Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc.
Swot Analysis of "Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc." written by James Costantini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ins901 Kirana facing as an external strategic factors. Some of the topics covered in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. casestudy better are - – technology disruption, increasing commodity prices, wage bills are increasing, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs, there is backlash against globalization, geopolitical disruptions,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc.
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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ins901 Kirana, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. can be done for the following purposes –
1. Strategic planning using facts provided in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. case study
2. Improving business portfolio management of Ins901 Kirana
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 Ins901 Kirana
Strengths Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ins901 Kirana in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. Harvard Business Review case study are -
Organizational Resilience of Ins901 Kirana
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ins901 Kirana does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Ins901 Kirana in the sector have low bargaining power. Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ins901 Kirana to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Ins901 Kirana 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.
Diverse revenue streams
– Ins901 Kirana is present in almost all the verticals within the industry. This has provided firm in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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.
Highly skilled collaborators
– Ins901 Kirana has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Ins901 Kirana is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to recruit top talent
– Ins901 Kirana is one of the leading recruiters in the industry. Managers in the Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Cross disciplinary teams
– Horizontal connected teams at the Ins901 Kirana 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.
Effective Research and Development (R&D)
– Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Innovation driven organization
– Ins901 Kirana is one of the most innovative firm in sector. Manager in Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
High brand equity
– Ins901 Kirana has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ins901 Kirana to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. are -
High operating costs
– Compare to the competitors, firm in the HBR case study Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 Ins901 Kirana 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Ins901 Kirana is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ins901 Kirana needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ins901 Kirana to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Ins901 Kirana has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Ins901 Kirana 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.
Aligning sales with marketing
– It come across in the case study Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. can leverage the sales team experience to cultivate customer relationships as Ins901 Kirana is planning to shift buying processes online.
Lack of clear differentiation of Ins901 Kirana products
– To increase the profitability and margins on the products, Ins901 Kirana needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Ins901 Kirana has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Ins901 Kirana 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.
Low market penetration in new markets
– Outside its home market of Ins901 Kirana, firm in the HBR case study Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Ins901 Kirana has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ins901 Kirana even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Workers concerns about automation
– As automation is fast increasing in the segment, Ins901 Kirana 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.
Opportunities Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. | 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. are -
Building a culture of innovation
– managers at Ins901 Kirana 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.
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. Ins901 Kirana can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Ins901 Kirana has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Learning at scale
– Online learning technologies has now opened space for Ins901 Kirana 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.
Manufacturing automation
– Ins901 Kirana can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ins901 Kirana 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 Ins901 Kirana to hire the very best people irrespective of their geographical location.
Using analytics as competitive advantage
– Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ins901 Kirana to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Ins901 Kirana 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc., 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, Ins901 Kirana can use these opportunities to build new business models that can help the communities that Ins901 Kirana operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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 Ins901 Kirana in the consumer business. Now Ins901 Kirana can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Ins901 Kirana can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Ins901 Kirana to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ins901 Kirana in the Strategy & Execution industry. The Strategy & Execution 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.
High dependence on third party suppliers
– Ins901 Kirana 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Ins901 Kirana in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ins901 Kirana with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing wage structure of Ins901 Kirana
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Ins901 Kirana.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ins901 Kirana 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc., Ins901 Kirana may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Environmental challenges
– Ins901 Kirana 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. Ins901 Kirana can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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. Ins901 Kirana 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.
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 Ins901 Kirana business can come under increasing regulations regarding data privacy, data security, etc.
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. Ins901 Kirana needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Consumer confidence and its impact on Ins901 Kirana 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.
Weighted SWOT Analysis of Development of Food Retailing in India (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 (B): Consumer's Choice of Food Retailer: Hypermarkets, Supermarkets, Kirana, Markets, etc. 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 Ins901 Kirana needs to make to build a sustainable competitive advantage.
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