Subhiksha: Managing Store Operations

Case Analysis

Founded in 1997, Subhiksha had grown from one store in 1997 to more than 1,000 outlets in 2008. It sold FMCG, grocery, pharmacy, mobile products, and fruits and vegetables (F & V). It was the biggest supermarket and mobile retail chain in India with presence in 90 cities. In 2008, organized retail accounted for approximately 4% industry share. Although identified as organized retail growth area from the middle of 2008 had players who had entered the Indian retail sector that organized re realized … Read more »

Founded in 1997, Subhiksha had grown from one store in 1997 to more than 1,000 outlets in 2008. It sold FMCG, grocery, pharmacy, mobile products, and fruits and vegetables (F & V). It was the biggest supermarket and mobile retail chain in India with presence in 90 cities. In 2008, organized retail accounted for approximately 4% industry share. Although identified as organized retail growth area from the middle of 2008 had players who entered the Indian retail sector had recognized that organized retail in India would be tough business. Various players (Reliance, Bharti, Birla and the Future Group) were to experiment with different styles and models. Subhiksha decided to come up with their own model, which in his view, appropriate to the Indian context. Subhiksha targeted the middle and lower classes and not the high-end customers. It does this with an everyday low price model, and is several stores to move closer to the customer. At the operational level, it always planned to increase the supply chain process efficiency to deliver goods at low prices. The Subhiksha business model is a detailed description of the operations of a business (Indiranagar), Bangalore explained. It also describes operations of the distribution center that serves the Indiranagar store apart from the service 58 other stores. The case discusses the challenges of organized retailing in general and specific challenges of inventory and cost management for a discount. It also provides detailed data that can be used for the diagnosis of the supply chain system in Subhiksha.
«Hide

from
Janat Shah,
Rahul Patil
Trilochan Sastry
Source: Indian Institute of Management Bangalore
23 pages.
Release date: 01 May 2010. Prod #: IMB323-PDF-ENG
Subhiksha: Manage Store Operations HBR case solution