In-Depth SWOT Analysis of Future Enterprises – IT Enabled End-to-end Supply Chain & Logistics Company

Quick Stats on Future Enterprises

Founder	Kishore Biyani
Year Founded	1987
Origin	Mumbai, Maharashtra
No. of Employees	50,000+
Company Type	Public
Market Cap	Rs 204.72 Crore (2021)
Annual Revenue	Rs 590.41 Crore (2021)
Net Income/ Profit	Rs 270.9 Crore (2021)

 

Products & Services by Future Enterprises 

• Retailing
• Insurance
• Logistics
• Integrated Food
• FMCG

Competitors of Future Enterprises

Here are the close competitors of the Company:

• Oricon Enterprises Ltd
• Pidilite Enterprises Ltd
• Piramal Enterprises Ltd
• 3M India Ltd
• Adani Enterprises Ltd
• Alembic Ltd
• Apar Industries Ltd
• DCM Shriram Ltd

SWOT Analysis of Future Enterprises

SWOT Analysis is a basic method that can help a company examine what it does best right now and develop a successful future strategy. It exposes the areas where people are holding back or how competitors may profit.

With the growing neck-and-neck rivalry in the retail sector, it is critical for organisations like Future Enterprises to examine the business environment.

Now first let’s begin with the strengths of the company from the SWOT analysis of Future Enterprises.

Strengths of Future Enterprises

• Deals in Various Segments: Future Enterprises focuses on providing a complete retail experience hub. It has various stores like hypermarkets, supermarkets, convenience stores, and fashion stores. Future Enterprises provides customers with a wide selection of products and services under various retail brands.
• Pricing is USP: Future Enterprises’ pricing policy has helped them attract customers which have heavily contributed to increasing its market share among its competitors. The pricing on almost all of its offerings is less than the usual MRP.
• Easement of Payment: Future Enterprises has its E-Wallet called Future Pay which is like a digital wallet for shopping across Future Group stores. Also, there is a customer loyalty program through which customers can earn and redeem points at any of Future Group’s stores.

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• National Presence: Future Enterprises has its presence almost everywhere in India, which makes it the most preferred retailer by the customers: It has its presence in about 400 Indian cities.
• Distribution Channels: Future Enterprises has a healthy and stable distribution system that ensures that the products of partners are easily accessible on time and allows it to operate in many locations in India.
• Development of Workforce: Future Enterprises makes significant investments in employee training and development, resulting in a trained and motivated team.
• Cutting-edge Technologies: Introducing and applying innovations to their entire gamut of supply chain services ensures speedy distribution. Cutting-edge technology, a wide range of innovative, vertical-specific products and value-added services delivers unmatched standards of service quality to its customers.
• The Advantage of Business Alliance: In an ever-increasingly crowded market Future Enterprises’s market share in the integrated supply chain and logistics industry is quickly expanding as a result of the new partnerships.

Weakness of Future Enterprises

• Dependent on One Nation: Future Enterprises is dependent heavily on India and is susceptible to foreign players.
• Employee Turnover: Despite spending a lot of money on employee training and development, there has been a high employee turnover compared to comparable companies.
• Research and Development: Future Enterprises have not spent wisely on research and development, resulting in demand forecasting gaps and possibilities being missed.
• Loan Repayments: Future Retail and Future Enterprises defaulted on Rs 8,158 cr loan repayments. Increasing loan repayments are always risky for any company.
• Rented Assets: Future Enterprises stores like Big Bazaar, Food Bazaar & FBB operate mostly through rented stores in malls, resulting in higher costs and the majority of sales going to pay rents.
• Staff Resigning: The two talented directors of Future Enterprises resigned from the company due to increasing workload and the company defaulting on payment of Rs 2,835.65 crore to various banks and lenders.
• Organisational Structure: Future Enterprises has an organisational structure that places the majority of decision-making at the top, limiting innovation at lower levels.

Opportunities for Future Enterprises

Openings or chances for something good to happen are referred to as opportunities. These are the results of events that occur outside of the organisation.

• Developing Economies: The entire economy is open, and Future Enterprises has a rising opportunity to access burgeoning developing economies.
• Identity Advantage: It has the potential to capitalise on its brand identity and diversify its product offerings.
• First Mover Advantage: Customers are becoming more aware of current trends, and by analysing them, it is possible to gain a competitive advantage in the marketplace.
• Skilled Workforce: With so many advancements in the education industry in terms of specialised courses, Future Enterprises now has a greater potential to hire competent workers. As a result, costs are being reduced.
• Growth Potential: Future Enterprises stores aspire to be India’s most valuable retail stores for its customers. They can take this as a motivation to grow more in the market such as through global expansion and tie-ups with international brands.

Threats to Future Enterprises

Anything that can harm your firm from the outside is considered a threat. A company must anticipate threats.

• Growing Trends: Customers are becoming more aware of current trends and the brands they use, putting pressure on businesses to alter regularly.
• Skilled Labour Worldwide: With the development of the company into country markets, there is a risk of missing out on competent labour.
• Competitors: For organisations working on comparable product lines, competition is always a threat and Future Enterprises has been facing huge competition from its rivals. 
• New Entrants: There is a significant risk of losing market share when there are little or no restrictions on new enterprises entering the market. Future Enterprises must devise new methods to preserve their place in the industry.
• Current Happenings: Currently, Future Enterprises’ position is not good in the market. The company is under huge pressure of loan repayments and talented staff are resigning. If loans are not cleared will lead the company to face big challenges or the chances are higher of the company getting diluted completely. 
• Business Environment: The nature of the corporate environment is dynamic. If a company fails to adequately analyse it, the odds of failure are high.
• Government Policies: There is a continuous change in government policies across different countries. Moreover, Political unrest in the country can impede business, resulting in lower performance and higher costs. 

This ends our comprehensive SWOT analysis of Future Enterprises. Let us conclude our learnings below.