(SESSION: 2009-2011)

ASSIGNMENT
ON
“STRATEGY MANAGEMENT”

Submitted to: Submitted by:

Prof. Mahesh Soni Harsha Chotrani(7)
 SELECTED COMPANIES

1. AIRTEL

2. KOUTONS

3. MC DONALDS

4. ICICI Bank

5. BIG BAZZAR
 • Bharti Airtel Limited
• Bharti Airtel is India's largest private sector telecom operator and
India's sixth-largest company by market capitalization.

• India's leading private sector providers of telecommunications

services, delivering mobile, broadband and telephony, and enterprise
services to more than 19.74 million customers.

• Its USP is its service to retain existing customers than just acquiring
new customers in order to increase the market share.

• It does its communication via taglines.

• Bharti has a firm commitment to growth and, through a highly cost-

effective outsourcing business model, aims to differentiate itself in
India's highly competitive communications environment by ensuring
customer delight through personalized customer service .

• Airtel focuses only and solely on two things - customer acquisition &
servicing (retention) and business development/expansion. ALL other
functions - hardware, network management, backend applications
(billing etc), value added services and even telecom infrastructure -
are outsourced.

• Airtel has been not only the fastest growing but the most innovative of
operators. It has realized the importance of having access to the
consumer at all levels, and therefore is going from core mobile to
landline internet, Digital TV (DTH) and even digital cinema (theaters).

• It is basically into Direct Marketing.

Direct
DirectMarketing Mobile Services
Marketing
Voice Services

Satellite Service
 • The Porters five force model and available substitutes of airtel
are:
Cellular services: airtel serves basically in GSM format so the
best suitable substitute is CDMA .
DTH: when we talk about the dth the substitutes possible could
be cable television.

• Airtel Success Mantra : Focus on Core Competencies and Outsource

the rest!

SWOT
STRENGTH WEAKNESS
1. Very focused on telecom, it is one of the Price Competition from BSNL and MTNL.
leading brands in mobile service in India.
2. Leadership in fast growing cellular Untapped rural market
segment.

3. The only Indian operator , other than Outsourcing of Core Systems

VSNL , that has an international submarine
cable.

4. It offers the most expensive roaming Lack of emerging market investment

network. opportunity

5. Its core competencies are Sales &

Promotions

OPPORTUNITIES THREATS
1. Latest technology and Low cost Competition from other cellular and mobile
advantage. operators.

2. Huge market awaiting of rural area. Saturation Point in Basic telephony

service .

3. Bharti Infratel – Cutting Down cost in India centric – Major revenues from India
Rural area
• Koutons

• Koutons Retail India, a specialty discount company,

operates through “Koutons” and “Charlie Outlaw” outlets throughout in
the country.
• It has a Unique positioning targeting huge middle class.
• Koutons Retail has positioned itself as “High Fashion Value for
Money”chain. Its brands Koutons” and “Charlie Outlaw” target the
middle income group, which is expected to constitute the largest
proportion of population by 2025. It offers products for all age groups
and sells the entire range for men’s and kids wear and western wear
for women. As the proportion of working women is rising, the demand
for western wear is expected to increase..
• Its USP is the leading retailer of readymade & fashion wear brand in
the country. i. e.
“ Value for Money and High and Fashion “.

• It has Franchisee driven business model thorugh this growth of stores

can be done quite faster instead of putting up their own funds.
• 365 days discount , its network and Psychological Pricing are its main
strategies.
Business Model :
 SWOT
STRENGTH WEAKNESS
1. Retailing is a “technology- Retail chains are yet to settle down with
intensive" industry. the proper merchandise mix
for the mall outlets.

2. It is technology that will help the
organized retailers to score over the
unorganized retailers.
3. Successful organized retailers
today work closely with their vendors
to predict consumer demand, shorten
lead times, reduce inventory holding
and ultimately save cost.
Since the stand-alone outlets were
established long time back, so they have
stabilized in terms of footfalls &
merchandise mix and thus have a higher
customer loyalty base
Despite high footfalls, the conversion
ratio has been very low in the retail
outlets in a mall as compared to the
standalone counter parts. It is seen that
actual conversions of footfall into sales
for a outlet is approximately 20-25
percent.

4. Competitive advantage through

distribution & information systems in
the retailing industry.
5. There biggest strength is there
target segmentation of consumers
and they are able to do it very
effectively

• High Fashion at Low Price to mass market - the strategy is to put price
matching with other players in market with same fabric and quality to
show that there product is worth of 50$ price put by other players but
 due to there big volumes and there mass segment target market there
are providing goods at discount of 50- 70%to there customers " fashion
at affordable price "
• They hire foreign modals instead of hiring Indian celebrities, which
helps them to show that there product is on international quality .
Moreover it helps them to minimize cost for advertising, which lead to
price elasticity of their product.

OPPORTUNITIES
1. Organised retail is only 4 percent of
the total retailing market in India. It is
estimated to grow at the rate of 27
percent p.a. and reach Rs. 1,37,000
crore by 2010.
THREATS
If the unorganised retailers are put
together, they are parallel to a large
supermarket with little or no over-
heads, a high degree of flexibility in
merchandise, display, prices and
turnover.

2. In India it has been found out that Shopping Culture has not developed
the top 6 cities contribute 66 percent in India as yet. Even now malls are
of the total organised retailing. While just a place to hang around, largely
the metros have already been confined to window-shopping.
exploited, the focus has now been
shifted towards the tier-II cities.
3. India's huge rural population has
caught the eye of the retailers looking
for new areas of growth.

