Tag Archives: SWOT analysis

Amazon Expands in India Using Hindi Language

Amazon recently hit the one trillion dollar mark in valuation – quite an accomplishment and it puts the company in rarified air. The path to the valuation has not been easy, or fast. Expansion into different services and countries were essential.

Amazon now operates in more than a dozen different countries, including India. India presents a very specific challenge to all of the companies that are operating within its borders; roughly only 10 percent of the country’s 1.3 billion citizens understand English. In effect, this limits the access to online shopping to a majority of the Indian people.

Amazon aims to fix this situation in India. It recently stated that it will make mobile websites and apps available in Hindi – India’s most popular language. Similar to how U.S. citizens can select Spanish as their language of choice, users of the India app will be able to choose Hindi as their preferred language. Although Amazon is the second largest player in India’s multi-billion dollar e-commerce market, the English language is not sufficient to reach the country’s customers.

The task is a difficult one. Using a translation algorithm was insufficient and a far cry from the language and cultural translations that are needed to gain customers’ trust. Only 40% of Indian customers use ecommerce, and of those, roughly one-third only make a single purchase. Amazon also has 14,000 retail locations across India as part of its Amazon Easy program; this allows a local shopkeeper to help customers place orders, receive packages, and deliver them.

The push to Indian languages will be key to gaining new Internet users over the next few years. Research studies forecast that by 2021, 536 million Indians will use their native languages to access the Internet.

Group Activities and Discussion Questions:

  1. Ask students about their experiences at Amazon. What works, doesn’t work?
  2. Poll students: What are some of the challenges and barriers Amazon faces as it expands into India?
  3. View Amazon’s India site: https://www.amazon.in
  4. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats.
  5. Divide students into teams. Have each team develop a SWOT for Amazon in India.
  6. What are the issues and risks?

Source:  New York Times, CNN, other news sources

 

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Sun-Maid Raisins Gets an Update

 

Do you remember the last time you bought raisins? It may have been awhile if you are like many consumers who look for the newest products on the market.

Raisins have been a staple of many families; that box of Sun-Maid Raisins in your pantry is from one of the oldest farm cooperative organizations around. Sun-Maid has been in business since 1912 and the cooperative is owned by family farmers who grow raisins and grapes in the Central Valley of California. However, although longevity can be a powerful statement for a company, it can also keep a company from being seen as relevant and up-to-date by today’s younger Millennial consumers. This is the case faced by Sun-Maid.

For the first time in more than 10 years, Sun-Maid will be launching a nation-wide marketing campaign to attract new consumers. The challenge is clear: Raisins are not a top-of-mind snack and faces many challengers for valuable grocery store shelf-space. Consumers are attracted by innovative, new foods. And, while Sun-Maid has launched new flavors of sour raisin snacks, the need for a makeover was clear.

Maintaining growers is also crucial. Raisin acreage in San Joaquin Valley has declined and raisin crops have been replaced by higher value crops including almonds, wine grapes, and other crops. The challenge is to increase consumption, retain growers, and gain new consumers.

What kind of snack do you buy?

Group Activities and Discussion Questions:

  1. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  2. Review Sun-Maid Raisins: http://www.sunmaid.com
  3. For Sun-Maid, break students into teams and have each team build a SWOT analysis grid.
    1. Strengths: what is company good at?
    2. Weaknesses: what needs work?
    3. Opportunities: what is going on in marketplace?
    4. Threats: what should company be wary of?
  4. Based on the analysis, what are the issues and risks that might occur?
  5. Debrief by building SWOT analysis grid on the white board. Does this give a good picture of the situation faced by Sun-Maid?

Source:  Rodriguez, R. (19 August 2018). Will adding a sour kick get millennials to eat raisins? Fresno Bee.

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IKEA Opens its First Store in India

IKEA has opened its first store in India. The store, located in Hyderabad, cost roughly $100 million to build and is an estimated 400,000 square feet. The company plans to have up to 25 stores in India by 2025.

India has a large and complex retail base. The country’s 1.3 billion people account for about $30 billion per year for furniture and household items. However, unlike the U.S., 95% of the goods are sold through small shops that offer specialty products or single-category stores. IKEA’s broad product mix and store operations had to be significantly revised for India. While the store layout is similar to other IKEAs, the displays are different, featuring hundreds of products priced at 100 rupees or less ($1.45 U.S.).

To research how India’s people live and shop, employees visited about 1,000 homes in different areas of India to understand consumers’ needs. Some differences: most Indians do not use knives to eat, women are shorter than Europeans, and children often sleep in the same room as their parents until they are school-age. In addition, India’s government requires foreign-owned, single-brand retailers to use local suppliers for 30% of the value of the goods sold in India.

IKEA, the Sweden-based multinational, now owns and operates 415 stores in 49 countries around the globe. With revenue in excess of $42 billion (U.S.), and an estimated 12,000 products, the company uses more than 1% of the world’s commercial-product wood.

It’s not always easy to change, but entering a new market requires research and revision.

Group Activities and Discussion Questions:

  1. Ask students about their experiences at IKEA. What works, doesn’t work?
  2. View the IKEA India website: https://www.ikea.com/in/en/
  3. A video of IKEA India store is available at: https://economictimes.indiatimes.com/industry/services/retail/ikea-says-namaste-to-indian-customers-as-it-throws-open-its-first-store-in-hyderabad/videoshow/65340339.cms
  4. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats.
  5. Divide students into teams. Have each team develop a SWOT for IKEA in India.
  6. What are the issues and risks?

Source:  Goel, V. (7 August 2018). Ikea opens first India store, tweaking products but not the vibe. New York Times.

 

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