In this article, we have done the SWOT Analysis of D-Mart. SWOT Analysis of D-Mart focuses on Strengths, Weakness, Opportunities, and Threats. D-Mart is an Indian focused commercial chain of hypermarkets and supermarkets. Under its umbrella, the chain that is a multi-category store offers a wide variety of items. Market goods, personal care products, groceries, home care solutions, kitchenware, furniture, utensils, and home appliances are some of the categories offered by D-Mart.
D-Mart was founded by Mr. Radhakishan Damani with the goal of providing value-based products at affordable rates to families across the world. D-Mart is said to be based on the model of Big Bazaar and is pursuing a similar pricing strategy. But it D-Mart Pricing is better than Big Bazaar, Reliance, and even Walmart BestPrice. The Mumbai based company also markets a number of its private labels, such as D-Mart Premia and D-Mart Minimax.
D-Mart has several stores at various locations throughout India and also a distribution system that is relatively well spread out. In 2016, the company reported annual revenue of $1.86 billion, and business is expected to show steady growth as well.
Strengths in the SWOT analysis of D-Mart
- Focus on the long-term: Damani, D Mart’s founder is an investor and hence the company has concentrated solely on long-term profits. This has resulted in the company optimizing its returns through a pricing approach driven by demand.
- Slow scaling: D Mart began on a very low keynote and gradually took its time to raise the ladder upwards. This gave the company greater leverage and deeper knowledge of its supply chain, as well as allowing them to better handle the bottom line.
- Customer-Centered Management Approach : D Mart has a very strong workplace policy in place and is very open in its interactions with the employees. They do have a strong relationship with vendors and manufacturers and are satisfied with stakeholders.
- Discount policy: One aspect that sets D Mart apart from his rival is its massive strategy of discounting. The store is selling vital items at a flat discount price that most rivals are unable to match and this has helped them reach the market.
- Clear distinction based on price: D Mart never adopted the trends set by other rival retail companies but believed in setting their own trends. Through a simple price-based distinction they dominated the market and sold their products at much lower prices than rivals.
Weaknesses in the SWOT analysis of D-Mart
- Focus on other places: D Mart has concentrated mainly on the Western States and has a very small presence in the South, quite unlike its rivals, who are present everywhere. That has prevented them from gaining popularity in the market.
- Slow growth: Nearly 16 years ago, D Mart established much before the retail boom set a fire in India. However, owing mainly to its long-term outlook, it has not been able to dominate the market, even as many of the later entrants.
- Low pricing sustainability: The company has a zero credit policy and so manufacturers and suppliers offer them a much better deal which is how the business can afford the low prices that the rivals can not imagine.
- No frills: D Mart follows a No-frills strategy wherever possible the emphasis is on cutting costs. Their services are central and most upmarket stores lack the frills. The clients who come here are essentially looking at the low prices of the items on sale. Therefore the longevity of this differentiator is uncertain.
Opportunities in the SWOT analysis of D-Mart
- Technology: Technology has a lot to contribute to retailers in terms of in-store experiences and retailers can use IoT, artificial intelligence, etc. to create value-adding services for their customers for which they can charge a premium.
- Service personalization: Consumers are searching for customized services they are willing to pay extra for. Retailers should expand on this willingness to pay more and boost the quality of services they offer.
- New Developing Markets: New developing markets and mall culture can be the biggest opportunity for the company.
- South of India: D-Mart can also open stores in the south and areas where no store is there.
Threats in the SWOT analysis of D mart
- People in large cities, in general, are particularly lethargic about leaving their homes and often tend to shop online. So companies such as Amazon and Flipkart are now big threats to most retailers.
- Online startups are the hottest trend in India. Many of these are aggregators that cost-effectively put the manufacturer and the consumer together. These companies are the emerging threats more so because in the aggregation industry many new brands are emerging mainly due to lower entry barriers.
- Global competitors.
- Competition among Best Price & Reliance Retail.
- Unorganized retail is also a big threat.
- Government Policies and regulations related to the retail sector.
- International Players who are willing to open stores in India.
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