Shiny Provisions Has a Few Strengths From

Shiny Provisions has a few strengths from which to draw competitive advantage. The company has an established history and brand, something that will help to attract customers and grow the business. The relationships that Shiny has with suppliers is another strength that helps Shiny, because it can negotiate better prices and terms from the suppliers, things that can give Shiny a competitive advantage.

Shiny Provisions does have some weaknesses, however. The company does not have sophisticated marketing or merchandising techniques, something that puts the store at a disadvantage with newer, more modern stores. It is difficult to attract wealthier clients with the current product mix, something that could also be seen as a weakness. Growth options may be limited as a result.

There are a lot of opportunities in the dynamic Indian retailing market. The Indian population is not only growing, but it is becoming wealthier as well. The industry is intensely fragmented, so there is tremendous opportunity for a firm that can build up a brand and some core competencies. There is even room to grow with the space that Shiny already has, simply by upgrading the premises, improving merchandising capabilities, improving the product line and the customer service.

The rapid pace of change also brings with it a number of threats. The barriers to entry are very low, so there is the constant threat of new competition. In addition, growth in the market is in part dependent on the continuation of the Indian economic miracle. If the economic begins to struggle, the market could become challenging very quickly.

There are significant differences between retailing in the developed and developing worlds. In the former, retailing has become professionalized, and in many leading companies has become dominated by statistical analysis. Information drives firms like Wal-Mart, Target and Costco. In the developing world, retailing still relies on the proprietor to actively manage, based on experience, feel and much less on modern techniques. Relationships become a much more important component of the business in the developing world.

Modern retailing tends to be confusing at first for customers who have relied on kiranas. There is a conflict between the relatively impersonal style of modern retailers and the wide variety of goods for sale. Consumers like the latter, but they are often left cold by the former. As a result, retailers in a country like India are often serving entirely different demographics. Shiny Provision is a kirana that serves the local community, but faces competition from modern retailers. The modern retailers are more upscale, and this is the clientele that they serve. In the Indian market, this clientele is growing and is the focus of intense competition for the rupees that they have to spend.