Introduction Company Mission Operations Impacts of IT SWOT Alternatives
Strengths:
ü Online shopping is easy and convenient since it uses “one-click” technology, thus saves time for the consumers. Furthermore, they can shop in the comfort of their own home in spite of the timing. Hotline is also provided for inquiry.
ü It has broad and deep assortment of products.
ü With Internet, this site has achieved both richness and reach. Rich in the sense that it supplies in-depth and detailed information, while reaching customers worldwide with its extensive range of products.
ü Value-added features like shopping cart is provided to keep track of the total expenses and the goods bought. Nutrition-related informations are also posted.
ü Labour-cost saving since hiring of salespersons are not necessary to serve online customers.
ü Different payment options are being offered (i.e. credit card, GIRO, cash or cheque on delivery).
ü The site has personalized options. Consumers are able to keep track of what they have recently viewed. Feedback can also be given.
ü The layout of the site, that is similar to the most popular E-commerce web site Amazon.com, is user-friendly and appeals to the consumers.
ü Brand image and reputation are already established.
Weaknesses:
û The site has to be maintained and updated regularly. Thus a cost is involved.
û Many are still uncertain and insecure about online shopping. With many Internet frauds around, consumers may feel threatened when disclosing their personal information or making any transactions online.
û Low and middle-income household may prefer visiting a physical store rather than online shopping since consumers may face higher expenses due to delivery charges.
û It takes time before the goods are being delivered to the consumers’ doorsteps.
û It is limited to people with Internet access or areas with Internet connections. Majority of the older generation may be computer illiterate.
Opportunities:
ü The site can offer other services such as, comparison of nutritional value and price of product substitutes of different brands so as to allow easier decision-making.
ü NTUC Fairprice can also form partnerships or strategic alliances for financial backup.
ü Join venture with other supermarkets both locally and internationally.
ü Export its goods or go into globalization to gain a competitive edge.
ü Seek low cost manufacturing facilities elsewhere (e.g. Thailand, China and Hong Kong).
Threats:
û Consumers may enjoy shopping in a physical store the traditional way.
û www.fairprice.com.sg may also face direct competitors (e.g. Cold Storage, Shop & Save, Carrefour etc) which also provide online shopping service. Indirect competitors in the form of physical stores (e.g. 7-eleven, Cheers, and other provision stores) may also pose a threat since they are convenient to the consumers by having 24-hr service or due to their location in the neighborhood area.
û Operates in a highly competitive industry. Competitors may have competitive advantage over NTUC Fairprice.
û New entry of other competitors may also emerge in the near future.
