SWOT Analysis-Grofers
Updated: Apr 14, 2022
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 a first-mover advantage in a 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 in the reviews on various online platforms.
Opportunities:
Globalization has led to opportunities in the international market. Grofers is in a 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.
An E-commerce business model can help Grofers to tie up with local suppliers and logistics providers in the international market.
Threats:
Increasing costs component for working in the 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 organizations especially regarding environmental and labour safety aspects.