• Porter’s model & its substitute: when we talk of the substitutes the
substitutes for the brand and its products the possible substitutes for
the man category would be tailor, designers. When we talk of the
female section the possible substitutes could be boutiques. The other
substitutes available are unorganized retail sector.
 • MC DONALD’ S

• McDonald's Corporation is the world's largest chain of fast food

restaurants, serving nearly 47 million customers daily through more than
31,000 restaurants in 119 countries worldwide.
• Its USP is Quality, Service ,Cleanliness and Value for money which
focuses on providing customers high quality products in a clear & pleasant
environment with affordable price.
• It has Franchise Business Model – Only 15% of the total number of
restaurants are owned by the Company. The remaining 85% is operated by
franchisees. The company follows a comprehensive framework of training and
monitoring of its franchises to ensure that they adhere to the Quality, Service.

• Cleanliness and Value propositions offered by the company to its

customers.

• Product Consistency – By developing a sophisticated supplier networked

operation and distribution system, the company has been able to achieve
consistent product taste and quality across geographies.

• Act like a retailer and think like a brand – McDonald’s focuses not
only on delivering sales for the immediate present, but also protecting its long
term brand reputation.
 Business Model :-
Second-Tier First-Tier First-Tier Second-Tier
Suppliers Suppliers Consumers Consumers

SWOT
STRENGTH WEAKNESS
1. Large market share Location of outlets are sometimes are not
to closer to storage center so due to
 which it affect on quality

2. Strong brand name, image, and

Focus on middle class income group
position customer with low price quality goods will
enhance the profit margin

3 Strong supply chain & Strong financial

Legal action related to health issue,
position and performance. use of Trans fat & brief oil

4. Affordable price and high quality

Growing health trend among consumer
product & Nutritional information
available on packing

5. Strong global presence & performance

in the global market

OPPORTUNITES THREAT

1. Innovations in the menu Focus by consumer on nutrition and

healthier lifestyle

2.I n 2008 the business directed Environmental pressure

efforts at the breakfast, chicken,
beverage and convenience
categories. For example, hot
specialist coffees not only secure
sales, but also mean that restaurants
get increasing numbers of customer
visits. In 2009 McDonald's saw the full
benefits of a venture into beverages.
3. In today's health conscious societiesCompetitors threatened the market share
the introduction of a healthy hamburger of the company both internationally and
is a great opportunity. domestically.

Focus by consumer on nutrition and

healthier lifestyle

Rising raw material prices

Porters five -force models & its substitutes :there are many substitutes in
the industry. Since there are wide varieties of product that people can choose,
they could either be substituted by mdc burger, beverages dairy products and
other.

• ICICI BANK

• ICICI Bank is a diversified financial services company that provides a

range of banking and financial services to customers, including retail
banking, , venture capital and private equity, investment banking,
broking, and treasury products and services & many others.
• The success of the company will be founded in its unflinching
commitment to 5 core values -- Integrity, Customer First,
Boundary less, Ownership and Passion. Each of the values
describes what the company stands for, the qualities of people and the
way they work.
• The Various segment of ICICI are :-
 • The business model focuses on the untapped potential in the
profitable retail business segments and leveraging its superior delivery
capabilities and lower operating costs in the under-served corporate
banking business.
• Porter’s model & its substitutes: When we considers on the
substitute products, this segment is unattractive because there are
many actual and potential substitutes for the product of ICICI
prudential and all the competitors have almost similar product or
plans, but they mainly differ in the service point of view.
On the rural level the money lenders and at city level other
cooperative banks and the post offices can act as a substitute for the
industry.

SWOT
STRENGTH WEAKNESS
1. Online services High bank service charges compared
to other bank

2. Advanced infrastructure – well Less credit period i.e. up to limited

equipped with advanced technology period

3. Provide 12 hrs. Banking services Rate of interest high as compared to

other banks
4. Late night ATM services

OPPORTUNITES THREAT

1. Bank should also provide Competition by YES,CITI Bank, HDFC,

insurance services HSBC and other banks

2. Bank should provide higher Net services

returns on deposits in
comparison of the present
situation

3. Recruit professionally guided Decentralized management

students

4. Industry will grow as with the No proper facilities to uneducated

development of financial sector customers
of our economy

• BIG BAZAAR

• It’s a Hyper mart Chain of development store in India with 104 out lets
Located in India
• Big Bazaar is not just another hypermarket. It caters to every need of
your family. Where Big Bazaar scores over other stores is its value for
money proposition for the Indian customers.
• At Big Bazaar, you will definitely get the best products at the best
prices - that’s what they guarantee
• Big Bazaar is the destination where you get products available at
prices lower than the MRP, setting a new level of standard in price,
convenience and quality.
• It’s a One Stop Destination where you can find all products of all
varieties.
 • Its USP is – Low Prices, everyday introducing new schemes & offers &
lucky draws & also some extent to Positioning of retail market as for
middle class.
• There Business model is entirely on Local Sourcing & they believe on
constant returns.
• Big Bazaar specifically targets working women and home makers who
are the primary decision makers.

Business Model :
SWOT
 STRENGHT
• High Brand Equity
• EDLP
• Infrastructure
• Product Diversity
• Supply Chain
WEEKNESS
• Falling Revenue/ Sq Ft.
• Unable To Meet Store
Opening Target
• Perception Amongst
Consumers

OPPORTUNITIES THREATS
• Organized Retail • Competitors
• Understanding • Government Policies
Consumer • Unorganized Retail
Preferences • Economic Conditions
• Targeting Area More
Prone To Development
• Global Expansion
• In Store Experience
Improvements

• Porters five force model & its substitutes : Its

Substitute would be Unorganized retail sector as 95%
counts for the unorganized retal sector whereas merely
5 % is to Retail sector so its major substitute would be
Unorganized retail sector.

Thank
You