PANTALOONS
Pantaloons:
ERP implementation
STEP
1: Problem Diagnosis
More than eight years
after it forayed into the retail business, Pantaloon Retail decided to
implement SAP to keep itself competitive in the rapidly growing Indian retail
market. Store operations have never been as important to retailers as they are
now. Successful retailers are those who know that the battle for customers is
only won at the frontline, which in the case of a retail chain is at its
stores. Pantaloon was regularly opening stores in the metros and there was an
urgent need for a reliable enterprise wide application to help run its business
effectively.
The key challenges
faced by pantaloons were the difficulties during the data migration and in
managing the interim period when the project was underway for about six months.
Moreover, migrating unorganized data to an organized format is a challenging
task. Pantaloon has not been able to see immediate benefits from this
implementation. This application certainly has long term benefits which will be
seen when the performance of various aspects will be analyzed. Therefore, the problem is not with technology but gap in
the perception and possibility.
STEP
2: Environmental Scanning
SWOT
Analysis
Strengths:
Ø
Pioneer in the industry, largest market share
and capitalization.
Ø
Reputation for value for money (Competitive pricing),
convenience and a wide range of products all in one store
Ø
Presence in major cities
Ø
Highly Strategic human resource management and
development. It invests time and money in training people, and retaining them.
Ø
Most trusted and respected brand by the
consumers
Ø
Being financially strong helps pantaloons retail
India deal with any problems, ride any dip in profits and out perform their
rivals
Ø
Development and Innovation are high at
Pantaloons India with regards to it products and consumer preferences and
lifestyle changes which keep its ahead of its competitors.
Weaknesses:
Ø
Pantaloons do not function internationally,
which has an effect on success, as they do not reach consumers in overseas
markets.
Ø
PRIL is the World’s largest grocery retailer and
control of its empire, despite its IT advantages, could leave it weak in some
areas due to the huge span of control
Ø
Since Pantaloons Retail India Ltd sell products
across many sectors, it may not have the flexibility of some of its more
focused competitors.
Ø
Each business line faces competition from
specialty companies. Fashion segment, Shoppers Stop, Trent, Lifestyle. In
hypermarket-RPG (Spencer’s), Trent (Star India Bazaar) In Food business,
Reliance Fresh, Spinach, Food World
Opportunities:
Ø
Huge untapped market (The Indian middle class is
already 30 Crores & is projected to grow to over 66 Crores by 2011 making
India one of the largest consumer markets of the world)
Ø
Organized retail is only 5% of the total
retailing market in India. It is estimated to grow at the rate of 30-35% p.a.
and reach INR 2, 00, 000 Crores by 2013.
Ø
To take over, merge with, or form strategic
alliances with other global retailers, focusing on specific markets
Ø
New locations and store types offer PRIL
opportunities to exploit market development.(Diversification into insurance ,
property, and variety of products and stores)
Ø
Opportunities exist for PRIL to continue with
its current strategy of large, super centres.
Ø
Rural Retailing
Threats:
Ø
Being number one means that you are the target
of competition.(Extra competition and new competitors entering the market could
unsteady pantaloons retail India)
Ø
A slow economy or financial slowdown could have
a major impact on pantaloons retail India business and profits.
Ø
Consumer lifestyle changes could lead to less of
a demand for pantaloons retail India products/services
Ø
Price wars between competitors, price cuts and
so on could damage profits for pantaloons retail India
Ø
The actions of a competitor could be a major
threat against pantaloons retail India, for instance, if they bring in new
technology or increase their workforce to meet demand.
To read more…….
Contact us -
Writekraft Research & Publications LLP
www.writekraft.com
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