D-Mart has succeeded as a hypermarket chain where Vishal Megamart has failed due to differences in their expansion strategies and supply chain management. D-Mart expanded slowly, focusing on consolidating stores in prime locations before further expansion, while Vishal Megamart grew too quickly without proper capital or attention to locations. D-Mart also had stronger supply chain practices like quick supplier payments and inventory aligned to customer needs, unlike Vishal Megamart's distribution center model that failed to build an effective IT network and resulted in excess inventory.
3. Reasons behind the success and faliure
• Expanision :-
• D-mart slowly expanded which helped them
find out and even establish in prime locations.
• Whereas Vishal Megamart expanded without
having the proper capital and dint bother
about locations.
4. Reason’s Continued
• Consolidation:-
• D Mart focused on consolidating and
stabilizing itself first at every store they
started with.
• Whereas, Vishal Megamart instead of
stabilizing and consolidating first in different
places and then moving to newer
locations, tried to be the first in every town.
5. Reasons continued
• Inventory and Supply chain
• D Mart, for instance, pays its suppliers within 48 hours of
delivery, making two-three per cent additional gross
margins which it passes on to consumers. This helped them
in building customer relation and also have a well planned
stocks in the inventory which resulted in better supply
chain.
• Vishal Megamart distribution centre led model failed as it
couldn’t build an IT network. Buying at warehouses was
mostly not aligned to what the customers needed and
resulted in dead inventory and even boughtgoods on credit
from suppliers on 30 to 60 days’ credit
6. Conclusion
• Dmart success and Vishal megamart’s faliure
is due to the following factors:-
1. Low overheads
2. Strong supply chains
3. Consumer connect in the markets they
operate.
4. Expansion planning.
