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Retail Strategy at Spencer's SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Retail Strategy at Spencer's


Spencer's is major retail firm in India that operates in hypermarket and supermarket space. True to the formats, food and grocery business is the strength of Spencer's. This case focuses on two strategic issues typical of retail business in most emerging markets: should the company follow aggressive growth model (that is used by many competing retailers who have more market share than Spencer's) or should it consolidate its current position and focus on profitability instead. The case provides adequate customer information, competitors' strategy vis-a-vis Spencer's strategy to carry out an in depth analysis of retail business environment and generate appropriate strategy. This can be used for discussing retailing as well as marketing strategy.

Authors :: Ashis Mishra, Pulak Ghosh

Topics :: Sales & Marketing

Tags :: Marketing, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Retail Strategy at Spencer's" written by Ashis Mishra, Pulak Ghosh includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Spencer's Vis facing as an external strategic factors. Some of the topics covered in Retail Strategy at Spencer's case study are - Strategic Management Strategies, Marketing and Sales & Marketing.


Some of the macro environment factors that can be used to understand the Retail Strategy at Spencer's casestudy better are - – central banks are concerned over increasing inflation, geopolitical disruptions, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing energy prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc



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Introduction to SWOT Analysis of Retail Strategy at Spencer's


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Retail Strategy at Spencer's case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Spencer's Vis, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Spencer's Vis 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 Retail Strategy at Spencer's can be done for the following purposes –
1. Strategic planning using facts provided in Retail Strategy at Spencer's case study
2. Improving business portfolio management of Spencer's Vis
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Spencer's Vis




Strengths Retail Strategy at Spencer's | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Spencer's Vis in Retail Strategy at Spencer's Harvard Business Review case study are -

Effective Research and Development (R&D)

– Spencer's Vis 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 Retail Strategy at Spencer's - 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

– Spencer's Vis is present in almost all the verticals within the industry. This has provided firm in Retail Strategy at Spencer's case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Superior customer experience

– The customer experience strategy of Spencer's Vis in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Learning organization

- Spencer's Vis 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 Spencer's Vis is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Retail Strategy at Spencer's Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Innovation driven organization

– Spencer's Vis is one of the most innovative firm in sector. Manager in Retail Strategy at Spencer's Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

High switching costs

– The high switching costs that Spencer's Vis 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.

Operational resilience

– The operational resilience strategy in the Retail Strategy at Spencer's 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.

Ability to recruit top talent

– Spencer's Vis is one of the leading recruiters in the industry. Managers in the Retail Strategy at Spencer's are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Sustainable margins compare to other players in Sales & Marketing industry

– Retail Strategy at Spencer's firm has clearly differentiated products in the market place. This has enabled Spencer's Vis to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Spencer's Vis to invest into research and development (R&D) and innovation.

Low bargaining power of suppliers

– Suppliers of Spencer's Vis in the sector have low bargaining power. Retail Strategy at Spencer's has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Spencer's Vis to manage not only supply disruptions but also source products at highly competitive prices.

Digital Transformation in Sales & Marketing segment

- digital transformation varies from industry to industry. For Spencer's Vis digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Spencer's Vis has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Training and development

– Spencer's Vis has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Retail Strategy at Spencer's 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.






Weaknesses Retail Strategy at Spencer's | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Retail Strategy at Spencer's are -

Slow decision making process

– As mentioned earlier in the report, Spencer's Vis 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. Spencer's Vis 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.

Aligning sales with marketing

– It come across in the case study Retail Strategy at Spencer's 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 Retail Strategy at Spencer's can leverage the sales team experience to cultivate customer relationships as Spencer's Vis is planning to shift buying processes online.

Workers concerns about automation

– As automation is fast increasing in the segment, Spencer's Vis 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 Retail Strategy at Spencer's, is just above the industry average. Spencer's Vis 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.

High cash cycle compare to competitors

Spencer's Vis 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.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Retail Strategy at Spencer's, in the dynamic environment Spencer's Vis has struggled to respond to the nimble upstart competition. Spencer's Vis has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Increasing silos among functional specialists

– The organizational structure of Spencer's Vis is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Spencer's Vis needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Spencer's Vis to focus more on services rather than just following the product oriented approach.

Low market penetration in new markets

– Outside its home market of Spencer's Vis, firm in the HBR case study Retail Strategy at Spencer's needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Spencer's Vis supply chain. Even after few cautionary changes mentioned in the HBR case study - Retail Strategy at Spencer's, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Spencer's Vis vulnerable to further global disruptions in South East Asia.

Need for greater diversity

– Spencer's Vis 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.

High bargaining power of channel partners

– Because of the regulatory requirements, Ashis Mishra, Pulak Ghosh suggests that, Spencer's Vis 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.




Opportunities Retail Strategy at Spencer's | 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 Retail Strategy at Spencer's are -

Low interest rates

– Even though inflation is raising its head in most developed economies, Spencer's Vis 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.

Loyalty marketing

– Spencer's Vis 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.

Creating value in data economy

– The success of analytics program of Spencer's Vis has opened avenues for new revenue streams for the organization in the industry. This can help Spencer's Vis to build a more holistic ecosystem as suggested in the Retail Strategy at Spencer's case study. Spencer's Vis can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Better consumer reach

– The expansion of the 5G network will help Spencer's Vis to increase its market reach. Spencer's Vis 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.

Manufacturing automation

– Spencer's Vis can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Spencer's Vis can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Spencer's Vis is facing challenges because of the dominance of functional experts in the organization. Retail Strategy at Spencer's 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 Spencer's Vis 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 Sales & Marketing segment.

Learning at scale

– Online learning technologies has now opened space for Spencer's Vis 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.

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 Spencer's Vis 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.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Spencer's Vis 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 Spencer's Vis to hire the very best people irrespective of their geographical location.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Spencer's Vis in the consumer business. Now Spencer's Vis can target international markets with far fewer capital restrictions requirements than the existing system.

Using analytics as competitive advantage

– Spencer's Vis 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 Retail Strategy at Spencer's - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Spencer's Vis to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.




Threats Retail Strategy at Spencer's External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Retail Strategy at Spencer's 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. Spencer's Vis needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

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 Spencer's Vis in the Sales & Marketing sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Spencer's Vis 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.

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 Spencer's Vis business can come under increasing regulations regarding data privacy, data security, etc.

Technology acceleration in Forth Industrial Revolution

– Spencer's Vis has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Spencer's Vis needs to keep up with the evolution of technology in the Sales & Marketing 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.

Consumer confidence and its impact on Spencer's Vis 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 Spencer's Vis is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Spencer's Vis in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

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.

Increasing wage structure of Spencer's Vis

– 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 Spencer's Vis.

Easy access to finance

– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Spencer's Vis 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, Spencer's Vis 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 Retail Strategy at Spencer's .




Weighted SWOT Analysis of Retail Strategy at Spencer's 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 Retail Strategy at Spencer's 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 Retail Strategy at Spencer's 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 Retail Strategy at Spencer's 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 Retail Strategy at Spencer's 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 Spencer's Vis needs to make to build a sustainable competitive advantage.



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