STRATEGIC MANAGEMENT

INDUSTRY: RETAIL
COMPANY: RELIANCE RETAIL
Group Members
Shrushti Shete 21106B1024 Surabhi Hindlekar 21106B1031

Niraj Jadhav 21106B1025 Pawankumar Varma 21106B1032

Priya Chaudhari 21106B1033
Anmay Shetty 21106B1026
Vaibhav Mhatre 21106B1034
Sandeep Kurtadkar 21106B1029
Baqer Shaikh 21106B1038
Megha Panigrahi 21106B1030 Sharvi Patil 21106B1043
 INTRODUCTION

 Reliance Retail has been ranked as the

fastest growing retailer in the world.

 It is ranked 56th in the list of Top Global

Retailers and is the only Indian Retailer to
feature in the Top 100.

 It is the largest and the most profitable

retailer in India with the widest reach.
 COMPETITION

Broad Competition
Direct Competition
Indirect Competition
 Hawkers
 D Mart  Amazon  Restaurants
 Apna Bazaar  Big Basket  Shopping
 V Mart  Kirana Store
 Star Bazaar
 PESTLE ANALYSIS OF RELIANCE RETAIL

 POLITICAL :
 Political instability
 Changes in government laws(contract, taxation)
 
 ECONOMIC :
 Inflation rate
 High interest rates
 
 SOCIAL :
 Spending power of consumer
 Society conscious
 TECHNOLOGICAL :
 Technology is ever changing. The involvement of technology is effective in every business of
Reliance Industries limited. Be it retail and the improved ERP functioning, advance social media
marketing or be it advancements in telecom sector like 5G network and fibre net broadband. The
operations and supply chain are getting disrupted with advanced technology.
  LEGAL :
 There are strict laws that govern Reliance Industries’ business in every field. Labour laws which
protect basic rights of every labour including minimum wages are to be aligned with the
company’s legal framework. Environment protection laws for the manufacturing units and their
industrial waste disposal standards govern their overall activity.
 ENVIRONMENTAL :
 Reliance Industries Limited has diverse business. But each of those businesses, be it petroleum,
fashion retail outlet, agricultural products, foot ware have to be monitored in terms of its
environmental factors. The emissions that are given out into the air has to be regulated under the
norms prescribed by the government.
 PORTER'S FIVE FORCES
MODEL

Reliance Retail
Low BARGAINING POWER OF Moderate THREAT OF NEW ENTRANTS:
SUPPLIERS: Barriers to entry
• Large Number and size of suppliers THREAT OF • Economies of scale (benefits of large scale)
NEW
•Ununiqueness of each supplier's ENTRANTS • Low Brand loyalty will remove bottlenecks
product • High Capital requirements (47265 cr- RR)
•Company's ability to substitute is • Relaxed Government policies
lesser than their need to sale goods • Low Switching costs
RIVALRY
BARGAINING
AMONG BARGAINING
POWER OF
SUPPLIERS
EXISTING POWER OF
BUYERS
COMPETITOR
S
High BARGAINING POWER OF BUYERS:
High THREAT OF SUBSTITUTE • Number of customers per year 2 million
PRODUCTS: & Size of each customer order on an
THREAT OF
•Large Number of substitute products SUBSTITUTE average is rs.3500
PRODUCTS
available •Low Differences between Competitors
Buyer propensity to get options is high products
and respected to price & quality • Price sensitivity
•Relative price performance of substitute • Buyer's ability to substitute
• Negligible Switching costs to customers • Buyer's information availability is high
due to internet
• No Switching costs
 RIVALRY AMONG EXISTING COMPETITORS
 Large Number of competitors- D-mart, V-mart,
shopper’s stop, big basket, amazon, future group,
Tesco ; others –multiple.

 Competitive advantage gain by competitors like

D-mart(makes difference by lesser price)

 Industry concentration –big competitors are just

4-5.

