INTRODUCTION

PRODUCT LINE
• Aditya Birla Fashion retail is established in 1996
• Parent company is Aditya Birla group • Jute products
• PVC floor covering
• Kumar Mangalam Birla is CEO • Auto trims (jute felt-
• Headquarter in Mumbai based car interiors
• Aluminium products
• Total revenue is 7181 crore • Textiles
• ABFRL's subsidiaries — Pantaloons Fashion and Retail (PFRL) and • Ready made
garments
Madura Fashion & Lifestyle (MFL) • Life and general
• It is India's largest fashion network with 11000 sale points which insurance products
• Financial services
includes • Telecommunication
1. 2,500 exclusive ABFRL brand outlets across 750+ cities and towns, s
• BPO and software
2. 4,900+ multi-brand outlets services
• Exports
3. 4000+ department stores across the country
• Total number of employees are 19000
BRANDS

C
MISSION & VISION

MISSION
“To deliver value to our customer,
shareholders employees and
society at large”

VISION
To be a premium global
conglomerate with a clear focus
on each business.
 MISSION EVALUATION
Aditya Birla
“To deliver value to our customer, shareholders employees and society at large”

Shopper’s Stop
“position itself as a family store, delivering a complete shopping experience”

customer Product Market Technology Survival Philosophy Self Public Employee

concept image

Aditya
Birla

Shopper’
s stop
REVISED MISSION

To deliver diversified products to our customers and in

still, confidence into our stakeholders and employees
with continuous upgradation of technology, according
to the dynamic market environment, as believing in
quality we will keep growing by embracing our values
EXTERNAL
AUDITING
 Political & legal
• Increase in FDI (1.42 billion dollar)(threat -
high)
• GST –(Opportunity - medium)
• New consumer law –(Opportunity medium for
offline retail)
Technological PEST
• Omni channel(opportunity-medium)
• IOT(opportunity-medium)
• Social media(opportunity-medium)
• After Sales Services(opportunity-high)
Source of information :- https://www.ibef.org/industry/retail-india.aspx
Economical
• Increase Per capita Income
• Fashion & Retail Growth Rate-
16%(opportunity-high)
• Online Growth Rate -30% (opportunity-
high for online retail)
• 3rd largest consumer market(opportunity-
medium)
• 5th largest preferable destination for
Retail(opportunity-medium)
Social
• Trend(opportunity-medium)
• Westernisation(opportunity-high)
• Lifestyle change(opportunity-medium)
• Level of Education(opportunity-medium)
PORTER’S 5 FORCE MODEL
Potential Entrants

Patanjali & Jio retail

Supplier Power (Low) Buyer Power (High)

Industry Competitors
Marks & Spencer Rivalry (High) Professionals, Millaniors,
Myers , Rustan's Kids and Housewifes
Future Group, Shopper’s
Stop, Avenue

Substitute products

other fabric clothes, other

metal accessories
 EXTERNAL FACTOR EVALUATION
OPPOTUNITIES WEIGHT RATING WEIGHTED SCORE
Growing Retail market by 0.23 4 0.92
16 %
3rd largest consumer 0.11 3 0.33
market
5th largest preferable 0.09 3 0.27
destination
Trend 0.08 2 0.16
C
Millennials 0.10 3 0.30
THREATS WEIGHT RATING WEIGHTED SCORE
Recession 0.07 2 0.14

Highly competitive 0.15 2 0.30

market
Online Retail is threat for 0.04 2 0.08
offline Retail
New consumer law in e- 0.13 2 0.26
commerce
 COMPETITIVE PROFILE MATRIX
Aditya
Critical Factors Aditya Birla Shopper’s Stop Future Group
weight Rating Score Rating Score Rating Score

Marketing 0.20 3 0.60 4 0.80 3 0.60

Brand 0.20 3 0.60 4 0.80 3 0.60

Reputation
Location 0.20 4 0.80 2 0.40 4 0.80

Product 0.15 4 0.60 4 0.60 3 0.45

Quality
Customer 0.10 4 0.40 3 0.30 3 0.30
Services
Diversification 0.15 4 0.60 3 0.45 3 0.45

TOTAL Score 1.00 3.60 3.35 3.15

INTERNAL
AUDITING
 VRIN FRAMEWORK
PHYSICAL RESOURCES FINANCIAL RESOURCES

• 2,500 exclusive ABFRL brand outlets across • Total revenue is 7181 crore
750+ cities and towns • Adjusted net profit is 191 crore
• 4,900+ multi-brand outlets, • Net fixed assets 696 crore
• 4000+ department stores across the country • Net working capital 509 crore

TANGIBLE
TECHNOLOGICAL RESOURCES
RESOURCES ORGANIZATIONAL RESOURCES
• Brand reputation
• Omni channel
• Organizational excellence
• IOT
C • Store experience
C
• Brand building
• Product design
 VRIN FRAMEWORK
HUMAN ASSETS & INTLACTUAL BRAND IMAGE & REPUTATION ASSETS
• The Company won the Best Customer
• CEO-Kumar Mangalam Birla Experience Award in 2017 by Terragni
• MD-Ashish Dikshti, Consulting, India
• CFO-Jagdish Bajaj • Peter England won the Best
• Total Employees 19000 Performing Brand in Mens Formal
/Casual Wear at The Flipkart Fashion
Conclave 2017
INTANGIBLE
COMPANY CULTURE
RESOURCES RELATIONSHIPS
• Company follows performance based
incentive structure • 4,900+ multi-brand outlets,
• Company makes succession planning foe • 4000+ department stores
employees benefit across the country
• Organise retail Olympics for team building • Acquisition of various
• Job rotation for overall experience of foreign brand
employees
 VRIN FRAMEWORK
TANGIBLE VALUABLE RARE IMITABLE NON
SUBSTITUABLE
PHYSICAL RESOURCES YES NO YES YES

