SWOT Analysis of Shoprite. Shoprite is a chain of supermarkets and retail brands. The company is operating its business in 6 states of the US with a network of roundabout 321 locations points. However, the headquarter of the retail brand is in Keasbey, New Jersey, USA.
Some of the main products and services of Shoprite are as follows;
- Salad bar
- Pet supplies
- Alcoholic beverages
- General Merchandise
- Frozen food
- Health and beauty
- Delivery service
- Online shopping store
According to an estimate, the annual revenue of Shoprite in 2022 was 184,078 million dollars, and it has increased by 9.55%. Out of which, the net income of the retail brand was 5,701 million dollars. Approximately, 150,000 employees are working for the company.
Some of the top competitors of Shoprite are as follows;
- Associated Supermarkets
- Toys R Us
Today, we’ll discuss the swot analysis of Shoprite. It is going to analyze the retail brand’s internal strengths and weaknesses; external available opportunities and threats to the supermarket company. Here’s the swot analysis of Shoprite as follows;
Strengths of Shoprite
Some of the key strengths in the SWOT analysis of Shoprite are as follows;
Shoprite is a well-recognized brand and has established powerful brand awareness among its target customer market. The strong brand equity has allowed the company not only to attract existing customers but also new customers as well; develop a profitable relationship with them.
Diversified Income Source
Shoprite has a diversified product portfolio and the company offers a wide range of products ranging from a pharmacy, grocery, pet supplies, and beauty to healthy product items. Such a vast product portfolio helps the company not to rely on a few products, but rather increase its income stream from various sources.
Successful Online Transition
The retail brand has successfully transformed from one industry to another digital market with new goals and objectives, new strategies, techniques, and new ways of doing things. Shoprite has combined four main key areas of its business;
- Value chain digital integration
- Customer relationship management and digital marketing
- Digital integration of various processes
- Employing technology to find new products
Research & Development
Shoprite invests a significant amount of capital in its research and development program and the company has created a culture of innovation and creativity in its organization. The R&D department of the company helps the company in the following ways;
- Higher return for the shareholders
- Competitive pricing strategies
- Customer experience
- New product launches
The retail brand is one of the top retail brands in the US market and the company has established a strong position in the market. In fact, the company is penetrating into new markets, offering different products to international customers, and approaching new customers.
Better Customer Experience
Shoprite offers a superior customer experience to its target customer market than any other brand in the market. The retail brand does so by taking four main steps;
- Personalized approach
- Simplifying the difficult needs
- Immediate response
- Continuous engagement
Weaknesses of Shoprite
Some of the main weaknesses in the SWOT analysis of Shoprite are as follows;
The operational and expenditure cost is very high compared to the other brands in the industry. It becomes difficult for the company to sustain its position in the market relevant to the emerging competition in the market. However, they employ the latest technology and follow new trends, and their profitability is increasing.
Many businesses and companies are employing automated tools and automated technology to achieve efficiency. But Shoprite doesn’t have any clear strategy for whether it would employ automation technology or not. It has created an environment of uncertainty among employees, as they would retain their jobs or not.
High Reliance on Few Items
Shoprite heavily relies on the two main products and services as its major source of income. The high reliance on a few products and services shows that the company is not paying attention to its new products. In fact, the company has a successful track record of introducing new products and services in the market.
No Comprehension of the Company’s Strategy
Shoprite’s employees don’t have any clear understanding of the company’s strategy and its goals and objectives. You can see it clearly in terms of unclear priorities and mixed messages in the company’s marketing and promotional campaigns products. Customers don’t know what the company is planning to achieve, because the promotional campaigns don’t have consistency in them.
Opportunities Available to Shoprite
Some of the available opportunities in the SWOT analysis of Shoprite are as follows;
Updating business Model
Shoprite needs to upgrade its business model by employing the digital payment method to lower international transaction costs and include various other blockchain currencies. If the retail brand employs blockchain technology, then it would lower the piracy of products in China and other countries. Most importantly, it would amplify the company’s popularity of accepting blockchain currencies as a payment method.
The focus of Shoprite has always been on establishing a better relationship with its customers. In fact, the company has employed customer data along with AI and analytics to build its online platform. It allows the company to launch loyalty marketing programs. By doing so, it helps the company to decrease wastage, attractive pricing strategies, personalization approach, and others.
Shoprite has the reputation of having an environment of dominant functional experts and professionals in its internal working environment. It is not good for the company’s growth and productivity. Rather the company should employ the latest technology to establish coordination and unified communication in order to promote teamwork.
Employing Digital Technology
We are living in the world of digitalization, AI, machine learning, and automation technology. Shoprite should employ digital technology to approach more customers, use analytics to gain insight into their interests, needs, and wants. Ultimately, the company could serve customers better with new strategies and better offers.
Threats to Shoprite
Some of the main threats in the SWOT analysis of Shoprite are as follows;
Low Product Lifecycle
The product lifecycle of Shoprite is decreasing. Resultantly, the company is facing the challenge of limited customer loyalty, high marketing and promotional expenses, and increased research and development costs.
Easy Financial Access
Various businesses and financial institutions have made access to business funding much easier. Resultantly, new retail brands are entering the market and they have increased their competitiveness in the market.
3rd Party Supplier
Shoprite is heavily relying on the 3rd party suppliers for various products, and it could badly disrupt the company’s operations and delivery of products. It is a matter of time before suppliers would know their reliance on you, and they would get an upper hand while negotiating the contract deal. Ultimately, you would have no other choice, but to accept their terms.
Conclusion: SWOT Analysis of Shoprite
After an in-depth study of the swot analysis of Shoprite; we have realized that Shoprite is the world’s leading retail and supermarket brand. If you are studying learning about the company’s operations and its functionality, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.