Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players
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 (A): Entry and Growth of Domestic and Foreign Players" written by James Costantini includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Domestic Foreign facing as an external strategic factors. Some of the topics covered in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players casestudy better are - – wage bills are increasing, challanges to central banks by blockchain based private currencies, technology disruption, increasing commodity prices, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation,
there is increasing trade war between United States & China, geopolitical disruptions, etc
Introduction to SWOT Analysis of Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players
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 (A): Entry and Growth of Domestic and Foreign Players case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Domestic Foreign, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Domestic Foreign 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 (A): Entry and Growth of Domestic and Foreign Players can be done for the following purposes –
1. Strategic planning using facts provided in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players case study
2. Improving business portfolio management of Domestic Foreign
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 Domestic Foreign
Strengths Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Domestic Foreign in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players Harvard Business Review case study are -
Diverse revenue streams
– Domestic Foreign is present in almost all the verticals within the industry. This has provided firm in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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.
Innovation driven organization
– Domestic Foreign is one of the most innovative firm in sector. Manager in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Strategy & Execution industry
– Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players firm has clearly differentiated products in the market place. This has enabled Domestic Foreign to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Domestic Foreign to invest into research and development (R&D) and innovation.
Training and development
– Domestic Foreign 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 (A): Entry and Growth of Domestic and Foreign Players 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.
Effective Research and Development (R&D)
– Domestic Foreign 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 (A): Entry and Growth of Domestic and Foreign Players - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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.
Low bargaining power of suppliers
– Suppliers of Domestic Foreign in the sector have low bargaining power. Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Domestic Foreign to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Domestic Foreign 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 lead change in Strategy & Execution field
– Domestic Foreign 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 Domestic Foreign in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Domestic Foreign 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.
Learning organization
- Domestic Foreign 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 Domestic Foreign is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Domestic Foreign 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.
Weaknesses Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players are -
High bargaining power of channel partners
– Because of the regulatory requirements, James Costantini suggests that, Domestic Foreign is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High operating costs
– Compare to the competitors, firm in the HBR case study Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 Domestic Foreign 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players can leverage the sales team experience to cultivate customer relationships as Domestic Foreign is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players, it seems that the employees of Domestic Foreign 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.
Interest costs
– Compare to the competition, Domestic Foreign 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.
Slow decision making process
– As mentioned earlier in the report, Domestic Foreign 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. Domestic Foreign 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.
Low market penetration in new markets
– Outside its home market of Domestic Foreign, firm in the HBR case study Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to strategic competitive environment developments
– As Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players HBR case study mentions - Domestic Foreign 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.
Need for greater diversity
– Domestic Foreign 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Domestic Foreign 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.
Lack of clear differentiation of Domestic Foreign products
– To increase the profitability and margins on the products, Domestic Foreign needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players | 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 (A): Entry and Growth of Domestic and Foreign Players are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Domestic Foreign 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 Domestic Foreign to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Domestic Foreign 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.
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 Domestic Foreign in the consumer business. Now Domestic Foreign can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Domestic Foreign 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.
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. Domestic Foreign can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Domestic Foreign 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Domestic Foreign can use these opportunities to build new business models that can help the communities that Domestic Foreign operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Domestic Foreign is facing challenges because of the dominance of functional experts in the organization. Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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.
Building a culture of innovation
– managers at Domestic Foreign 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Domestic Foreign in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Domestic Foreign 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 (A): Entry and Growth of Domestic and Foreign Players - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Domestic Foreign to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Domestic Foreign 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Domestic Foreign 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. Domestic Foreign 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.
Threats Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Domestic Foreign 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.
Technology acceleration in Forth Industrial Revolution
– Domestic Foreign has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Domestic Foreign 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.
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 (A): Entry and Growth of Domestic and Foreign Players, Domestic Foreign 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 .
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 Domestic Foreign in the Strategy & Execution sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Domestic Foreign 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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Consumer confidence and its impact on Domestic Foreign 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Domestic Foreign with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Domestic Foreign 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.
Regulatory challenges
– Domestic Foreign 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.
Increasing wage structure of Domestic Foreign
– 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 Domestic Foreign.
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. Domestic Foreign 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. Domestic Foreign needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players 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 (A): Entry and Growth of Domestic and Foreign Players 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 Domestic Foreign needs to make to build a sustainable competitive advantage.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Development of Food Retailing in India (A): Entry and Growth of Domestic and Foreign Players