There is no end to the answers to such questions. I am putting
together my thoughts. I will suggest you please digest them, put
your own thoughts and create an answer out of this.
Conditions:
- The retail industry is subjected to enormous competition - both
in online as well offline format. Industry once dominated by retail
player like Walmart has seen emergence of many players (some of
them quite successful)
- Limited growth potential in domestic space: Developed Countries
are displaying marginal growth rates. USA alone is no longer good
enough to meet the capital market aspirations of the companies. The
firms are therefore going global.
- Margins are narrowing down: this is creating pressure on
retailers. It's such an industry where players like Walmart are
just retailers. They don't add any value to the products. They are
therefore realizing thin margins. The game is now of quantity.
Climate
- Rising penetration of internet and smartphones are shifting the
buying habits from offline mode to online mode.
- Quality, consistency, reliability and dependability are the
factors that will now lead the path to success for industry
players
- Stiff competition: the sector has seen emergence of plethora of
online etailers
- Intense working capital requirement.
Competition
- Offline stores like D mart
- Online players like Flipkart
- Large format superstores
- Small but large number of e-tailers