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 Introduction      Company Mission      Operations      Impacts of IT      SWOT      Alternatives

 

SWOT Analysis

 

Strengths:

 

      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.

      It has broad and deep assortment of products.

      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.

      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.

      Labour-cost saving since hiring of salespersons are not necessary to serve online customers.

      Different payment options are being offered (i.e. credit card, GIRO, cash or cheque on delivery).

      The site has personalized options. Consumers are able to keep track of what they have recently viewed. Feedback can also be given.

      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.

      Brand image and reputation are already established.


Weaknesses:

 

       The site has to be maintained and updated regularly. Thus a cost is involved.

       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.

       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.

       It takes time before the goods are being delivered to the consumers doorsteps.

       It is limited to people with Internet access or areas with Internet connections. Majority of the older generation may be computer illiterate.

 

Opportunities:

 

      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.

      NTUC Fairprice can also form partnerships or strategic alliances for financial backup.

      Join venture with other supermarkets both locally and internationally.

      Export its goods or go into globalization to gain a competitive edge.

      Seek low cost manufacturing facilities elsewhere (e.g. Thailand, China and Hong Kong).

 

Threats:

 

       Consumers may enjoy shopping in a physical store the traditional way.

       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.

       Operates in a highly competitive industry. Competitors may have competitive advantage over NTUC Fairprice.

       New entry of other competitors may also emerge in the near future.