FINANCIAL RESOURCES YES NO YES YES

ORGABIZATIONAL YES NO NO YES

RESOURCES
TECHNOLOGICAL YES NO YES NO
RESOURCES
INTANGIBLE

HUMAN RESOURCES YES NO YES NO

BRAND IMAGE YES NO NO YES

RELATIONSHIP YES NO YES YES

COMPANY CULTURE YES NO YES YES

VCA FRAMEWORK
 VCA FRAMEWORK
FIRM Company’s all stores and facilities are modern and upgraded
INFRASTRUCTURE
HUMANRESOURCES CEO-Kumar Mangalam Birla, MD-Ashish Dikshti, CFO-Jagdish Bajaj, Total Employees-
19000

TECHNOLOGY Omni channel and augmented reality

PROCUREMENT Company has well established procurement for its operations

INBOUND LOGISTIC Suppliers of the company like Marks & Spencer, Myers , Rustan's

OUTBOUND 2,500 exclusive ABFRL brand outlets across 750+ cities and towns, 4,900+ multi-
LOGISTIC brand outlets, 4000+ department stores across the country

OPERATIONS Company’s distribution channel and all activities of stores

MARKETING & SALES Company uses various medium for marketing like YouTube, social media, print
media etc
SERVICE Company provides best services like store service and post sale service
 INTERNAL FACTOR EVALUATION

Weight Rating Weighted Score

Strengths
0.10 3 0.30
Strong Free Cash Flow.
Strong distribution network. 0.25 4 1.0

High level of customer 0.25 4 1.0

satisfaction.
Strong Brand Portfolio. 0.15 3 0.45

Weaknesses
Cost 0.10 2 0.20

Inadequate presence in 0.15 2 0.30

fast growing segments
TOTAL 2.25
 SWOT
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• Strong distribution • Increase Per capita • increase in FDI (1.42

• Cost
network Income billion dollar
• Inadequate
• Brand reputation • Fashion & Retail • Recession is another
presence in
• Financial resources Growth Rate- 16% threat
fast growing
• Very good and • Competitive market
segments
effective company • Omni channel
culture • GST
• 3rd largest consumer
market
• 5th largest preferable
destination for Retail
BALANCE SCORE CARD
OBJECTIVES MEASURES TARGATES INITIATIVES

FINANCIAL Financial growth by nn cost management revenue Rs manufacturing

Increase shareholders wealth Financial ratios 20.9 billion plant in
Increase net profit margin Rayagda

CUSTOMER Customer Satisfaction Customers return & 300 new Omini channel
After sale services retain complain stores in
customers Customer FY19
Market penetration satisfaction survey
Distribution
channel
INTERNAL 0 severity
BUSINESS Reduce number of defects Innovation, R & D level 5
PROCESS Reduce number of rework Training to incidents at
employees workplace

LEARNING Increase new apparel design Provide better manufactu

AND Employee turn over training to ring plant
GROWTH employees
TYPES OF STRATEGIES
CORPORATE STRATEGY
INTEGRATION
• ABFR uses forward integration because it has opened its
own exclusive stores across 750 cities
• It also uses horizontal integration for example :-
 ABFR acquired Forever 21 in 2016 to enter in women’s
wear C
 It has acquired Madura fashion and retail in 2012
CORPORATE STRATEGY
MARKET PENETRATION
• It always comes up with
discounts in the existing
markets
• It provides good margin to
retailers
INTENSIVE
PRODUCT DEVLOPMENT DIVERSIFICATION
• It alwaysCcomes • Diversification it always
with new trends of comes with new products
fashion
• It has diversified target
audience like
Professionals, millennials,
kids etc
• Van Heusen innerwear,
liangewear and
leisurewear for men
BUSINESS STRATEGY

FOCUS DIFFERENTIATION

• It should focus
• It should focus on mass on brand value
market
• It should also try
• It should target different to position itself
markets with different to deliver best
products value
 7S
STRUCTURE STRATEGY SYSTEMS
• Forward integration • With new
• With the
• Horizontal integration systems. It
backward
• Market penetration will be
integration
• Product development more
structure will
• Diversification efficient
change
• Focus
• Differentiation
STYLE
Leadership style is
democratic.
SKILL STAFF
• Company should Total employee
focus on skill of SHARED VISSION strength is 19000
employees. Become global
• Job rotation for skill conglomerate
enhancement
SUGGESTIONS

• Company should follow backword integration

because cost is high of the company

• Company should increase advertisement on

social media

• Company should also increase you tube for

advertisement

• Augmented reality will also help in marketing

• They should use transforming leadership in the

era of millennials
ADITI KUMARI
DEEPAK BUDDHRAJA
JATIN MADAN
RITIKA MAYANK