Retail Industry SWOT Analysis 2022 ❤️

Retail Industry SWOT Analysis: Similar to other companies, frequently employ SWOT (strengths as well as opportunities, weaknesses, and threats) analysis to analyze their operations.

A SWOT analysis for retail businesses is an exhaustive analysis of the strengths and weaknesses of the retailer as well as threats and opportunities compared to major competitors in the market.

The strengths and the weaknesses of a retailer are viewed as internal factors over which retailers have greater control. 

Threats and opportunities are external variables and can be negative or positive situations that retailers are constantly confronted with.

 

Quick Stats on Future Retail
Founder Kishore Biyani
Year Founded 2013
Origin Mumbai, Maharashtra
No. of Employees 50,000+
Company Type Private
Market Cap Rs 2,657.19 Crore (2020)
Annual Revenue Rs 6,437.40 Crore (2021)
Net Income/ Profit Rs 164.56 Crore (2020)

About Retailing

Significant developments and concepts are influencing the retail industry. It has experienced rapid growth in the past few years. 

Technical performance is essential to the retail expansion as well as software. In essence, retail is the sale to customers of services or products from the company. 

Retailing is a trade that handles small amounts of commodities, whereas wholesalers handle large purchases of the commodities. 

Retailing is an essential business that allows customers to purchase items and other information from a variety of types of retail stores.

SWOT Analysis Of Retailing 

The SWOT analysis highlights strengths and weaknesses, as well as opportunities and threats. 

Understanding the fundamentals of retail in particular by SWOT analysis gives an understanding of how small or huge retail businesses can be managed. 

The research of SWOT aids in assessing an organization’s strengths and weaknesses. The key element is the ability of retailers to effectively manage strengths and weaknesses, while threats and opportunities are separate factors that can have good or negative effects on entrepreneurs.

Strengths of Future Retail

❤️ Deals across a variety of segments: Future Retail focuses on offering a complete shopping experience hub. It offers a variety of stores, including supermarkets, hypermarkets, and convenience stores, as well as fashion stores. Future Retail provides customers with the largest selection of products and services that are sold under different brands of retail.

❤️ Pricing is the USP Future Retail’s price policy assisted its customers to gain customers. This has significantly contributed to growing its market share compared to its rivals. The pricing for almost all its products is lower than the typical MRP

❤️ Easement of Payment Future Retail has its E-Wallet known as Future Pay which functions like an online wallet that allows customers to shop in Future Group stores. There is also a loyalty program for customers through which customers earn and redeem points at any of the Future Group stores.

❤️ Bonus Tips: Digitalisation has benefited customers by offering cashless, effortless shopping. If a particular method has improved customer satisfaction, that is thought of as first by the majority of other companies too. Why wouldn’t you think that learning essential skills beneficial to you? If yes you’ll find numerous short-term courses within IIDE that can help you discover more about digital marketing and how you can make use of its potential to grow.

❤️ The National Presence Future Retail has its presence all over India and makes it the preferred retailer among customers. It is present in more than 400 Indian cities.

❤️ Distribution Channels Future Retail has an established and steady distribution system that guarantees that the products of its partners are available at all times and allow it to operate in numerous areas of India.

❤️ Financial Situation: This year, Future Retail had a Rs 6,437.40 annual profit and was profitable for a number of years which has allowed it to invest in the future of its operations.

❤️ Workforce Development: Future Retail makes substantial investments in employee training and development, leading to an educated and motivated workforce.

Weakness of Future Retail

❤️ Reliant on One Nation: Future Retail is heavily dependent upon India and is vulnerable to foreign competitors.

❤️ Employee Turnover Despite spending a significant amount of money on employee training and development There has been an increase in employee turnover when in comparison to similar organizations.

❤️ Development and Development: Future Retail has not been wisely spending money on development and development, leading to shortages in forecasting demand and potential opportunities being left unexplored.

❤️ Rented AssetsFuture Retail stores such as Big Bazaar, Food Bazaar & FBB operate mostly via the leasing of stores in malls which result in higher prices with the vast majority of the sales being used to pay rent.

