Marketin, Oppotunires, Swot Analsis

In: Business and Management

Opportunities (benefits):
There will be more organization in the sector: Organized retail
will need more workers. According to findings of KPMG , in China, the
employment in both retail and wholesale trade increased from 4% in 1992 to
about 7% in 2001, post reforms and innovative competition in retail sector in
that country.

Healthy Competition will be boosted and there will be a
check on the prices (inflation):Retail giants such as Walmart,
Carrefour, Tesco, Target and other global retail companies already have
operations in other countries for over 30 years. Until now, they have not at all
become monopolies rather they have managed to keep a check on the food
inflation through their healthy competitive practices.

Create transparency in the system: the intermediaries operating
as per mandi norms do not have transparency in their pricing. According to
some of the reports, an average Indian farmer realises only one-third of the
price, which the final consumer pays.

Intermediaries and mandi system will be evicted, hence
directly benefiting the farmers and producers: the prices of
commodities will automatically be checked. For example, according to
Business Standard, Walmart has introduced ―Direct Farm Project‖ at Haider
Nagar in Punjab, where 110 farmers have been connected with Bharti
Walmart for sourcing fresh vegetables directly.

Quality Control and Control over Leakage and Wastage:
due to organisation of the sector, 40% of the production does not reach the
ultimate consumer. According to the news in Times of India, 42% of the
children below the age group of 5 are malnourished and Prime Minister
Dr.Manmohan Singh has termed it as ―national shame‖. Food often gets rot in
farm, in transit and in state-run warehouses. Cost conscious and highly
competitive retailers will try to avoid these wastages and losses and it will...

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