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EXTERNAL FORCES

STRENGTHS

WEAKNESS

OPPORTUNITY

THREAT

TREND

Legal and Regulatory

Legal and Regulatory Most of the trade policies in the grocery division favor its markets. Taxes on the products are low which helps in the process of maximizing profits

Road systems which require inspection of goods create delays in the delivery process. This contributes to the rise in customer complaints.

Trade policies in support of globalization have helped in creating new international markets. These markets open an opportunity for grocery business to expand internationally.

The GMO groceries are becoming popular and are creating a very stiff competition in the domestic market.

The GMO groceries like the tomatoes are a new trend. Grocery firms are still analyzing on whether to embrace them or continue relying on the naturally grown products.

Global

The grocery division are capable of exercising control over its market due to diverseness. The division specializes in various foods such as vegetables, meat, and bakeries.

Competition has stiffened due to global as many large international companies are expanding geographically.

Due to global, small enterprises are slowly being eliminated from the market. This creates an opportunity for the big groceries to secure their customers and increase these clients to their list.

Major trends include the product curation by consumers, shopping done by the client across multiple channels and the private labeling of groceries is gaining popularity.

Economic

Economic Since economics deals with how the market works, grocery divisions can come up with strategies that can help them improve on their customer relation which will be vital in improving sales.

Economics has made the grocery sector to be very competitive forcing supermarkets to be oligopolistic. This forces the grocery business which wants to stay in the competition to come up with new strategies so that they can improve on their operation strategies.

The groceries retail stores and supermarket have the ability to fine tune their expansion plans due to economics. Competition has resulted in the grocery sector to becoming innovative. Most of the product are packed in a way that they can now be internationally moved without them getting spoilt.

The global economy has affected the retail strategies due to the introduction of discounted items which were never discounted. Economy recessions have slowed down the process plans which has been helpful in maintaining the quality of grocery products. Segmentation and premium extensions are some of the examples which slow down quality improvement methods

The trend in economics is how the number of supermarkets and grocery stores are growing at a very fast rate especially in the developed countries like the UK and the U.S.A.

Technological

Due to technology, online markets, and sales have become possible especially in the developed worlds. Technology has made it possible for perishable goods to be packed in a manner that they will not get spoilt even without refrigeration. Packing groceries like beans, beef, and tomatoes in cans are some of the ways of packing perishable goods. The process helps these products to stay for long without perishing.

MO foods are becoming popular, yet science reveals that they are not healthy as naturally grown groceries. Technology in groceries especially the production of MGO foods threatens the health of people.

Technology helps many supermarkets to improve their customers’ shopping experience. It has eased the location of products by customers, an introduction of the self-serve scanning of products by customers, and the supermarket mobile apps which help customers to do online shopping which tries to encourage home delivery of grocery products.

Technology has changed the lifestyle of many individuals which has in turn affected how customers shop and eat. This change that is being exhibited by consumers’ create a threat to supermarkets and grocery retail shops which cannot keep up with technology.

Technology has changed the lifestyle of many individuals which has, in turn, affected how customers shop and eat. This change that is being exhibited by consumers’ create a threat to supermarkets and grocery retail shops which cannot keep up with technology. The primary trend that concerns the grocery sector is the request for fresh products in the grocery outlets. Although this is challenging, consumers were hoping that the technology can offer a solution to the problem. Product curation which focuses on customer specification is another trend that consumers are hoping that these outlets would embrace.

Innovation

Distinctive offerings concerned with change help many groceries avoid competition. Innovation further offers a clear vision and helps in evolving these offerings due to change in the taste of customers which may be brought about by technology

Grocery outlets are looking for ways in which they can permanently shift to value. Merchandise innovation is another major trend that is circulating the grocery division. GMO has been one of these innovations but has been highly criticized.

The introduction of online markets helps grocery outlets expand their markets. The introduction of new services that are able to help these stores to meet customer need can be helpful in diversifying their clients’ base.

