Strengths:
- One main strength of the retail industry is its large size globally. Globally a very large number of small and big businesses are a part of the retail industry. The number of e-retail businesses has also expanded in the recent years. - The retail industry is financially strong. Globally it is expected to generate $28 trillions by 2020. In 2015, it generated total sales of $20.8 trillion. - Globally, the retail industry is also one of the largest employers. In US alone more than 29 million people are directly employed by the retail industry. Weaknesses: - For most of the retail brands HR management has been problematic. Amazon and Walmart have continued to deal with HR issues. Every year so many legal cases are filed against Walmart. Amazon also troubles the staff by its cruel performance measures - The competition in the retail industry has increased. Proliferation of technology has made entry of new brands easier. Therefore existing brands are under constant pressure related to pricing. More price competition leads to weaker margins. Opportunities: - Growth in the digital technology means that the retail brands can take their customer experience to the next level. - Brands can also use AI and CI to better predict trends and to provide customers with better products and services. - Improved economic conditions have led to higher consumer spending. Threats: - The level of competition is rising. In US apart from the big and small US based brands several Non US brands have entered or are planning to enter the market. This will means major competitive pressure on the incumbent brands. - Demographic patterns have changed and that has affected consumer buying behavior too. The millenials want convenience with excellent customer service and low prices. Unless brands can respond to the changing trends they will not stay ahead in the race. - Economic uncertainty is also a major threat to the brands and combined with the regulatory pressures it translates into a big threat for the retail brands.
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AuthorAbhijeet Pratap Archives
October 2021
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