❤️ Organizational Structure Future Retail has an organizational structure that puts the majority of the decision-making process in the upper levels and limits the ability to innovate at lower levels.

Opportunities for Future Retail

Opportunities or opportunities for good things to occur are known as opportunities. They are the result of events that take place in the outside world of the company.

❤️ Developing Economy: The entire economy is accessible, as is Future Retail. Future Retail has a rising possibility of gaining access to rapidly growing economies in the developing world.

❤️ The Identity Benefit: It has the potential to build on its brand’s name and diversify its products.

❤️ The First-Mover Benefit The customers are becoming aware of trends in the market and, through analyzing these trends, it’s possible to gain an advantage in the market.

❤️ Skilled Workforce With all the developments in the world of education with regard to specialized programs, Future Retail now has the potential to recruit skilled employees. In the process, the cost of hiring is decreasing.

❤️ Development Potential The stores of the future aim to be the most valuable retail stores in India for their customers. They could use this as an opportunity to increase their presence within the market. This could include expanding globally and tie-ups with international brands.

Threats To Future Retail

Anything that could hurt your business from outside can be considered to be a risk. It is essential for companies to be aware of the dangers.

❤️ Trends Increasing: Customers are becoming more aware of trends and brands they prefer which is putting pressure on businesses to change their strategies frequently.

❤️ Skilled Workforce All over the world In the expansion of the business into national markets it is a possibility of missing qualified workers.

❤️ Competition: For organizations working on similar product lines there is always a risk of competition which is why Future Retail has been facing enormous competition from its competitors.

❤️ New entrants: There is a substantial chance that market share will be lost if there aren’t any limitations on new businesses that enter the market. Future Retail must devise new ways to maintain its place within the market.

❤️ Corporate Environment What is happening in the corporate environment is ever-changing. If a business does not effectively analyze the environment the risks of failure are extremely high.

❤️ Government policies: There is an ongoing change in government policies across various nations. Furthermore, political turmoil in the country can hinder businesses, which can result in reduced performance and more expensive costs.

This concludes our comprehensive SWOT assessment of Future Retail. Let us conclude our learnings below.

Limitations of SWOT Analysis for Retail Food Group Limited

While it is true that the SWOT analysis is used widely to plan strategic strategies, however, it does have its fair share of drawbacks.

  • Certain aspects or capabilities of an organization could be both strengths and weak points at the same. This is among the main drawbacks of SWOT analyses. For instance, changing environmental regulations can be the source of a problem for companies, but as well as an opportunity in the sense that it allows the company to compete in a position to compete with its competitors or even gain an advantage over competitors when it is could develop the product more quickly than its competitors.
  • SWOT is not able to show you how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be considered a solution in and of itself.
  • The matrix is merely an idea to begin discussions on how the proposed strategies might be implemented. It offered an evaluation window, but it did not provide a plan of implementation that was based on the strategic competitiveness of Retail Food Group Limited
  • The SWOT model is a static analysis and analysis of the existing conditions and a small number of potential modifications. When circumstances, capabilities threats, strategies, and circumstances alter, the dynamic of the competitive landscape will not be apparent in one single matrix.
  • SWOT analysis can make a firm overemphasize one external or internal element in formulating strategies. There are interrelations among the most important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of Retail Food Group Limited

Given the above-identified shortcomings of the SWOT analysis/ matrix, the corporate management determined to give weightage to every weakness and strength of the company. 

Companies also evaluate the probability of happenings in the near future and the impact they can be on the performance of the company.

This technique is known as a weighted SWOT analysis. It’s better than basic SWOT analysis since using weighted SWOT analysis Retail Food Group Limited managers are able to focus on the most important aspects and eliminate the less important ones. 

This also helps solve the problem of a long list which is when organizations make lengthy lists but do not address any of the elements that are considered to be important.

Good SWOT Analysis Examples

Make sure you take into consideration each aspect that is part of your SWOT analysis after it has been completed. 

This means putting together solid plans of action with each one, making sure they’re in line with the existing marketing strategies. 

It is crucial to ensure that everything is put together to accomplish performance goals which ultimately will rely on the strength of the social media network to draw customers to an event at the stores.

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