11/23/2020 Competitive Analysis of Bhatbhateni Super Market - Case Study

Browse Essays / Business / Competitive Analysis of...

Competitive Analysis of Bhatbhateni Super Market

Essay by Uttam Rai • April 20, 2018 • Case Study • 1,592 Words (7 Pages) • 1,360 Views

Essay Preview: Competitive Analysis of Bhatbhateni Super Market

Page 1 of 7

Introduction
BhatBhateni Super Market (BBSM) began from humble beginnings of a small cold store in
1984. Mr. Min Bahadur Gurung and his wife started this small store with the hope to run their
normal life with ease. This small dream has now become the biggest retail chain in Nepal with over
fourteen leading supermarket and departmental store in many big cities in Nepal. They cover over
120 sq. feet of real-estate with more than 60,000 customer coming in every day.

The chain of super store began from Maharajgunj which followed a rapid expansion in
Kathmandu valley. Now, BBSM has stores in Koteshwor, Anamnagar, Pulchowk, Balaju, Kalanki
and many more. They even took over the United World Trade Center in Tripureshwor which is the
testament of their success over the years.

Over 3,500 staffs work in BBSM with products of varieties providing the customers with
smooth one stop shopping. It has been said that a person can get all the essentials needed under
one roof of BBSM. Their product ranges from the Fast Moving Consumer Goods (FMCG) to
electronics, fashion and even jewelers providing gold and silver ornaments for the customers
visiting the premises.

BBSM is the market leader in terms of retail outlets in Nepal. Kathmandu might have many
small stores along with big outlets but none come close to the success that BBSM has garnered
over the years. They are simply incapable to match the might of an empire called BhatBhateni
developed by a humble Mr. Min Bahadur Gurung.

Competitive Analysis of Bhatbhateni

BBSM operates in a market that it created in itself. Before BBSM, Nepalese market had never
seen of a superstore where people can go and get all the items they required at prices that were
attractive to most of the population. This was the reason why people were gravitated towards
BBSM and made it a success that we see today. So, here for the analysis of the market that BBSM
work in Porter’s Five Forces Model is used.

https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-Market/81338.html 1/5
11/23/2020 Competitive Analysis of Bhatbhateni Super Market - Case Study

Porter’s Five Forces Competitive Model

Threat of New Entrant

In present, the retail market in Nepal is booming. Due to the Nepalese culture of copying,
everyone wants to adopt the model that BBSM used to get huge success. In every nook and corner
of Kathmandu, small shop this kind can be found. The entry is simple because there are no
regulations stopping them or putting a limit to how small or big the retail can be if just registered
to Private Business, Partnership or Limited Company Acts prevalent in Nepal. In terms of big new
entrants, the market is also open for them to come in, the problem only arising in building a
brand. There are very flexible FDI codes for foreign chains to come in, there is no restriction on
opening any type of retail chain. The only hassle being in case where liquor comes to play. The cost
of establishing big chains might be hampered by the rising real-estate cost but the cost of running
is moderate to low, if they can avoid Worker’s Union. So, overall Threat of New Entrant is high.

Rivalry among existing firms

Retail industry is driven by competition in Nepal. BBSM might be the big fish in the pond but
smaller and medium scaled retail outlets are providing the competition even with their limited
resources. Bigger retail outlets in Saleways, Big Mart and KK Mart are also good players in this
market. They may not have the scale but still are able to draw enough customers away from BBSM.
The smaller retail stores are the main throne in BBSM’s market. They are everywhere and due to
the locational advantage they have over BBSM in many places, they tend to divert many possible
customers away from BBSM. It can be analyzed that there is high rivalry between retail outlets.

Bargaining Power of Buyer

Retail Industry mostly does not have huge bargaining power of customers to tend to. (Report
Linker, 2016)This is derived from the fact that their potential market and actual market is large
and cannot sway these outlets. Everything in BBSM has a fixed price and cannot be bargained at.
Due to huge amount of people coming to these stores, they do not need to worry about few
switching away from them. BBSM also has an advantage of variety which small shops do not have.
So, people wanting to shop at one stop are obliged to pay the fixed rates which means no
bargaining power at all. An individual cannot buy enough at once to make a fuss about bargaining.
So, Bargaining Power of Buyer is low.

