Pick N Pay Swot Analysis

Pick n Pay the second major supermarket chain store in South Africa, established in 1967. It can be found in different regions of southern Africa, like Botswana, Mozambique, Zambia, Zimbabwe, Lesotho, and Namibia also in as Mauritius and "had planned to open in Republic of Malawi however has yet to do therefore."(PicknPay,2016) pick n Pay Stores restricted, through its subsidiaries and associates, operates within the retail sector on the African continent.

Pick n Pay is the representative family store targeted on the consumer. Since 1967 when consumer champion Raymond Ackerman purchased the primary few stores, the Ackerman family’s vision has fully grown and expanded to currently through stores in South Africa, Namibia, Botswana, Zambia, Mozambique,

Strength:

1.Cost advantage due to economies of scale

2.Rapid Online growth is boosting sales through a new channel

3. Customer loyalty is high because of strong focus on good service

4.Strong brand equity developed due to long heritage and presence in over 10 countries

5.Strong efficient Supply chain managed by 50000 people

6.Reputation management is done extensively by the company including a major rebranding in 2007

7.CSR programs and Sponsorship have improved the company reputation improving its brand equity and image as a family store

Weaknesses:

1. Less marketing communication to public about their image

2. The large size had made the company complacent in its operations leading to loss of major market share

3.Slower rollout into emerging markets

Opportunities:

1. Emerging markets and expansion abroad

2. Innovation in supply chain technology

3. Product and services expansion

4. Distribution and national expansion, 710 stores nationally

5. Franchise model is a lucrative opportunity for a company like Pick n Pay with a long heritage and strong brand equity

6. Rebranding the company to appeal to younger target