High burden of debt, lack of modern technology in grocery outlets, and a high turnover of staffs which decreases the eligibility of supermarkets to compete are some of the major threats associated with innovation.

A country with a bad economy negatively affects grocery outlets since it discourages shoppers. Changes in the government rules can also adversely affect grocery outlets.

Social

Groceries retails that request for feedback from their customers improves on their comments. They can, therefore, work on their weaknesses to improve on productivity.

Customers can sometimes give negative comments which when taken seriously by these outlets can harm them.

Through socialization, these outlets can know which products that customers value most and increase the market base for them to improve their sales.

Feedback from customers can ruin the brand of the company and its employees. In the process, the outlet can lose some of its valuable customers.

Online feedbacks where a customer does not need to waste time in offering feedback during shopping hours is the trend that circles grocery outlets.

Environmental

A supermarket which is set in a good environment will have a humble time to come up with strategies that can help it grow and expand.

A grocery outlet on an environment that has many shopping restrictions and regulations discourage customers. In addition, an environment that experiences violence and theft most of the time will lead an outlet to experience a debt burden.

A country that encourages technology change, embracement, and socialization creates good relation with the people and the government.

An environment whose stability is not constant acts as a threat to these grocery outlets.

The capability of grocery retails to adapt to any kind of environment bad offer its services well is a trend which is circulating the grocery market.

Competitive Analysis

The analysis gives an opportunity for grocery outlets to identify their weaknesses so that they can work to improve themselves (Fleisher & Bensoussan, 2015).

An inaccurate competitive analysis can give the wrong interpretation of the supermarket’s current position in the market. Measures taken regarding this report can affect the grocery outlet in a negative way.

An accurate, competitive analysis helps a company to come up with strategies that can be helpful in spotting international opportunities for expansion.

A competitive analysis can discourage a grocery outlet whose performance might have been affected by uncontrollable market forces like hiking of production cost which can lead to raising of supply cost.

The increase in outsourcing is a major trend that revolves around the grocery division. Encouragement of outsourcing non-core functions is a significant trend in outsourcing.

INTERNAL FORCES

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

TREND

Strategy

Good strategies help a grocery outlet to improve in it sales and services.

A weak strategy can lead to a supermarket in making loses in its sales and poor performance in its service.

A strategy give a vivid picture on how sales and services should be in the present and future.

Application of a strategy which has never been tasted by any other grocery outlet can prove to be costly and risky.

The common trend in strategy is the discussion on why some strategies fail on some outlets while succeeds in others

Structures

Service offered in a retail shop should encourage shoppers to come and shop more often. Arrangement of products should be easy to spot and identify.

A poor retail structure causes confusion during shopping. Poor services discourage shoppers who are women in coming back to the grocery store to shop again,

A good structure helps to increase the number of customers. Customers who find it easy to shop in a certain retail will recommend their friends to that retail.

Poor services and expensive products is a major threat since it discourages customers from shopping in that outlet.

Structures in the grocery outlets which can fully support the sale and service department is a major trend.

Processes and System

Processes and systems which are in line with the services offered by the outlet help to improve sales

A complicated system and process especially the online platform of the outlet can easily repel customers leading to low sales.

A good process and system helps to save time which enables more customers to be served. This is viewed as good services from the outlet by clients.

A poor process and systems for serving customer will lead to a reduction in sales. This can lead to the closure of the outlet.

Easy to maintain systems which are in line with the services of a grocery retail shop is discussion that revolves around the stakeholder, management, and consumers.

Resources

Through resources, grocery retails can improve on their strategies, systems, services which can help improve on their sales.

When a supermarket has resources it tends to overlook it shoppers which can be their downfall in the future.

Resources help outlets to expand geographically, improve on their services since the employees are paid well, and work on their marketing strategies to maximize profits.

Lack of resources is a threat to grocery outlets since they can be overburden with debts.

The management and raising of resources from the sales made from the outlets is the trend that is circulating around.

Goals

The goals of a grocery should be reflected from the way it carries out its services since this would be crucial in hitting the targeted sales.

