SWOT Analysis- Indian Retail Industry-Pantaloon Retail (India) Ltd. Part IX (iv)

Threats

Implementation of the growth plan can be the biggest risk: The organization intends to become around 10 times bigger than its current size in terms of floor area. However, in this expansion planning there are a number of factors which affect the organization’s plan. For most of the companies, the delivery to the shopping stores is delayed from their schedules. Due to the tough financial situation, the clearances for the new stores got bunched up. This can proved to be a bottleneck for the organization.

Shopping Culture: Although the situation is improving quickly, the shopping culture in India is still in the development phase. Even now a good number of people in India go to malls just to hang out with their families and friends and thus is largely limited to window shopping. However, the shopping culture in India is changing its characteristics. This can hinder the organization from making more sales in the shopping malls. In near future, India will see more people shopping at malls and shopping stores.

Unorganized retailers: If all the unorganized retailers come together, they can compete with a large supermarket with negligible overheads, greater flexibility in the products, prices of the merchandises, display and turnover. If this happens, that can be a threat to the retail organizations like Pantaloon.

Rising resource cost: Rising resource cost can be a threat for the organization. The employee cost and the property values are quickly moving in the upward direction. This, in turn, would increase the pressure on the retail industry.

SWOT analysis requires a systematic approach to identify and analyze the factors which are external to the organization and aligning them with the organization’s capabilities. Merely performing the SWOT analysis can be no use to define the best strategy; implementation is of utmost importance. There are some requirements of the implementation. First of all the organization must be ready for change. Managers must have a respectful position among the employees. Moreover, the employees must personally feel the need for change and become motivated towards the same.

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