SW
STRENGTHS
Product Range: A wide range of 18000 products is offered by Big Basket.
Discounts: Big Basket offers discounts and coupons on various
purchases. They also bundle products to maximize sales
Target Group: They run efficient age and role specific advertisement
campaigns that targets their customers very carefully
Differentiation in Products: Big Basket offers exotic fruits, vegetables
and imported groceries that are not easily available in the nearby retail
outlets.
Low Fixed Cost business model: Most items that are offered by the Big
Basket are perishable hence they depend on the retail stores they are
coordinating with for the products. This means they have no inventory
cost and makes their business model more profitable.
Market: Indian retail market is valued at more than approx. $550
million and grocery alone covers 60% of this share. Hence it’s a huge
market
Grocery Growth: India is the 6th largest grocery market in the world.
The online grocery market is growing with a growth rate of 19%.
Cross selling and Value Packaging – Cross selling is a major advantage
OT
for Big basket as it can sell multiple products by product bundling and
suggesting them to the potential customers with certain discounts and
incentives.
Expansion: Many cities are still not covered by these startups and Big
Basket can target them and gain the first movers advantage.
OPPORTUNITIES
WEAKNESSES
High Variable Cost: Several delivery guys, delivery trucks,
storage hubs need to be employed for perishable items, in
certain situations high wastage occurs making the business
run at a high variable cost.
Minimum order quantity/price compulsion: Big Basket
does not offer home-delivery below a certain set order
price limit.
Order Cancellations: Big basket depends on stores that
they have tied-up with to provide them the items. This
sometimes tend in cancellation of orders if the stores do
not have that item with them.
SWOT
Analysis of
Big Basket Competition: It has small presence in terms of cities covered
hence, it is getting a huge competition from other startups like
Grofers, PepperTap, Nature’s Basket, Zop Now, Aaram Shop, Mera
Grocer, etc.
Customer Retention: It is very difficult to retain customers. They
would tend to move with the service provider that offers the most
discounts.
Bigger Players: Bigger players in terms of financial backing and
presence are also entering this lucrative industry. Players like
Amazon, Flipkart and Google have already entered.
Smaller Players: Many other localized shops have picked up on this
trend and have started home delivery service to nearby customers
thereby killing groups of target customers across regions and cities.
THREATS