Subhiksha: Managing Store Operations Harvard Case Solution & Analysis

Founded in 1997, Subhiksha grown from one store in 1997 to more than 1,000 outlets in 2008. It sold FMCG, grocery, pharmacy, mobile products, fruits and vegetables (F & V). It was the biggest supermarket and mobile retailer in India with a presence in 90 cities. In 2008, organized retail accounts for about 4% of the industry share. Although organized retail has been identified as high-growth area in the middle of 2008, players who entered the Indian retail realized that organized retail in India is a tough business. Different players (Reliance, Bharti, Birla, and Future Group) experimented with different formats and models. Subhiksha decided to come up with its own model, which in its opinion was suitable to the Indian context. Subhiksha focuses on the middle and lower classes, and not high-end consumers. To do this, he did it with the everyday low price model and are located several small shops to get closer to the customer. At the operational level, it is planned to increase steadily during the delivery efficiency of delivery of goods at low prices. Subhiksha business model is explained in the detailed description of store operations (Indiranagar), located in Bangalore. It also describes the activities of the distribution center, which served in the shop serving Indiranagar than 58 other stores. The case discusses the problem of organized retail trade in general and specific objectives of inventory and cost management to a discount retailer. It also provides detailed data that can be used to diagnose the system's supply chain Subhiksha. "Hide
by Janat Shah, Rahul Patil, Trilochan Sastry Source: Indian Institute of Management, Bangalore 23 pages. Publication Date: 01 May 2010. Prod. #: IMB323-PDF-ENG

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