Development of Food Retailing in India (C): From Farm to Fork via Supermarkets SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
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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, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , talent flight as more people leaving formal jobs,
increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, 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 -
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.
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.
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.
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.
Analytics focus
– Supermarkets Fork is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by James Costantini can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
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.
Learning organization
- Supermarkets Fork 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 Supermarkets Fork is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Supermarkets Fork is one of the most innovative firm in sector. Manager in Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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
– Supermarkets Fork has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Supermarkets Fork to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
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 bargaining power of channel partners
– Because of the regulatory requirements, James Costantini suggests that, Supermarkets Fork 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Supermarkets Fork 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.
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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Development of Food Retailing in India (C): From Farm to Fork via Supermarkets, in the dynamic environment Supermarkets Fork has struggled to respond to the nimble upstart competition. Supermarkets Fork has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Supermarkets Fork 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. Supermarkets Fork 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.
Products dominated business model
– Even though Supermarkets Fork 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 - Development of Food Retailing in India (C): From Farm to Fork via Supermarkets should strive to include more intangible value offerings along with its core products and services.
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.
Slow to strategic competitive environment developments
– As Development of Food Retailing in India (C): From Farm to Fork via Supermarkets HBR case study mentions - Supermarkets Fork 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.
Interest costs
– Compare to the competition, Supermarkets Fork 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.
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 -
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.
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.
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.
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.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Supermarkets Fork 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
– Supermarkets Fork 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.
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. Supermarkets Fork 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. Supermarkets Fork 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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Supermarkets Fork is facing challenges because of the dominance of functional experts in the organization. Development of Food Retailing in India (C): From Farm to Fork via Supermarkets 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.
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.
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 Supermarkets Fork 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Supermarkets Fork 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.
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.
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 -
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.
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.
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 .
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.
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.
Increasing wage structure of Supermarkets Fork
– 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 Supermarkets Fork.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Supermarkets Fork 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
– 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.
High dependence on third party suppliers
– Supermarkets Fork 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.
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.
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.
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.
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.
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.