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PEARL ACADEMY OF FASHION (CHENNAI)

SWOT Analysis of Wal-mart Vs Star Bazaar

Neelam Agarwal PGFM

SWOT of Wal-Mart Vs Star Bazaar:-

Strength of Walmart

Strength of Star Bazaar

1. Largest company in world as far as revenue is concerned. 2. they have developed a loyal customer and employee base. 3. Best-positioned retailer. EDLP so that the customer trust that

1. As star bazaar is a part of Tata group, the brand image is one of the strength. As tata group is know for trust and quality. 2. Positioning Quality product at affordable price. 3. First one stop in shopping who

4. there price points will not change under activity. 5. A one stops shopping experience. 6. He was the 1 retailer to start this concept and educate customer. So they have built a brand image in customers mind. 7. His goal was to save people money to help them live better by offering low cost. 8. Size and buying power is one of the advantage because of there size they get huge discount from the suppliers so they pass these saving to the customer. 9. Their private label are 40% which help them in reducing the
st

experience

india,

frequenc

promotional

succeeded in all categories. 4. Size and merchandise assortment of the store. 5. Stocks customer goods according to For

preference

instance, in Gujarat, people tend to stock up on their pulses

whereas in northern India, basmati rice is a big item. Star Bazaar is aware that people today look at value as a critical component while shopping. And that the first visit may be put down to curiosity, but customers will keep coming back only if they are satisfied with the choices, the quality and the value of the products on sale. 6. Tie ups with suppliers and

production cost. 10. IT is one of the strength - it can see how individual products are performing country-wide, store-by-

Vendors for transportation. 7. It offers a family shopping

experience, where entire family

store at a glance. 11. Global Presence. 12. Cost leader in the retail industry.

can visit together.

. Weakness of Wal-Mart 1. Becuase of the low prices Weakness of Star bazaar


1. Overcrowded during offers. 2. Long lines at

customers often question and are concerned at the quality of the goods. 2. Just controlling such a huge

billing counters

which are time consuming.

organisation is a huge untertaking and in particular managing the employees. 3. Is Since wal-mar is known for its global presence but still it is not present in few countries. 4. Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors.

Opportunities of Wal-mart

Opportunities of Star bazaar

1. It has an opportunity to enter 1. A lot of scope in Indian organized retail into several large markets, as it stands at approximately 4%.

such as continental Europe 2. Increasing mall culture in India. and Asia. Its business in fifteen 3. More people these days prefer to visit countries (relative to the fact that big stores where they can find large there are 195 countries in the variety under one roof.
world) leavesmuch room open

for the retailer. 2. t o t a k e a d v a n t a g e o f e x i s t s within the markets

t h e company already operates within. In the United States, Wal-Mart is typically identified withhuge, undiversified supercenter a wide of products. Wal-Mart could b e n e f i t by opening locations that sell variety

locations that are different in terms of the store type that W al-Mart has

traditionally opened. A mallbased site that sells only could

clothes, for instance,

offer mall-going customers a different experience of the

Wal-Mart brand and give the company access tothe highend consumer If it discretionary were to

market. seize such

an opportunity, Wal-Martcould again utilize its pricing power in order to gain traction in that market. 3. Taking over companies overseas

is also possible. e.g. ASDA in the UK. 4. Home delivery of orders placed through the internet is a big opportunity. Most stores are on the edge of town and as fuel costs rise people are less likely to want to travel. 5. Creation of Walmart convenience stores is a strong possiblity. This overcomes local objections and increased travel costs.

Threats of Wal-mart 1. Wal-Mart faces the threat of other companies, particularly those companies who serve a more 2011). focused Despite of market (Clark, the a

Threats of star Bazaar 1. Unorganized retail also appears to be a threat to Big Bazaars business. A large population still prefers to visit local convenient stores for daily purchases. 2. Competition from other value retail chains such as Shoprite, Reliance (Fresh and trends), Hypercity and D mart, big bazaar. 3. Changing Government policies. 4. International players in india like wal-mart.

providing having all

convenience

shoppers need in one location, Wal-Mart faces competition from other discount businesses in

more specialized roles. 2. t h r e a t o f u n i o n i z a t i o n internally. 3. Being number one means that you are the target of competition, locally and globally . 4. Local competing vendors hate the possible arrival of Walmart and a lot opposition is likely. Also competition from local convenience stores is likely to increase as travel costs to Wal-

Mart increase. 5. Being a global retailer means that you are exposed to political problems in the countries that you operate in.

Cost Leadership:Wal-mart Yes wal mart is a cost leader. No other retailer has the same price strategy as wal-mart has wholesale price. Now Wal-Marts packaging looks cheap. It is designed to make the product look even cheaper than it is. Wal-Mart could raise its prices by a nickel a box, and customers might not even notice. Star Bazaar No star bazaar is not a cost leader. As most of the price is star bazaar is sililar to what you get in any other stores.

Differentiation:Wal-Mart 1. Global Presence 2. Wide range of category with Star Bazaar 1. Wide range of products. 2. First hyper market in India with such a big size.

variety of products under each category.

Focus:Wal-Mart Focus is to expand to different market consumer. Like India. Survival, Success and Prosperity:Wal-Mart Star bazaar Star Bazaar They are focusing to expand to other cities and also tier 2 and tier 3 cities.

In India wal-mart is on survival stage as it Star Bazaar is on success stage. They has just entered into the market. They have to educate Indian customers about them. have already educated customer about their concept and are planning to expand.

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