Focusing on organizational goals by the retails can lead to customer dissatisfaction.

When the outlets get to achieve the goals it targeted, it opens up opportunities for more accomplishment.

Achievement of goal by a grocery outlet can make them be overconfidence which can lead to setting up of unrealistic goals.

The major trend in the grocery outlets is how these outlets can identify and set realistic goals using specific strategies.

Strategic Capabilities

Strategic capabilities help in customer retention, efficient use of resources, and effective company expansion.

Strategic capabilities sometimes give a wrong perception to an organization.

A company can be able to foresee potential failures and disasters giving them an opportunity to maintain and come up with new policies to help it avoid future disasters.

Strategic capabilities can be viewed as experimental and can prove to be costly. These can make an outlet experience loses which can be hard to recover.

The marketing strategies used by one outlet should work in another outlet with the same products. However, I the grocery division, this seems not to be the case.

Culture

A culture puts the employees in order. It defines how they should behave and conduct their services in the sales department.

Culture can be restrictive when it comes to creation and imagination. The sales and service model needs to creativity and imagination so that

Culture helps in the specialization of products that customers in a given particular area prefer than other products.

Culture creates biasness of products which can lead to low profit making.

Reducing of biasness in many geographical area as a way of improving on sales is proving to be challenging especially in places where they do not consume certain products.

Technologies

It helps in the maximizing of investment from the returns that the grocery outlets.

Adapting to the new technology in the sales and service department can prove to be very expensive for the grocery outlets.

Technology has contributed to great lengths in the rise of various platforms in which are able to attract and engage various customers to attract them into the sales funnel. This is an online service platform.

Grocery outlets with an inability to adapt to new operational changes caused by technology will likely drop on their sales since they would be lacking behind since customers change with technology.

Technologies is trying to change the sales and service operations of the grocery outlets from face to face to the use of online platforms.

Innovations

It assists the sales and service departments to come up with tools and methods that can reshape the sale and service structures to maximize on sales.

Innovative strategies require the use of resources from which the sales department can end up making a loss from using too much than what it brings back (UNESCO , 2015).

Through innovative strategies, companies can foresee future opportunities which the sales and service departments can take advantage to achieve organizational goals.

The use of resources is very costly and grocery retails may end up borrowing funds at the expense of innovation which can prove to be very costly in the future.

The sales and department are discussing on whether it is possible to balance the resources used in innovation with the profit that the sales department will make from its sales.

Intellectual Property

It helps in bringing new products which will boost the sales department in improving on its profit.

Creativity is sometimes a trial and error which when the product fails to meet the requirements of shoppers, the sales department end up making loses.

The invention of new intellectual properties broadens the market for shoppers which will constitute in the sales department making more profit (Torremans, 2014).

Waste of time and resources to the sales department is a direct result from a product which fails to perform in the market.

The grocery retails are analyzing on whether it is possible to minimize the capital spent in securing intellectual properties with the concerned bodies.

Leadership

Good leadership strategies will help an organization get focused on the goals to be achieved.

Poor leadership will lead to inefficiency in the service and sales department which can constitute to loss-making.

Leadership plays an important role in regard to the current position that a grocery retail holds in its market. A good position in the market helps in attracting more customers.

Leadership is important but too much focus on it can blind the management to concerns linked to employees as it is concerned more on the market and customers.

The trend in leadership is whether it is possible to apply new strategies which will focus on improving leadership strategies that will work both for the service and sales department.

STRENGTH

WEAKNESS

OPPORTUNITY

THREAT

TREND

SUPPLY CHAIN ANALYSIS

A good analysis can help the sector to address both long and short term goals through improving on its purchasing power.

A poor analysis will lead to poor capitalization of the volumes of purchase which will lead to the dropping of costs.

A good supply analysis will help a firm a company cut down its cost by coming up with new initiatives.

A good analysis will help the grocery outlets focus on vendors’ decisions which can pose problems during the supply of products.

It is being analyzed on whether it is possible to lower costs of supply while at the same time improving on the approaches to ensure products are available in time.