Strategic Planning is the backbone of any organization. Failing to plan is equal to planning to are unsuccessful. Strategic planning will lead the company into success and will make a company to be prepared for the future troubles. Organizations need to apply auditing systems to assess their performance. The Porter's Five Forces, STEEPLE evaluation, and SWOT analysis helps an organization to analyze its talents and weaknesses. To outdo the competitors, it is very important with an effect marketing strategy. After creating a online marketing strategy, companies must assess its efficiency by using techniques, such as Profile Analysis. This survey analyses each one of these points in detail.
At a period when the very concept of supermarket and hypermarket were unheard in India, one man, Kishore Biyani, dreamt big and started Big Bazaar, the first true hyper market in India. There are 98 supermarkets in 71 locations around India. Big Bazaar is a part of the Future Group. Big Bazaar sells all most all the consumer items in an inexpensive manner. Using price as the competitive edge, Big Bazaar manages successfully and profitably. The primary benefits of Big Bazaar are the progressive sales and marketing promotions, huge variety of products atlanta divorce attorneys store locations, large number of stores around India, and cheap price. There are a few negatives also. As their products are low priced, their stores are always crowded, the billing may take quite a while, customer support and quality is varying.
Failing to plan is planning to are unsuccessful. Whether a company is small, medium, or big, it requires a strategic plan for its progress and success. A proper plan can be course map for a firm. It helps the company to maintain the right monitor and objective oriented. Therefore, strategic ideas are future oriented. Masner defines strategic marketing planning as, "A written affirmation of the marketing seeks of any company, including a affirmation of the merchandise, goals for sales, market stocks and profits, promotional and advertising strategies, pricing policies, distribution channels etc. with specific specs of timescales, individual obligations etc". (Masner, 1988). Any strategic plan will have several guiding rules or components, such as mission of the company, strategic targets of the business, strategic audit, collection research, etc. Here, why don't we analysis the three key concepts of proper planning, such as objective, strategic targets, and strategic audit.
Mission is typically a assertion that evidently expresses the purpose of a business. Having vague mission statements may mislead the business. Therefore, it is vital to truly have a well thought quest. For example, the next is the mission assertion of Big Bazaar:
"We discuss the eye-sight and belief that our customers and stakeholders will be dished up only by creating and executing future cases in the use space leading to economic development.
We would be the trendsetters in growing delivery formats, creating retail realty, making usage affordable for all customer sections - for classes as well as for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- mindful and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united persistence shall be the driving power to make us successful. "
(Source: http://www. pantaloon. com/corporate_state. asp Seen on 02/01/2010)
A good mission declaration will contain what kind of business they are simply in, what their purpose is, who will be the customers, and what is their responsibility to the stakeholders including interpersonal responsibility.
Strategic objectives of a company can be short-term and lasting. The short-term objectives will be the goals a company plans to achieve in one or less than twelve months. The targets can add the products and services they give to the management objectives such as enlarging the human capital or more investment, etc. The Long term objectives make reference to the goals that a company wants to attain over time, several year. The short term goals help the company to attain its long-term objectives. Typically, long-term objects lay out just what a company wants to be. For instance, Big Bazaar desires to become number 1 retailer of fast paced consumer goods. That is a long term business objective which may be achieved by obtaining the short-term objectives. When the marketplace requirements and customer requirements change, companies review their goals and change or update their business goal to suit the marketplace and customer requirements.
Every company will have exterior influences. The external environment will influence the way a small business operates. Sometimes, the exterior environment will offer opportunities with other times it can present threats. Therefore, it is rather important for an organization to analyze or audit the business strategies to become well prepared for the threats and employ the opportunities. There are a few analytical tools designed for proper auditing, such as PESTLE evaluation, Market map, FIVE Causes examination, and SWOT research. These auditing tools help an organization to learn its talents, weaknesses, market competition, opportunities, etc. Consequently, companies can enhance their targets and strategies. Let us examine the SWOT evaluation here.
SWOT is a brief form of Talents, Weakness, Opportunities, and Goodies. By determining these factors, an organization can better understand the market forces, the marketplace competition, competitive companies, new opportunities, etc.
Strengths: The business that can be applied the SWOT analysis must list all the strengths. Identifying the strengths is the first step. An organization may have a huge selection of talents, but it very important to skim them down to a tiny list with only important talents. Big Bazaar's key advantages include wide range of products, many store locations, good offers, and lowest price.
