Ssg's is facing challenges because of the dominance of functional experts in the organization. Shoppers' Stop Group (SSG) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Ssg Ssg's has opened avenues for new revenue streams for the organization in the industry. This can help Ssg Ssg's to build a more holistic ecosystem as suggested in the Shoppers' Stop Group (SSG) case study. Ssg Ssg's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Leveraging digital technologies
– Ssg Ssg's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Shoppers' Stop Group (SSG) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Shoppers' Stop Group (SSG) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ssg Ssg's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Shoppers' Stop Group (SSG) .
Consumer confidence and its impact on Ssg Ssg's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Ssg Ssg's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Ssg Ssg's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ssg Ssg's in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Ssg Ssg's.
Regulatory challenges
– Ssg Ssg's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Ssg Ssg's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– Ssg Ssg's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Shoppers' Stop Group (SSG), Ssg Ssg's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Ssg Ssg's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Ssg Ssg's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Shoppers' Stop Group (SSG) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Shoppers' Stop Group (SSG) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Shoppers' Stop Group (SSG) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Shoppers' Stop Group (SSG) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Shoppers' Stop Group (SSG) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Ssg Ssg's needs to make to build a sustainable competitive advantage.