Shiny Provision Store: Retailing Challenges in the Indian Context SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Shiny Provision Store: Retailing Challenges in the Indian Context
India has millions of kirana (small stores) but modern retail outlets are emerging. The case illustrates the challenges confronting the shop owner of Shiny Provision Store, a kirana in the suburbs of Bangalore, India. A customer, who is a market researcher, decides to explore how a small retailer in the food and groceries business can survive in an environment that is getting increasingly sophisticated in terms of professional techniques being applied to modern retailing. Data on retail images of small shops and modern outlets as well as lifestyle information on consumers is presented.
Swot Analysis of "Shiny Provision Store: Retailing Challenges in the Indian Context" written by S. Ramesh Kumar, Radhika Vishvas includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Shiny Kirana facing as an external strategic factors. Some of the topics covered in Shiny Provision Store: Retailing Challenges in the Indian Context case study are - Strategic Management Strategies, Entrepreneurship, International business, Marketing and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Shiny Provision Store: Retailing Challenges in the Indian Context casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing energy prices, increasing commodity prices, geopolitical disruptions, increasing household debt because of falling income levels, wage bills are increasing,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Shiny Provision Store: Retailing Challenges in the Indian Context
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Shiny Provision Store: Retailing Challenges in the Indian Context case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Shiny Kirana, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Shiny 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 Shiny Provision Store: Retailing Challenges in the Indian Context can be done for the following purposes –
1. Strategic planning using facts provided in Shiny Provision Store: Retailing Challenges in the Indian Context case study
2. Improving business portfolio management of Shiny Kirana
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Shiny Kirana
Strengths Shiny Provision Store: Retailing Challenges in the Indian Context | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Shiny Kirana in Shiny Provision Store: Retailing Challenges in the Indian Context Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Shiny Kirana in the sector have low bargaining power. Shiny Provision Store: Retailing Challenges in the Indian Context has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Shiny Kirana to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Shiny 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.
High switching costs
– The high switching costs that Shiny 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.
Training and development
– Shiny Kirana has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Shiny Provision Store: Retailing Challenges in the Indian Context 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.
Innovation driven organization
– Shiny Kirana is one of the most innovative firm in sector. Manager in Shiny Provision Store: Retailing Challenges in the Indian Context Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Shiny Kirana in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Shiny Kirana
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Shiny Kirana does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to lead change in Innovation & Entrepreneurship field
– Shiny Kirana 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 Shiny Kirana in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– Shiny Provision Store: Retailing Challenges in the Indian Context firm has clearly differentiated products in the market place. This has enabled Shiny Kirana to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Shiny Kirana to invest into research and development (R&D) and innovation.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Shiny Kirana digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Shiny Kirana 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.
Ability to recruit top talent
– Shiny Kirana is one of the leading recruiters in the industry. Managers in the Shiny Provision Store: Retailing Challenges in the Indian Context are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Shiny Kirana has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Shiny Kirana 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.
Weaknesses Shiny Provision Store: Retailing Challenges in the Indian Context | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Shiny Provision Store: Retailing Challenges in the Indian Context are -
Products dominated business model
– Even though Shiny Kirana 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 - Shiny Provision Store: Retailing Challenges in the Indian Context should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Shiny Provision Store: Retailing Challenges in the Indian Context, is just above the industry average. Shiny Kirana 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Shiny 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.
Interest costs
– Compare to the competition, Shiny 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Shiny Kirana is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Shiny Provision Store: Retailing Challenges in the Indian Context can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on 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 Shiny Kirana supply chain. Even after few cautionary changes mentioned in the HBR case study - Shiny Provision Store: Retailing Challenges in the Indian Context, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Shiny Kirana vulnerable to further global disruptions in South East Asia.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Shiny Provision Store: Retailing Challenges in the Indian Context, it seems that the employees of Shiny Kirana 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Kirana 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Shiny Kirana is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Shiny Kirana needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Shiny Kirana to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Shiny Provision Store: Retailing Challenges in the Indian Context HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Shiny Kirana has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Shiny Provision Store: Retailing Challenges in the Indian Context, it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities Shiny Provision Store: Retailing Challenges in the Indian Context | 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 Shiny Provision Store: Retailing Challenges in the Indian Context are -
Creating value in data economy
– The success of analytics program of Shiny Kirana has opened avenues for new revenue streams for the organization in the industry. This can help Shiny Kirana to build a more holistic ecosystem as suggested in the Shiny Provision Store: Retailing Challenges in the Indian Context case study. Shiny Kirana 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 Shiny Kirana to increase its market reach. Shiny Kirana 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Shiny Kirana can use these opportunities to build new business models that can help the communities that Shiny Kirana operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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. Shiny Kirana can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Shiny Kirana can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Shiny Provision Store: Retailing Challenges in the Indian Context suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Shiny Kirana can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Leveraging digital technologies
– Shiny Kirana 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.
Building a culture of innovation
– managers at Shiny 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 Innovation & Entrepreneurship segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Shiny Kirana can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Shiny 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 Shiny Provision Store: Retailing Challenges in the Indian Context - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Shiny Kirana to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Shiny Kirana 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. Shiny Kirana 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.
Manufacturing automation
– Shiny Kirana can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Shiny Kirana in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Threats Shiny Provision Store: Retailing Challenges in the Indian Context External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Shiny Provision Store: Retailing Challenges in the Indian Context are -
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. Shiny 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Shiny Provision Store: Retailing Challenges in the Indian Context, Shiny 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 Innovation & Entrepreneurship .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Shiny Kirana with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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.
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 Shiny Kirana.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Shiny Kirana in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
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 Shiny Kirana business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Shiny Kirana can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Shiny Kirana is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Shiny Kirana has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Shiny Kirana needs to keep up with the evolution of technology in the Innovation & Entrepreneurship 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 Shiny 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.
Regulatory challenges
– Shiny Kirana 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 Innovation & Entrepreneurship industry regulations.
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. Shiny Kirana needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Provision Store: Retailing Challenges in the Indian Context 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 Shiny Kirana needs to make to build a sustainable competitive advantage.
