TOWS analysis for a retailer in the food retail industry. NB: The strengths, weaknesses, opportunities and threats above need to be linked into groups of: SO = Strengths and opportunities WT = Weaknesses and threats WO = Weaknesses and opportunities ST = Strengths and threats The SWOT analysis for the Shoprite holding groups is as follows. 1. Strengths: - Shoprite Holding are Africa's largest consumer good retailer and are seen as the market leaders in the food retail industry. - Shoprite Holdings have a diverse portfolio of brands that span across 13 different industries. Their portfolio consists of: Usave -> Usave offers basic goods at stripped-to-the-bone prices, focusing on lower-income markets. Checkers and Checkers Hyper -> Checkers brand is defined by convenience, quality and freshness, and markets to affluent consumers. Checkers FoodsCheckers Foods -> a smaller format focuses on convenience. - Shoprite holding developed their digital commerce from by creating an online/application base platform called the Checkers 60/60 app. This app allows their customers to order grocery's online and have them delivered within 60 minutes. It is now theNo. 1 grocery app in the country and has over 1.5 million downloads making it the industry leader in grocery - Shoprite Holdingsalso have the rewards program in play which gives customers instant discounts in store. -> They have 20 million customers registered for the program which means they have 20 million loyal customers that will return. - Research and Development = The Shoprite Holding group are innovation drives and put a large portion of their profits back into the research and development of their product and service offering. This can be seen in their investments in data science capabilities as they have a team of 250 members that focus on improving the supply of goods and services to their customers. 2. Weaknesses: - Having a high level of involvement in the sourcing, distribution and storage, financing and ... By having their 'fingers in too many pies' they may lose focus and become inefficient in some departments - Operating across 13 different industries makes (monopolistic approach) puts a target on their backs of companies that specialise in a specific industry as they want to be industry leaders. - Particularly large infrastructure may pose as difficult to maintain market shares in each industry and in each separate entity. - Hesitant to explore new communication channels. ShopRite holdings market their products mainly through traditional marketing channels like radio, new papers and television commercials. Other food retailers have started making use of more modern communications like social media platforms and have tapped into a younger demographic in doing so. - Need more differentiated products - Difficulty responding to new start-up companies 3. Opportunities: - Shoprite holding have acquired large amounts of customer personal information through their ecommerce applications and can use this information to examine their target customers, provide personalised offerings, understand the buying habits and spending patterns sin order to build long-term relationships with them. - Shoprite Holding have already developed the infrastructure to deliver groceries to their customers using the Checkers 60/60 app. They can immolate this infrastructure for their other business and get into the business of delivering pharmaceutical products, furniture and other product offerings. - Checkers have shifted their focus to supply good and service for the middle/high income earners in the South African economy. By providing goods of such high quality, they are now being perceived as an up-market grocery store and have gained market share over competitors in this segment of the market like Woolworths. They have done so by sub-letting space in their stores to popular franchises like Starbucks and Krispy Cream doughnuts. In doing so they are attracting more high-end consumers and can increase their price points. - Shoprite Holding group are the largest fast-moving consumer goods retailer in Africa and operate in 10 different countries in Africa. They have the financial resources to enter even more countries in Africa and in doing so could reach more customers and build a massive infrastructure that provides food services to many more African nations. - They already have a rewards system in place for their Checkers and Shoprite stores and could make these reward systems universal and available to use at any of their stores like Medirite Pharmacy's, Ok food group and House and Home franchises around the country. By centralising their rewards systems, it may work as an incentive for customers who shop at one of their stores to visit other stores for promotions and saving. 4. Threats: - South Africa's rising inflation rates, Shoprite Holding have built their business model around doing everything in their power to offer South African consumer market with the lowest prices possible. Due to inflation rates in South Africa going up by a record 9.1 percent between June of 2021 and June 2022, their brand message of offering low prices consumers may not believe this due to all the price increases and may look at purchasing their food and other goods from another retailer. - Threat of substitute products: All grocery store retailers in south Africa have a lot of the same brands and products available meaning that if the user can't find what they need at a Shoprite store they will happily go purchase the products from another store. It is also very difficult to differentiate product offering on based consumer items (.e Bread, milk etc) and makes product differentiation near to impossible. - South African economy is nearing a recession and factors like loadshedding have a major impact on the revenue the south African food retail industry. - Seasonal products and the price fluctuations that com along with them.

Consider each question in the TOWS matrix. For each question consider how to TOWS Matrix minimize your weaknesses and maximize your strengths. List and prioritize specific strategies and approaches you can take. Praxie Weaknesses Strengths What can you do to minimize your weaknesses What can you do to capitalize on and maximize your strengths so, you can minimize your competitors' or other threats? so, you can minimize your competitors' or other threats? Enter action to help minimize weaknesses Enter action to capitalize strengths Threats What external opportunities exist that you can go after What external opportunities exist that you can go after that will help you minimize your weaknesses? that leverage your strengths? Enter opportunity to minimize weaknesses Enter opportunity to leverage strengths Opportunities 2 Want more best practices? Visit Praxie.com