 Industry growth is high

 Quality differences are less

 Low Brand loyalty

 No Barriers to exit ; eg. big bazar  Overall industry is attractive ,

sustainable and growing
 Low Switching costs to buyers
 BCG MATRIX

 The Boston Consulting group's product portfolio

matrix (BCG matrix) is designed to help with long-term strategic
planning.
 It provides a graphic representation for an organization to
examine different businesses in it’s portfolio on the basis of their
related market share and industry growth rates.

Model : Resource allocation model

Application : Strategic business units
Decision : In which SBU should you invest, divest, harvest, milk.
  BCG MATRIX
MARKET SHARE

HIGH LOW

Invest STARS Invest QUESTION MARKS

CONSUMER ELECTRONICS FASHION AND LIFESTYLE

HIGH
• Reliance digital
• Reliance Trend
MARKET
GROWTH
Milk CASH COWS Harvest DOGS
GROCERY 7-ELEVEN
LOW • Reliance fresh
• Convenience Store
 GENERAL ELECTRIC OR G MCKINSEY MATRIX

 The GE / McKinsey matrix is a model used to assess the strength of a strategic business
unit (SBU) of a corporation.

 It analyses market attractiveness and competitive strength to determine the overall

strength of an SBU.

 The GE Matrix is plotted in a two-dimensional, 3 x 3 grid.

 Model- Resource Allocation Model

 Applicability- Product portfolio, SBU(Strategic Business Unit)

 Decision- Harvest, Divest, Milk, Invest

Company Market Attractiveness Company's Strength
Size Growth Size Growth
Reliance XL M
Fresh
Trends XL L
Ajio XXL XL
Hamleys XL L
Reliance L S
Jewels
Reliance XL L
Smart
Jiostore XXL L
Reliance XXXL XL
Digital
Reliance L L
malls
Footwear XL M
 COMPANY STRENGTH
S M W

Ajio Trend
H Digita s
l

MARKET ATTRACTIVENESS
1 2 3

Jiostore
Hamleys
Fresh
M

Footwear
Smart

4 5 6

Mall

Jewels
L

7 8 9
DECISION
Reliance Fresh- Harvest
Trends- Invest
Ajio- Invest
Hamleys- Harvest
Reliance Jewels- Divest
Reliance Smart- Harvest
Jiostore- Harvest
Reliance Digital- Invest
Reliance malls- Milk
Footwear- Milk
 PORTER’S GENERIC MODEL
Cost Uniqueness

Cost Leadership Differentiation

Broad

Reliance Smart
Reliance Digital AJIO

Stuck in middle
Differentiation focus
Cost focus
Narrow

Trends
 INTEGRATION
Integration

Vertical Horizontal

Forward Backward
 VERTICAL INTEGRATION “ FROM FARM TO FORK”

Farmers

Backward Integration
Reliance Mandi’s

Reliance Retail Stores

(Reliance Smart)
Forward Integration

Customer
 HORIZONTAL INTEGRATION

Main Cosmetics Food &

Company Retail Toy Retail &Beauty Manufacturer Beverage
METRO Lotus
Reliance Hamley's Insight Campa-
Cash & Chocolate
Retail Toys Cosmetics Cola
Carry Co.
  DIVERSIFICATION
Diversification is a growth strategy that involves entering into a new market or industry.
There are two types of Diversification

RELATED UNRELATED
DIVERSIFICATION DIVERSIFICATION

1.Related Diversification :- Related diversification occurs when a firm moves into a new industry that has important
similarities with the firm's existing industry or industries.

2.Unrelated Diversification :- Unrelated diversification: When a firm enters an industry that lacks any important similarities
with the firm's existing industry or industries.
 Reliance Group
• Reliance started as a polyester company and later
diversified into energy, petroleum, retail, chemicals,
entertainment, telecom, mobile phones, and even
financial services.

RELATED UNRELATED

Reliance Retail :- It has Reliance Group :- It has

Diversified it business in
Acquire brands such as
Various sectors such as
Hamleys, 7-Eleven,
Chemicals, telecom, and
Trends Footware, Azorte,
Even Financial Services
Jio Mart, Reliance Smart
THANK YOU