Professional Documents
Culture Documents
Vis-À-Vis: CULTURE, VALUES As Key Forces in Shaping STRATEGY and Developing Competencies
Vis-À-Vis: CULTURE, VALUES As Key Forces in Shaping STRATEGY and Developing Competencies
CULTURE,VALUES as key forces in shaping STRATEGY and developing COMPETENCIES Paras Deshpande
AGENDA
Look out for differences and similarities in WAL MART and Big Bazaar. Look if strategy was shaped because of Value and necessity.
Appreciate the unique Indian-ness Kishore Biyani has employed in retail chain buisness.
WALMART
Sam Walton started as a specialty store owner of Ben Franklin franchise stores. He was fortyfour when we opened first WalMart in 1962.
EarlyTimes
In the early days of WalMart the emphasis on item promotion helped us to make up for a lot of shortcomings we hadan unsophisticated buying program, a less than ideal merchandise assortment, and practically no backoffice support. Early periods were marked by extensive benchmarking to such a level that managers lived half of the time in competitors stores.
StrategicNotes
I think that misunderstanding worked to our advantage for a long time, and enabled WalMart to fly under everybody's radar until we were too far along to catch. But while the big guys were leapfrogging from large city to large city, they became so spread out that they left huge pockets of business out there for us. Our growth strategy was born out of necessity, but at least we recognized it as a strategy pretty early on. We figured 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
OperationsManagement
Getting an early start on all these systems, building a foundation for our distribution centres development, starting to put data processing into the stores, really saved our bacon later on.
CreatingCulture
WalMart is not a big success merely because we grew up out here in the country, where people are just naturally friendly and therefore make great retail employees. It's true that we have many fine associates from the country, but they have 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 overcome their natural shyness and learn to speak up and help our customers.
Indian Consumer
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.
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.
As retailers, we have not only to acknowledge this change but remain ahead of evolution curve, not to mention be an agent of change.
Modus Operandi
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 out of 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
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 format scales up.
New Formats
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. KBs Wholesale Market.
Allied ventures
Local Supplies provide flexibility. Contracts with large firms provides efficiency.
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
References
IT Happened In India : Kishore Biyani. Made In America : Sam Walton. Flowingdata.com . Google Image Search.
TAG CLOUD