But soon enough, the promoters, who held around 60 per cent stake, went on an expansion spree without strengthening the back-end.
The national chains of supermarkets, even with their IT systems have not been able to gauge this. The case ends with a discussion on the challenges that Subhiksha faces in the near future.
If you don't do well here, you have only yourself to blame. This model has been the key building block for the success of Subhiksha in making it the oldest discount chain in the country.
Thus sinking into unrepaired conditions Subhiksha has to compete with its high profile competitors like RPG, Reliance retail and Future group etc. Reliance Retail has set upodd stores in the past two years, almost at the rate of one store per day, Future Group has begun opening a new nofrills discount retail chain called KBs Fair Price Stores, a format that is similar in concept to Subhiksha stores.
In the process it succeeded in building a sound brand name over years with its no-frill, discount format. And when they have started implement ion of SAP the time has gone for survival of Subhiksha.
With little cash left in its kitty, Subhiksha now has its back against the wall. To assess the Indian retail potential and analyse the feasibility for coexistence of several retail formats To understand the growth and status of various Indian retailers To analyse the factors responsible for the rise and fall of Subhiksha To draw lessons from the meteoric rise and colossal fall of Subhiksha.
The common thought that runs through their minds is What is the harm in putting them close to the entrance and make my life easier. Subhiksha, which was started as a discount store inwas based in Chennai, India. We will wait for another two to three months to decide how to go about it.
Suddenly, Subhikshas management found that they could not borrow anymore; they just needed Rs. With Indian organised retail industry blooming under the economic liberalisations and attention from the global players, Subhiksha was expected to grow bigger, but as global recession set in, credit markets froze and Subhiksha stumbled as its capital structure could not support the requirement.
Being a pioneer in the organised retailing in India, Subhiksha became India's largest retail chain with 1, stores across the country.
For instance, if a person from a small town were to visit a huge mall in the larger cities, it would undoubtedly awe them with all the wonderful things they seem to offer but how far would the acceptance level be to use an elevator every week for purchase of small stuff which could be easily bought from the shop next door.
In the absence of funds but with unwarrantedzeal to maintain the expansion plan the management diverted working capital to fund. However, a normal household uses no more than 20 product categories on a regular basis.
On the contrary, unorganized retailers leverage the inefficiencies of the system and encourage consumers to drive a hard bargain, which enables a win-win situation for both. The differentiation could be on the basis of promotions, and also the on the basis of sales promotion activities.
Informed customers about promotional offers. The company had reportedly defaulted on its vendor payments which resulted in empty shelves on its stores. The chain was envisaged as a low-cost, no-frills neighbourhood convenient store, which actually did work for some time.
The overextended chain imploded and all stores across the country were shut down, most likely never to open again. Customers are more aware and can easily figure out that the supermarkets push their own brands compared to the national brands because they make more money over there.
The largest retail value chain of India- Subhiksha, failed. This case analyses some of the reasons for the same.
Largest retail value chain in India with outlets started in Subhiksha Case Study TO GAUGE THE PRICES THE CUSTOMERS ARE WILLING TO PAY AND THEIR SERVICE EXPECTATIONS IN ONLINE GROCERY Презентация к докладу В.
Case Study on Subhiksha Understanding the failed retail model & suggesting a restructure plan Team: SOCH Team Members: 1) Nidhi Acharya 2) Ritika Garg 3) Vikesh Jain Under the guidance of Dr. Mini Mathur.
Background: It was an era of software industry booming with. Subhiksha Case Study Essay Sample. Subhiksha is India’s largest retail chain — or some would prefer to say “it was.” Over the past few months, the network of neighborhood discount shops has been coming apart at the seams.Subhiksha case study