walmart & bigbazaar
TRANSCRIPT
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 1/30
vis-à-vis
CULTURE,VALUES as key forces in shaping STRATEGY
and developing
COMPETENCIES …
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 2/30
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 3/30
WALMART• Sam Walton started as a
specialty store owner of Ben
Franklin franchise stores.
• He was forty‐four when weopened first Wal‐Mart in
1962.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 4/30
Opening the first WalMart
•
We really had only two choices left: stay in thevariety store business; or open a discount store.
•Many of our best opportunities
were created out of necessity.
The things that we were forced
to learn and do, because we
started out in these remote,small communities.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 5/30
EarlyTimes
• In the early days of Wal‐Mart the emphasis on item
promotion helped us to make up for a lot of
shortcomings we had—an unsophisticated buying
program, a less than ideal merchandise assortment,and practically no back‐office support.
• Early periods were marked by extensive benchmarking
to such a level that managers lived half of the time in
competitors stores.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 6/30
StrategicNotes
• I think that misunderstanding worked to our advantagefor a long time, and enabled Wal‐Mart to fly under
everybody's radar until we were too far along to catch.
• But while the big guys were leapfrogging from largecity to large city, they became so spread out that theyleft huge pockets of business out there for us.
• Our growth strategy was born out of necessity, but atleast we recognized it as a strategy pretty early on. Wefigured we had to build our stores so that our
distribution centers, or warehouses, could take care of them, but also so those stores could be controlled
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 7/30
OperationsManagement
Getting an early start on all
these systems, building a
foundation for our
distribution centresdevelopment, starting to put
data processing into the
stores, really saved our bacon
later on.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 8/30
CreatingCulture
• Wal‐Mart is not a big success merely because we
grew up out here in the country, where peopleare just naturally friendly and therefore make
great retail employees. It's true that we havemany fine associates from the country, but theyhave had to enter our culture and learn retailing
just like anybody else, and we have spent a good
deal of time teaching many of them to overcometheir natural shyness and learn to speak up andhelp our customers.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 9/30
NEXT THE INDIAN CONTEXT
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 10/30
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 11/30
•
Born in a middle class tradingfamily, Kishore Biyani startedhis career selling stone washfabric as trader.
• His objective is to capture
every rupee in the wallet of Indian consumer.
• He is concentrating not just onretail but his ambitions span
over full consumer space.• With the launch of Pantaloons,
Big Bazaar, Food Bazaar,Central he has redefined theretailing business in India
Raja of Indian Retail
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 12/30
• There are three kinds of entrepreneurs - Creators,preservers and destroyers.
• He considers himself as both creator and destroyer at thesame time. Preserving the status-quo has never been the
cup of his tea.
• He strongly believes none of his business will ever cater tothe elitist class.
• In the current era of knowledge economy Ideas will be the
greatest assets of a company. Organizations that allowinsights and information to flow freely will be the ones tocome out as winners.
Kishore Biyani KB Views, Value and Vision.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 13/30
• The changing demographic profiles, globalization,increasing income levels, urbanization,technology, and a free flow of ideas from within
and outside is bringing about dramatic shift inconsumer tastes and preferences.
• Underlying these trends there are towundercurrents that are sweeping through young
India – CONFIDENCE & CHANGE.• These two have the potential to tweak an
unprecedented era of CONSUMPTION.
Indian Consumer and 3C’s
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 14/30
• The younger India is expected to embrce the
values of family and continue and live the Indian
way.
• Therefore it is imperative to attract and deliver
the consumer understanding and interpreting
the ‘Indian-ness’ quotient of the consumer.
Indian Consumer
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 15/30
Consuming class [ 14% ] – High disposable income
Serving class [ 50%] – Drivers, cleaners etc. They
serve the consuming class.
Struggling Class – Live a hand to mouth existence.
•Also the consumer class and serving class never shop at the same
stores.
•Serving class feels comfortable in crowds and chaos and hesitates
even to enter the specialty stores.
Indian Consumer Space
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 16/30
• By 2010, almost half of our citizens will be workingage group of twenty to fifty four years . A youthful,
exuberant generation, bred on success will not only
drive productivity but also set a spiraling effect on
consumption and income generation
• As retailers, we have not only to acknowledge this
change but remain ahead of evolution curve, not tomention be an agent of change.
Indian Consumer Space continued
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 17/30
• Indian consumer needs indigenous solutions to her
shopping needs –that give her best value for money
in an environment she is comfortable with..
While designing our Big Bazaarthe core idea was to merge the
look and feel of ‘mandis’ with
modern retail’s features like
quality, choice and convenience.
Catering the Indian Consumer
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 18/30
• The Indian consumer has her
peculiar preferences when it
comes to staple food. She
would like to touch, feel the
grains for herself before she
would buy them. It is hence
at Food Bazaar staples aresold loose.
Catering the Indian Consumer
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 19/30
Catering the Indian Consumer
• Abroad hypermarkets are typically designed on box
type formats, shoppers abroad usually shop aloneand it isn't considered an exciting activity.
• For Indians shopping is entertainment, they come
with entire family and move in groups.
The U shaped sections
proved to be more
appropriate than the long
aisles of western
hypermarket.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 20/30
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 21/30
• Retail stores need to drive sales and not be sales
driven.
• KB is of a strong philosophy that the retailers job is to
create demand and the supply chain will follow outof necessity.
• By focusing on customers we have managed to keep
our business simple and agile.
• Local sourcing has been adopted as centralized
processes may not be viable of a diverse country as
India.
Modus Operandi
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 22/30
• Although because of the value proposition and
scarcity of organized retail might have given Big
Bazaar the luxury to sideline operations, it is
expected to take the center stage as the formatscales up.
Modus Operandi
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 23/30
• Central
A mall with virtually no walls to
separate different store. The
brands pay a percentage of their
sale to proprietor and the owner
gets to decide which brands to
keep.
• Specialty retail stores.• KB’s Wholesale Market.
New Formats
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 24/30
Allied ventures
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 25/30
• Buyer’s switching
cost is low
• Firm can adjust
prices quickly• Price elasticity of
demand demand
Five Force Analysis : Competitors
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 26/30
• FDI
• Big Business houses
Five Force Analysis : Entrants
• Use strong cash flowsfrom other sectors.
• Have network capabilities.
• Sourcing capabilities.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 27/30
• Local Supplies
provide flexibility.
•
Contracts with largefirms provides
efficiency.
Five Force Analysis : Suppliers
•Locally sourced suppliers.
•Big companies like P&G &
HUL.
•Home grown brands likeD&G John Miller.
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 28/30
• Low switching cost
• Transportation cost
• Because of wider product offering the customer will not
have options in every segment.
Five Force Analysis : Customers
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 29/30
SWOT Analysis
STRENGHT
• High Brand Equity
• Every Day Low price [ EDLP ]
• Real estate and Infrastructure
•Understanding Consumer
Preferences
WEEKNESS
• Falling Revenue/ Sq Ft.
• Unable To Meet Store Opening
Target
• Perception Amongst Consumers
OPPORTUNITIES
•Targeting Area More Prone To
Development•In Store Experience Improvements
•New formats and consumption
space
THREATS
• Competitors domestic and foreign
• Economic Conditions
8/4/2019 walmart & bigbazaar
http://slidepdf.com/reader/full/walmart-bigbazaar 30/30
• IT Happened In India : Kishore Biyani.
• Made In America : Sam Walton.
•
Flowingdata.com .• Google Image Search.
References