Pak'nsave Swot Analysis

SWOT analysis of PAK'nSAVE

1. Introduction

With the rapid economy development and the improvement of people’s living standard, many people pay attention to their life quality and recognize the importance of quality grocery. There are many famous supermarkets in New Zealand. PAK'nSAVE is a major and famous supermarket in the New Zealand. SWOT analysis is an effective business strategy to help the organization become more successful. The objective of this report is use SWOT analysis to identify and analyse the internal factors and external factors of PAK'nSAVE, it have to be considered this business’s strengths and weaknesses, as well as the opportunities and threats in the market. The most important things are that this research will offer some recommendation.

1. Background

1. Description of the business

The first Pak'nSave was started in 1985 in New Zealand. These days, there are 50 PAK'nSAVE stores operating across New Zealand. According to PAK’nSAVE (2015), the purpose of PAK'nSAVEis offers lowest food prices and friendly service for customers throughout New Zealand. The most important thing is PAK'nSAVE provides the cardboard boxes for customers. Some people can pack their own groceries, which is cost-saving for supermarket. Besides, people must spend 10 cents to purchase plastic supermarket bags, which can reduce environment pollution for our society. Customers are advised to buy reusable bags or to bring their own.

1. SWOT analysis

Glaister and Falshaw (1999) mentions that,“SWOT analysis is one of the most respected and prevalent tools of strategic planning.”(as cited in  Helms, M. M., & Nixon, J, p.216). It is seen as important fact that SWOT analysis should identify the main internal and external factors to achieving goals. By using SWOT analysis, you can begin to create a strategy that helps you stand out from your competitors, so that you can achieve unwavering success in the marketplace. The SWOT analysis of PAK'nSAVE provided some information that illustrates a comprehensive opinion of the supermarket’s key strengths, weakness, opportunities and potential threats.

1. Analysis

1. Strength

Goldglantz, H. F. (2012) reported that, “strength is meaningful only when it’s useful to satisfy the needs of a customer.” （p.52）.There are a lot of advantages for you to shop at PAK'nSAVE. PAK'nSAVEis one of the New Zealand's famous retailers and has a market leading position in the New Zealand. It has a good reputation in the New Zealand compared with other supermarkets, because the prices are attractive to many people and there are many special things for the customers. It is great choice to help you reduce your overall food budget with occasional bonus. Moreover, PAK’nSAVE (2015) notes that they sell fresh food every day and they have lots of self-checkout registers to help people save the time instead of waiting in line.

1. Weaknesses

Although they are generally cheaper in PAK'nSAVE, people have limit products selections. It is important fact that other grocery shops have various product selections. Some people think that the prices generally competitive with PAK'nSAVEand food quality to be far higher when they shop in Countdown. PAK'nSAVEis face uncertainty in its cost structure that could have bad influence to profitability.

1. Opportunities

It is successful that there are many branches all over the New Zealand in the future. Besides, the continued growth and expansion in domestic markets will be most important determinant of the future growth of profitability. Furthermore, it is common trend that people like to do online shopping at home. PAK'nSAVE has skills and abilities to exploit this opportunity by providing Internet shopping service.