Big Bazaar Strategy
Understanding Strategic Management
FUTURE RETAIL
SUBMITTED BY:
CONTENTS
ABSTRACT
INTRODUCTION
EXTERNAL ENVIROMENT ANALYSIS
• PEST analysis
• Industry Analysis (Porter Five Five Model)
INTERNAL ENVIRONMENT ANALYSIS
STRATEGY ANALYSIS
CONCLUSION AND RECOMMENDATIONS
REFERENCES
ABSTRACT
This assignment tried to understand the strategic analysis of Future Retail Limited. The company operates different retail chains including Big Bazaar, a hypermarket that offers fashion and wide range of general commodities. With an innovative development strategy displeasured with broad strategic plan, Future Retail is the only cleanly participated India based firm balanced to direct India’s consumerism with sustainable value creation. The company
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They are: Threat of new firm in the market - Indian retail industry there presents a high threat of big players like Aditya Birla Group, Reliance Fresh etc. in retail market itself is in a growing phase. Limited barriers to entry exist. Government rule on Foreign Direct Investment in India can be seen as a barrier to new entrants. The incapability to construct economies of scale, huge capital investment and high distribution costs are other barriers with respect to Future Retail.
Threat of substitutes – The existence of substitute items in Indian retail sector can lower the uniqueness and turnover for the reason that they bound price heights. The local brands made cheaper products. Future retail supplies its brands, such as Pantaloon, DJ&G, etc. But their key rivals provide a various other substitute products for lower rate.
Suppliers bargaining power – The product cost obtainable to the retailer for selling to the end customer is vital for retailers like Future Group, while it take part in the real revenue. Suppose suppliers have high power of bargaining over Future Retail, this sector is fewer attractive. The important assessments from the supplier, for example price hike, delay, etc can put difficulty on the retail
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Intensity of Rivalry – The tight competition among big players in an industry depends on the structure of competition – for example, competition is more strong where there are many small or equally sized competitors like Aditya Birla Group, Bharti Wal-mart, Reliance Retail, Vishal Megamart etc.. The structure of industry costs, the degree of differentiation and the switching costs determine the intensity of rivalry in any industry. The rivalry between the present big players in the Indian market is not very high as there are few players in the
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