Strategic analysis

External Environment
Demographic Environment Population is increasing rapidly Median age is 26.2 years.(est.) Majority of the population is under the age of 35-40 years. Social Environment Literacy rate- 65.38% in 2001 to 75.6% in 2011 People are becoming more aware about the western culture. Both husband and wife work- rise in the standard of living. Fall in savings and rise in private final consumption-movies, eating out, books and music. Technical Environment IT providing support- decision making, reduction in process costing. SCM and CRM help inventory tracking and warehousing. Political & Legal Environment Open gates for FDI-bringing competition Closure of Indian retailer business and losses of jobs Resistance from traditional retailers, leftist party and socialists. Industry Environment Tremendous growth- 860(215) US billion dollar est. in 2018 Dominated by traditional retailers,low operating cost, credit facility, home delivery etc. Unorganized sector s share -93%.

External Environment
Porters Five Forces

Entry Barrier- Moderate Suppliers bargaining power- low Buyers Bargaining Power- High Threat from Substitutes- High Rivalry among Competitors- Low

Internal Environment
Strategies
MarketingUmeed se dugna, purana do, naya lo, isse sasta aur kahin nahin Organization Delegation of powers, performance based T&D- Prarambh, and Guru-School, prerna- suggestions Bigger share of customers wallet Dominate retail space - 20 million sq. ft

Core Competencies

Provides best prices Multiple brands, multiple formats Strong customers base-2,50,000 green card holders Strong distribution and logistic network-21 dist. Centres,

Internal Environment
Competitive Advantage Early mover advantage- Non-Substitutable Strong customer base- Valuable Strong and efficient supply chain- Non Imitable Multiple formats- Rare Deep understanding of Indian consumers needs- Rare

SWOT ANALYSIS
Strength
Reputation- value for money

Opportunities

Strategic HRM Maximum no. of formatshuge market share Vast range of lifestyle and value products range

Highly untapped market. New formats insurance, property, business needs etc Rural retailing Advantages from demographic changes.

Weakness

Threats

No bargaining at the counter Cant match the unorganized retailers

Economic slowdown Unorganized retailers, political parties and socialists Price wars- cut in profits FDI

Recommendation
Focus on retaining the customers Tap the traditional handicrafts and ethnic wear market Diversify in catering the needs of rural India. Offer unique segments.

Prepared by: BHARTI VERMA