Development of Food Retailing in India (C): From Farm to Fork via Supermarkets SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Development of Food Retailing in India (C): From Farm to Fork via Supermarkets
The case series focuses on the diverse, innovative approaches taken by major players, domestic and foreign, to establish and grow chains of hypermarkets and supermarkets in India over the past decade, in the context of shifting FDI policies, changing consumer shopping habits, and an evolving food value chain.
Swot Analysis of "Development of Food Retailing in India (C): From Farm to Fork via Supermarkets" written by James Costantini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Supermarkets Fork facing as an external strategic factors. Some of the topics covered in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets case study are - Strategic Management Strategies, Innovation, Marketing, Supply chain and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Development of Food Retailing in India (C): From Farm to Fork via Supermarkets casestudy better are - – technology disruption, increasing household debt because of falling income levels, banking and financial system is disrupted by Bitcoin and other crypto currencies, competitive advantages are harder to sustain because of technology dispersion, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models, there is increasing trade war between United States & China,
wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Development of Food Retailing in India (C): From Farm to Fork via Supermarkets
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Supermarkets Fork, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Supermarkets Fork 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets can be done for the following purposes –
1. Strategic planning using facts provided in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets case study
2. Improving business portfolio management of Supermarkets Fork
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Supermarkets Fork
Strengths Development of Food Retailing in India (C): From Farm to Fork via Supermarkets | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Supermarkets Fork in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets Harvard Business Review case study are -
Effective Research and Development (R&D)
– Supermarkets Fork 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Supermarkets Fork is present in almost all the verticals within the industry. This has provided firm in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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.
Sustainable margins compare to other players in Strategy & Execution industry
– Development of Food Retailing in India (C): From Farm to Fork via Supermarkets firm has clearly differentiated products in the market place. This has enabled Supermarkets Fork to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Supermarkets Fork to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Supermarkets Fork 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.
Ability to recruit top talent
– Supermarkets Fork is one of the leading recruiters in the industry. Managers in the Development of Food Retailing in India (C): From Farm to Fork via Supermarkets are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Supermarkets Fork
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Supermarkets Fork does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Supermarkets Fork 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
– Supermarkets Fork has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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.
Low bargaining power of suppliers
– Suppliers of Supermarkets Fork in the sector have low bargaining power. Development of Food Retailing in India (C): From Farm to Fork via Supermarkets has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Supermarkets Fork to manage not only supply disruptions but also source products at highly competitive prices.
Successful track record of launching new products
– Supermarkets Fork has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Supermarkets Fork has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Strategy & Execution field
– Supermarkets Fork 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 Supermarkets Fork in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Supermarkets Fork in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Weaknesses Development of Food Retailing in India (C): From Farm to Fork via Supermarkets | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Development of Food Retailing in India (C): From Farm to Fork via Supermarkets are -
High operating costs
– Compare to the competitors, firm in the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Supermarkets Fork 's lucrative customers.
Low market penetration in new markets
– Outside its home market of Supermarkets Fork, firm in the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets, it seems that the employees of Supermarkets Fork don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Lack of clear differentiation of Supermarkets Fork products
– To increase the profitability and margins on the products, Supermarkets Fork needs to provide more differentiated products than what it is currently offering in the marketplace.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Supermarkets Fork is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Development of Food Retailing in India (C): From Farm to Fork via Supermarkets HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Supermarkets Fork has relatively successful track record of launching new products.
Capital Spending Reduction
– Even during the low interest decade, Supermarkets Fork 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.
High cash cycle compare to competitors
Supermarkets Fork has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets, it seems that company is thinking about the frontier risks that can impact Strategy & Execution 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.
Skills based hiring
– The stress on hiring functional specialists at Supermarkets Fork has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets, is just above the industry average. Supermarkets Fork needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Development of Food Retailing in India (C): From Farm to Fork via Supermarkets | 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets are -
Using analytics as competitive advantage
– Supermarkets Fork has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Supermarkets Fork to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Supermarkets Fork can use these opportunities to build new business models that can help the communities that Supermarkets Fork operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Supermarkets Fork can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Supermarkets Fork has opened avenues for new revenue streams for the organization in the industry. This can help Supermarkets Fork to build a more holistic ecosystem as suggested in the Development of Food Retailing in India (C): From Farm to Fork via Supermarkets case study. Supermarkets Fork can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Supermarkets Fork 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 Supermarkets Fork to hire the very best people irrespective of their geographical location.
Buying journey improvements
– Supermarkets Fork can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Development of Food Retailing in India (C): From Farm to Fork via Supermarkets suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Supermarkets Fork can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Supermarkets Fork 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, Development of Food Retailing in India (C): From Farm to Fork via Supermarkets, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Learning at scale
– Online learning technologies has now opened space for Supermarkets Fork 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.
Developing new processes and practices
– Supermarkets Fork can develop new processes and procedures in Strategy & Execution 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.
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 Supermarkets Fork in the consumer business. Now Supermarkets Fork can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Supermarkets Fork to increase its market reach. Supermarkets Fork will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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. Supermarkets Fork can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Development of Food Retailing in India (C): From Farm to Fork via Supermarkets External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets are -
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. Supermarkets Fork needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Supermarkets Fork 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Supermarkets Fork with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology acceleration in Forth Industrial Revolution
– Supermarkets Fork has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Supermarkets Fork needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Supermarkets Fork 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Supermarkets Fork business can come under increasing regulations regarding data privacy, data security, etc.
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.
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 Supermarkets Fork.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Supermarkets Fork can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Supermarkets Fork 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.
Shortening product life cycle
– it is one of the major threat that Supermarkets Fork is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Environmental challenges
– Supermarkets Fork needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Supermarkets Fork can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Supermarkets Fork 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 Strategy & Execution industry regulations.
Weighted SWOT Analysis of Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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 Supermarkets Fork needs to make to build a sustainable competitive advantage.