Weaknesses: If a company understands its weaknesses, normally it takes corrective activities to convert those weaknesses into strengths. The competitors can use your weaknesses to their advantage. In this task, list all the main element weaknesses and evaluate the weaknesses and find out the ways to triumph over these weaknesses. Big Bazaar's key weaknesses include slow billing, poor customer support, and too much masses to get.
Opportunities: Opportunities can be defined as the specific inside and exterior condition that might help in the expansion of the company. An organization must be aware of its opportunities and take benefit of those opportunities to improve it competitive advantage. Big Bazaar's opportunities include option of a huge middle class in India with sufficient purchasing vitality and there are many emerging locations where there are no hypermarkets.
Threats: When a business doesn't know its exterior and internal hazards, it may are unsuccessful sooner or later. An organization's dangers are its competitor's benefit. Dangers can be from a rival, from something, from a legislation approved by the federal government, etc. It is highly essential for the companies to minimize the hazards and improve the advantages. Big Bazaar's hazards include new hypermarkets with huge purchases, such as More, Reliance Fresh, Tata Hypermarket, etc.
Porter's Five Causes is an analytical method used for growing effective business strategies. In 1979, Michael E. Porter developed Five Forces theory. He advocated that there are some forces that function for and up against the profitability of an organization. Porter's Five Makes model is often used to determine a company's competitiveness and tactical position.
Threat of New Companies on the market: When a business is profitable, many companies will go into that business. Such a market will attract multiple competitors. This will increase the competitiveness among the firms and at the same time the success will collapse. Inside the retail sector in India, there are extensive large companies, such as Reliance Fresh, More, Tata Hypermarket, Best Buy, etc. These companies pose a competitive danger to Big Bazaar.
Threat of Replacement Products: When many companies produce similar products, there will be troublesome competition and the fixing price will be difficult. The market controls the price tag on the products. If the substitute products are better than the primary product, the consumers will choose the replacement products. Big Bazaar also markets its on brands, such as Pantaloon, DJ&G, etc. As opponents offer a variety of other substitute brands for cheaper price, Big Bazaar also launched multi brands in all their store in an attempt to keep carefully the customers happy.
Consumer's Bargaining Vitality: The bargaining vitality of the consumers can put pressure on the company to reduce the price or even to improve the quality. When there are many selections for the consumers, the brand devotion will be low.
Supplier's Bargaining Vitality: Suppliers can also affect the decisions in a company. Some decisions from the supplier's area, such as price increase, low source, etc can put pressure on the company.
Tough Competition and competitive rivalry: Small competition among the prevailing companies will have an effect on the price, earnings, and option of products and services. When the companies produce similar goods and have similar business aims, the competition will be high.
STEEPLE Analysis is a strategy to analyze how various factors influences the way a business functions. The STEEPLE evaluation examines the Sociable, Technological, Environmental, Economical, Political, Legal, and Ethical factors that will have an effect on an organization.
Social: In cultural analysis, a business must examine the demographics, circulation of income among people, living conditions of people, cultural values of individuals, etc.
Technological: Technological research will study the technological progression that will affect the business, new technological discoveries, etc.
Environmental: It is very important to consider the environmental factors before doing any business. Environmental research examines the factors related to the environmental issues, such as carbon emissions, global warming, etc.
Economical: Economic analysis examines the global market, local financial factors, government Taxes insurance policy, inflation, exchange rates, etc.
Political: The political environment of an country will effect the businesses done for the reason that country. For instance, a socialist country will limit the energy of corporate and business world and will control what sort of companies function.
Legal: Any business, whether local or multinational, must abide by the law of the land, especially company laws. Examining the laws and regulations and abiding by regulations will help the company to operate without legal problems.
Ethical: Ethical examination refers to business ethics and company ethics, such as equal opportunity, women security, harassment free environment, etc. The business enterprise ethics will help the management to build self-confidence of the employees and will help the company to obtain the goodwill of the customers.
The term Marketing Combination was first used by Neil Borden in 1953. Marketing mixture is also called 4 Ps - the 4 Ps are product, price, place, and advertising.
Product: The word product refers to anything that is produced in higher quantities with a business purpose. It's rather a product or something. For instance, Big Bazaar markets various products such as camera, Tv sets, Shirts, Pants, vegetables, etc. Big Bazaar has a huge variety of products that they sell in all their stores.
