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  • Subhiksha: Rise & Fall

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    Meetu Rawat
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    Subhiksha was a retail chain founded in 1997 in Chennai, India that grew to 1600 outlets across the country but then suddenly failed. It focused on lower and middle class customers with stores located off main roads and offering lower prices, variety, customer service policies. However, its rapid aggressive expansion without sufficient funds, difficulty handling a diverse portfolio, financial crisis with supplier dues and wages outstanding, strong bargaining power from suppliers due to long credit periods, and tough price competition led to customer dissatisfaction from inconsistent supplies and the company's failure.

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    Subhiksha

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    Subhiksha was a retail chain founded in 1997 in Chennai, India that grew to 1600 outlets across the country but then suddenly failed. It focused on lower and middle class customers with stores located off main roads and offering lower prices, variety, customer service policies. However, its rapid aggressive expansion without sufficient funds, difficulty handling a diverse portfolio, financial crisis with supplier dues and wages outstanding, strong bargaining power from suppliers due to long credit periods, and tough price competition led to customer dissatisfaction from inconsistent supplies and the company's failure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    22 views6 pages

    Subhiksha: Rise & Fall

    Uploaded by

    Meetu Rawat
    Subhiksha was a retail chain founded in 1997 in Chennai, India that grew to 1600 outlets across the country but then suddenly failed. It focused on lower and middle class customers with stores located off main roads and offering lower prices, variety, customer service policies. However, its rapid aggressive expansion without sufficient funds, difficulty handling a diverse portfolio, financial crisis with supplier dues and wages outstanding, strong bargaining power from suppliers due to long credit periods, and tough price competition led to customer dissatisfaction from inconsistent supplies and the company's failure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Subhiksha: Rise & Fall

    - Mamta Rawat

    General Introduction
    Chennai based largest retail chain in India founded in 1997 by R Subramanian. Having 1600 outlets all over India. Product portfolio: Supermarket, fruits & vegetables, Telecom & Pharmacy.

    Business Strategy
    Focus on lower & upper middle class. Location of stores: not in main roads. Lower prices & Great savings. Wide variety of goods. Guaranteed delivery. Simple return policy. Customer support.

    Reason for sudden rise


    Business Strategy

    Reasons for failure


    Aggressiveness: Rapid expansion of stores without sufficient funds. Diffused focus: Could not handle diversity Financial Crisis: Ads dues, outstanding wages & rent. Suppliers Bargaining power: Long credit periods. Tough competition: with kirana stores (the only USP was discount) Customer Dissatisfaction: Inconsistency in supply due to credit defaults.

    Thank You

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