www.azadsikander.blogspot.com The 60,000 sq. ft. warehouse section will enhance operational efficiency through centralized purchases and efficient distribution. The 15,000 sq. ft. 'cash & carry' unit will provide a customized solution for bulk buyers, including trekking agencies, restaurants and small shops.
BHAT – BHATENIThe Leading Supermarket Presented By: Kalpana Rai Sagun Thapa Rupak Shrestha Prakash Ghimire Kiran Gurung
What is BHAT - BHATENI About Bhat-Bhateni Hyper Mart Chain of development store in Nepal Outlet 5 outlet Located in Kathmandu Valley & 1 in Pokhara Owner Mr. Min Bahadur Gurung Head Office Bhat-Bhateni Head Office, Bhat- Bhateni, Kathmandu Web site http://bbsm.com.np Industry Retail
Some Interesting Facts•The idea behind Bhat Bhateni was pioneered by a visionaryentrepreneur Mr. Min Bhadaur Gurung.•Established in 1986 with one room .•Total Employee – 2,200.•Total Sales/day – 2 Crore with more than 40,000 customer daily.•Highest tax payer in the retail sector for the last five consecutive years.•Offers full range of 120,000 products from 700 local and internationalsuppliers
SWOT Analysis Strength•The one and only one leading supermarket of the country.•Huge infrastructure with ample of parking space and secure lockersystem.•Loyal Customers.•Full range of 120,000 products with reasonable price.•Prime Location of Store.•Online order receiving system with home delivery facility and clubcard.•Highly experienced manpower in retail sector . Contd……
SWOT SWOT Analysis Analysis Weakness•Limited number of stores.•No central ware house and wholesale unit.•It has been accused of providing low grade/Insufficient quality products.• Queue Management is not so organized. Longcheck out lines especiallyat Saturday and holidays .•Fewer choices of goods because it stock only those goods that likely tosell. Contd……
SWOT Analysis Opportunities•Growing level of Incomes•No big competitors till date•Increasing trends of shopping in Mall and Department stores. Contd……
SWOT Analysis Threats•Intense Competition•No proper rules and regulation form the government side regarding retailindustry.•Opportunity cost is high with high rate of bank loan.•Political Instability that will hamper the expansion growth of the store•Inflation rate is high•Operating cost is high to operate the business as the store has to depend on dieselenergy instead of hydro energy.
Positioning Strategies • BBSM has adopted price, product as core component for positioning strategies. • for the full range of 120000 products from 750 local and international suppliers • 1st retail store to operate online shopping as bhatbhatenionline.com with the statement of Save Time Save Money • As a 1st retail store with the history of 28 years, it has created an image in people’s mind as most wider range of quality goods on best price.
Organization value andcustomer value09/22/12 14
Future strategy ofThe new warehouse facility and wholesale unit in Baluwater is due to open by theend of 2012 and will enable Bhat-Bhateni to delivery further cost savings to loyalcustomers. Mr. Min B. Gurung has truly visionary long-term goals and aim to establishfarmer co-operatives in Nepal which is estimated to give employment to 50,000people in total once the store expansion programme is complete, and is likely toposition Bhat-Bhateni as the largest corporate tax payer in the country. 09/22/12 16
Analysis5 Forces AnalysisRivalry among the competitor •Namaste , CG Mart, Big Mart, Saleways etcThreat of entrants • High threat of entrance •FDI policy is favorable.Bargaining power of supplier •The bargaining power of suppliers varies depending upon the target segment. •The un organized sector has a dominant position. • There are few players who have a slight edge over others on account of being established players and enjoying brand distinction.Bargaining power of buyers • Consumers are price sensitive.. •Availability of more choice. •Unorganized retailThreat of substitutes 09/22/12 18
SCAThe sustainable competitive advantage requires value creating products,processes and services that cannot be matched up by competitors and theplan to maintain it for future.If it is the case, can Bhatbhateni boast about it?
YES!!! YES !!!!• Over the years Bhatbhateni has created a solid SCA against its competitors. It has thousands of loyal and satisfied customers.Challenges in future:With the slow increase in the number of new players in retail sector, Bhatbhateni will find it difficult in future. Also the advancement in the technology it has to keep upgrading the service to maintain its SCA.
Growth, Diversification &Global Strategy• The meteoric growth of Bhatbhateni has showed the strength of the company. The retail industry in Nepal is growing and hence has opportunities.• To maintain its growth as a corporate Bhatbhateni group has to go for business diversification. And they are going for agro-business and farmers co-operatives.• The legal prohibition has barred the foreign players coming in Nepal and cannot see any plans by Bhatbhateni in foreign countries in near future.