Price: Price can be an essential aspect in the demand of supply of the product. It is the amount that the client is willing to pay. The purchase price varies predicated on the cost, price of the alternative products, price of the complementary products, income, etc. Generally, if the price is low, the demand will be high. Big Bazaar's motto is good deal. All the products sold at Big Bazaar are cheapest than the marketplace price.
Place: Place refers to the location something or service has been sold. The sales may differ based on the positioning. When a store is within an area where there are lots of residences, then your sales increase. Big Bazaar has its stores in every the main areas of the major towns. It offers easy access to the customers. This is an edge that Big Bazaar has within the competitors.
Promotions: Promotion identifies the marketing communications which is performed to increasing the sales. Big Bazaar uses both electric and print media. Big Bazaar advertises their campaigns in all the weekends in Tv set channels and in Magazines. This helps them catch the attention of the weekend shoppers with their stores.
The main competition for Big Bazaar are Tata Hypermarket, More, and Reliance Fresh. Big Bazaar offers almost everything in the retail sector. From Big Bazaar, you can buy packed food, fruit and vegetables, fish, apparels, playthings, boots to hi-tech electronic digital goods such as Tv sets, cams, iPods, etc. They even have entertainment zones and hotels of their stores. This offers the family a comfortable destination to do shopping and to spend time. When Big Bazaar offers almost everything under a single store, its main opponents offer only professional products. For instance, Reliance Fresh mainly provides vegetables and food items. Tata Hypermarket sells mainly apparels.
Big Bazaar has 98 stores in 71 locations in India. This offers great accessibility for customers. As they have many stores, they purchase product in large for cheap price from the suppliers. This enables Big Bazaar to sell their products for good deal.
Big Bazaar has its stores in 71 metropolitan areas in India. Their store locations are either city centers or huge residential areas. Thus giving Big Bazaar a great benefits over its competitors. Rather than making the customers come to their store by travel, Big Bazaar established their stores in easy to get at locations.
All the merchandise sold in Big Bazaar are listed lower in comparison to its rivals. In India, the price is the key factor that attracts customers. With the right mixture of marketing and procuring the merchandise, Big Bazaar offers the products and services for the lowest price.
Portfolio in business sense means the assortment of business activities or the merchandise a company produces. Business collection strengthens the company's opportunities and its own competitiveness. Portfolio analysis helps the business to investigate its current products and services and understand which of the investment funds brings maximum come back. This way the company can decide where to invest more money. Also, Portfolio analysis helps the company develop home based business strategies and enter new product development.
The most famous Portfolio examination is McKinsey/GE Matrix. It had been developed during 1969-1972 by McKinsey, BCG, and A. D. Little (Robert M. Offer, 2005 p478). This matrix helps the firms in strategic planning in the following four areas:
Allocating Resources: Here, the matrix can be used to examine the business's two sources of success - Industry attractiveness and competitive edge.
Develop Business Strategy: This can help the company to develop the right business strategy to invest in the merchandise or projects that bring the utmost return on investment.
Overall Collection Picture: The portfolio analysis shows the business enterprise activities in a simple diagram. This allows the management team to use better business investment decisions.
Performance Improvement: The stock portfolio analysis helps the company to prepare performance goals and improve their performance calendar year by time.
There are two axes in the McKinsey Matrix: Industry Attractiveness and Competitive Benefits. The business elegance is calculated by analyzing the market size, the speed of revenue over a period, overseas market segments, etc. Alternatively, the Competitive Edge is calculated on the basis of position of the marketplace, how competitive is the marketplace, and return discounted.
Market Size: The marketplace size for Big Bazaar is huge. India has one of the most significant consumer base on the planet. The sales opportunity for fast paced consumer goods market is very glowing. As the idea of hypermarket is new in India, the business opportunity is very huge for Big Bazaar.
Profit Rate: For the past 5 years, Big Bazaar has been making good profit. As Big Bazaar provides almost every items in the fast paced consumer goods category and the demand for such goods is constantly increasing in India, Big Bazaar's earnings constantly increases year by yr.
Market Position: The Indian hypermarket industry is in the appearing position of the life cycle. It will take some more years to enter the development market position as increasingly more companies enter into this sector. As of this moment, the hypermarket industry is flourishing and making good earnings.
Market Competitiveness: Despite the fact that there are just a few huge players in the Indian hypermarket sector, your competition included in this is high. A number of the rivals for Big Bazaar include More. , Reliance, Tata, and Wal-mart (known as Best Price in India).
