SWOT Analysis-Grofers

Updated: Oct 11, 2020

Author: Damini Chandankar

Strengths:

  • Powerful Investors like SoftBank Vision Fund, and others including Apoletto Asia, Sequoia Capital

  • Strong relationship with existing suppliers

  • The products and brand portfolio of Grofers is enabling it to target various segments in the domestic market at the same time

  • High Margins – Grofers charges a premium compared to its competitors.

  • Grofers has first mover advantage in number of segments. It has experimented in various areas.

  • Effective Utilization of Delivery infrastructure

Weaknesses:

  • Project Management is too focused on internal delivery rather than considering all the interests of external stakeholders.

  • Even though Grofers has integrated technology in the backend processes it has still not been able to harness the power of technology in the front end processes.

  • Even though the demand for products has not gone down but there is a simmering sense of dissatisfaction among the customers of Grofers. It is reflected on the reviews on various on-line platforms.


Opportunities:

  • Globalization has led to opportunities in the international market. Grofers is in prime position to tap on those opportunities and grow the market share.

  • Grofers can explore adjacent industries to further market growth especially by extending the features of present products and services.

  • Increasing Standardization – Grofers can leverage this trend to reduce the number of offerings in the market and focus the marketing efforts on only the most successful products.

  • E-commerce business model can help Grofers to tie up with local suppliers and logistics provider in international market.

Threats:

  • Increasing costs component for working in developed market.

  • Credit Binge post 2008 Recession – Easy access to credit can be over any time, so Grofers should focus on reducing its dependence on debt to expand.

  • Grofers should keep a close eye on the fast changing government regulations under the growing pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects.

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