Bargaining Power of Supplier

BBSM has the luxury of many suppliers trying to get the coveted shelf space. These suppliers
believe that making it in the shelf of BBSM could boost their sales many folds. There are also large
number of supplier which BBSM can dip into to get their products. The only drawback when it
comes to suppliers come from the established brands with massive following in the market. These
are Coca-Cola, Nestle, Gillette and so on which people will surely buy. They have the sway on the
best possible space in BBSM. But due to the bulk purchase of BBSM, they cannot take away the
power of bargaining from BBSM making them a lot weaker. This means an overall low Bargaining
Power of the Suppliers.

Threat of Substitute Products or Services

https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-Market/81338.html 2/5
11/23/2020 Competitive Analysis of Bhatbhateni Super Market - Case Study

Many goods available in BBSM has easily available substitutes because of its fast moving
nature. Large number of FMCG (Fast Moving Consumer Goods) dominate shelves in BBSM and
everyone has an alternative of sorts in the stores that is not BBSM. Threat is high in direct terms of
the products being sold but the threat decreases when we look at the services. No physical retail
outlet can boast the variety that BBSM has. They have all the essential under one roof which allows
for people to shop once for all of their requirements. This could be matched by E-Commerce sites
but they are still in nascent phase with many requisite missing for it to have a go at BBSM. Overall,
the Threat of Substitute products or services is moderate.

...

...

Continue for 6 more pages »

Download as:   TXT (9.1 Kb)   PDF (78.5 Kb)   DOCX (13.3 Kb)  

Read Full Essay Save Only available on ReviewEssays.com

Citation Generator APA MLA MLA 7 CHICAGO

(2018, 04). Competitive Analysis of Bhatbhateni Super Market. ReviewEssays.com. Retrieved 04,
2018, from https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-
Market/81338.html

Similar Essays

Sony Competitive Analysis Zara's Business Model and Competitive

Competitive Analysis Sony Financial Status and History
Revenue growth same as industry average Likelihood of Entry
or Retaliation The first digital cameras for consumer use
655 Words  |  3 Pages
Analysis
Question 1 - Zara's Business Model and Competitive Analysis
Zara, the most profitable brand of Inditex SA, the Spanish
clothing retail group, opened its first
10,303 Words  |  42 Pages

The Pest Analysis for Pc Market in Uk Netflix Competitive Analysis

The PEST Analysis for PC market in UK Changes in interest Competitive Analysis Blockbuster Inc. and Movie Gallery are
rates, exchange rates, technology and the law are all external currently the two strongest competitors in the market, and
https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-Market/81338.html 3/5
11/23/2020 Competitive Analysis of Bhatbhateni Super Market - Case Study

factors, which can affect therefore pose the biggest threats to Netflix. Amazon,
1,921 Words  |  8 Pages 509 Words  |  3 Pages

Analysis of Super Size Me Outsourcing: Staying Competitive in the

"Analysis of Super Size Me" Morgan Spurlock decided to make
this documentary to investigate the fast food companies, and
the effects of certain fast
804 Words  |  4 Pages
Global Market
Abstract As more companies expand their business globally,
they are seeing more opportunities and an increased set of
threats to the market. Threats like war,
1,723 Words  |  7 Pages

Solarcity-Current Market Conditions Competitive Analysis and Marketing

Competitive Analysis
SolarCity-Current Market Conditions Competitive Analysis
Team A ECO/365 10/8/2014 David Faiella SolarCity-Current
Market Conditions Competitive Analysis Completing a
competitive analysis of any new product or
1,536 Words  |  7 Pages
Strategy of Mbl Student Credit Card
Running Head: COMPETITIVE ANALYSIS AND MARKETING
STRATEGY OF MBL STUDENT CREDIT CARD Competitive
Analysis and Marketing strategy of MBL Student Credit Card
SMARIKA PAUDEL BUS
1,944 Words  |  8 Pages

Similar Topics

Economic Analysis Market Testing

Analysis Marketing Plan Nike Michael Strategic Analysis Bmw

Gene Forrester Character Analysis Analysis Death You Plagerising Son

High Quality Term Papers and Essays

Join 352,000+ Other Members
Get Better Grades

Sign up

© 2010–2020 ReviewEssays.com

https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-Market/81338.html 4/5
11/23/2020 Competitive Analysis of Bhatbhateni Super Market - Case Study

Browse Essays Site Map

Join now! Help Privacy Policy

Login Support Terms of Service

Facebook

https://www.reviewessays.com/essay/Competitive-Analysis-of-Bhatbhateni-Super-Market/81338.html 5/5