Return available for sale: Actually, the demand for fast moving consumer goods in India succeeds the source. Therefore, the sales in Big Bazaar keep on increasing time ob calendar year. As Big Bazaar source their products from inside India, they get things really cheap. Therefore the come back discounted is huge.
Globalization has taken in important changes in the Indian market. Globalization possessed both benefits and drawbacks on the Indian companies. Along with the entrance of multinationals in India, Indian companies needed to compete with international companies on all fronts such as technical, managerial, quality of service, price, etc. This made the firms very competitive and increased their quality. On the other hand, globalization also got many Indian industries by wonder and demolished many small range industries in India. Listed below are a few of the changes earned by globalization in Big Bazaar.
Globalization altered the demography of Indian consumers. It created a big range of middleclass with great purchasing power. This new band of consumers was requiring and informed. Also, these were aware of the value of money these are spending on each item. Big Bazaar comprehended this new demography very well and employed it to its advantages. The main target market for Big Bazaar is this new middle class created largely consequently of globalization. Big Bazaar provided quality goods for cheap prices to its demanding customers.
The retail sector in India was unorganized till lately. As increasingly more markets in India exposed to foreign competition, the Indian consumers were mainly urbanized and the business enterprise focused on urbanized centers. If the town consumers didn't got the purchasing power to buy items from supermarkets, the metropolitan population was rich and ready to spend much on items from supermarkets. This proved a boon for Big Bazaar as they already had a consumer base in urban centers. Now, Big Bazaar has its branches in almost all the metropolitan areas and cities in India.
The globalization process many changes in the Indian market, consequently effectiveness, efficiency, and efficiency increased among the Indian companies. This created more careers and which in tern created more riches for people. As a result of increased income, Indian consumers were ready to invest more on acquisitions. This paved just how for several investors to invest in supermarkets, such Big Bazaar, More, and Reliance.
One of the major results of globalization was the changes in the technical entrance. As Indian companies had a need to compete with their overseas counterparts, they adopted latest technology. Big Bazaar uses latest product monitoring systems, hi-tech inventory, computerized billing, CCTV, etc.
As the Indian consumer market is very attractive, it draws in many international companies to invest in India. Up to now, India has not allowed direct accessibility of overseas companies into the Indian retail sector for the fear that it could affect the Indian companies and the top unorganized Indian retail sector. However, overseas companies have began stepping into in the Indian retail market through partnerships. The Wal-Mart has came into India with an alternative name, Best Price. It will pose a high competition to Indian stores such as Big Bazaar.
Big Bazaar faces stiff competition from its rivals who are also reselling their products for cheaper price. As almost all of the retail chains in India are supported by rich investors, this sector will dsicover huge development and huge investment. In addition, with the entry of international companies into India, Big Bazaar need to take varies steps to remain competitive and increase its revenue. The following are a few of the advice to improve the competitiveness of Big Bazaar also to change the changing environment into its benefits:
1. Big Bazaar stores are always congested and congested. This could keep some customers away. Also, the clients will have poor buying experience and consequently they have bad review about Big Bazaar. In order to avoid this, Big Bazaar must broaden the space in every its stores. For example, the Bangalore branch of Big Bazaar was crowded and it got so many small sections. To solve this problem, they built several more floor surfaces to the existing building, providing more store space. Likewise, Big Bazaar must invest in the space extension of its stores.
2. Undesirable Customer service will turn the customers away from a brandname. Globalization has increased the bargaining ability of the clients. Indian customers are now challenging. Also, the multinational companies use better customer services as a distinctive feature. Therefore, it is rather very important to Big Bazaar to boost its customer relations. The majority of its stores do not have a person relations official. Having customer relationships officer or customer support person will definitely improve Big Bazaar's image and brand.
3. Price is not necessarily a competitive gain. Big Bazaar considers that providing products for cheaper price to make an impression on its opponents. However, the competitors also started providing their products for cheaper price. Therefore, in the Indian retail market, price play an important role, but it isn't the only factor. Big Bazaar must start offering assorted products, custom-made products and services, new offers, etc.
4. Focus on the flavor of Indian populace. Indian customers usually would prefer to buy everything after touching it, especially vegetables, rice, and pulses. Therefore advertising packed items might not always work with the Indian customers. It might be better if Big Bazaar also offers the meals items in loose.