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SWOT Analysis of Big Basket

Big Basket is India's largest online grocery retailer. It offers over 18,000 products across various categories delivered to customers' doorsteps. Some of its strengths include a wide product range, exotic items, and discounts. However, it also faces weaknesses such as delivery times and high variable costs. Opportunities for growth include expanding its market share and geographic coverage. Key threats are competition from other players and high customer turnover. The analysis examines how Big Basket has flourished due to favorable economic, social, and technological environments in India.

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Nikhil chadotra
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134 views

SWOT Analysis of Big Basket

Big Basket is India's largest online grocery retailer. It offers over 18,000 products across various categories delivered to customers' doorsteps. Some of its strengths include a wide product range, exotic items, and discounts. However, it also faces weaknesses such as delivery times and high variable costs. Opportunities for growth include expanding its market share and geographic coverage. Key threats are competition from other players and high customer turnover. The analysis examines how Big Basket has flourished due to favorable economic, social, and technological environments in India.

Uploaded by

Nikhil chadotra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: Divyesh Chadotra

Roll: 119021

Subject: Environment for business

BIG Basket

Introduction: Big Basket is the largest online food and grocery store of the country. They
offer products from a wide range of categories that includes Vegetables and Fruits, beverage, dairy
products, Rice and Dal, Spices, Meat, Packaged foods and Personal Care products.

SWOT Analysis of Big Basket:

Strength: Following are the strengths of Big basket

1. Product range: Big basket has more than 18000 products of the app and website

2. Exotic range: It offers exotic fruits, vegetables and imported groceries which are not easily
available in the market

3. Discounts: Big basket give huge discount on the various product so they can attract more
customers

4. Convenience: Big Basket offers an escape from the hassle of standing in the queues of malls or
going all the way to the retail stores. They give the products right at the doorstep and offer
multiple payment options.

5. Low fixed cost: They have very low fixed cost business model as they don’t have inventory cost
Weakness: Following are the weaknesses of the Big Basket

1. Delivery time
2. High variable cost
3. Minimum order quantity
4. Have to be at home when they are about to start delivery

Opportunity:

1. Market share: Big basket has almost 60% of the market share

2. Grocery growth: e-Commerce Grocery marketing is growing at 19% rate

3. Expansion: Many cities yet be covered so they have scope of expansion

4. Cross selling: Cross selling is a major advantage for Big basket as it can sell multiple products
by product bundling.

Threats: Following are the threats to Big Basket

1. Competition:
2. Bigger players: There are many big players like Amazon, Flipkart etc.
3. Customer retention: It is very difficult to retain customers. They would tend to move with the
service provider that offer the most discounts.

Following are the environmental factors in which Big Basket has made its progress and flourished as a
grocery brand:

1) Economic Environment:
Big Basket’s wholesale market has seen a significant improvement in revenues. Their revenues
grew by 35% up to an amount of Rs.1606 crore. The company also experienced a reduction in
losses of 53% to Rs.310 crore. The company also raised an amount of $300 million from Chinese
group Alibaba. The company also has a subsidiary known as Delyver Retail Network, which was
eroded in 2018. The company has been acquired by Big Basket in 2015 but due to non-
profitability from the current operations of the company, it was eroded. The company’s future
growth returns are very promising where they expect a return of 6300 crore in 2020, a valuable
increase from 3200 crore in 2019. One of the greatest advantages that Big Basket enjoys is the
growth potential of the online grocery which is expected to grow to a sizeable number of $2.5
billion by 2020.
2) Social Environment:

Since Big Basket is an online grocery site, the user interface of the company should be user-
friendly in order to keep the customer interaction with the site as smooth as possible. For
customers who are looking to save their money, Big Basket targets them by luring them with
discounts and offerings at regular intervals and providing them with products at very
competitive prices.
The payment portals on the website should be easily accessible as that is the point when a
potential customer turns into a buyer. Many consumers are apprehensive of the security
concerns regarding the payment of bills through an online platform. The preferences of the
users in India have switched to mobile devices. The number of smartphone users and 4G users
have improved at an increasing rate, which has provided a boost to e-commerce websites.

3) Technological Environment:

The funding received by the Big Basket Company from its recent investors has provided the
company with large amount of available funds to invest in different kinds of technology. Of the
$150 million received in funding the company has decided to invest $100 million to improve the
supply chain of their firm. The proposal includes installation of vending machines and setup of
small distribution centers across different cities where the operations of the company currently
are. They have also decided to invest in reseller channels. The main goal behind the investments
to Big Basket is to provide its customers with a two-hour delivery in the top ten cities in which
they operate. Since they deal with perishable products, it would ensure that the products are
delivered in a timely manner and quality along with freshness of the products is maintained.

Conclusion:

To conclude, the above Big Basket Analysis highlights the various elements, which affect its business
performance. This understanding helps to evaluate the criticality of external business factors for any
brand.

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