Industrial analysis of BIG BAZAAR with VRIO framework, Porters 5 Force, Strategic Chart etc.

2. RETAIL INDUSTRY
• The retail industry comprises establishments engaged in selling
merchandise or commodities for personal or household consumption,
mainly consisting of apparel and accessories, technology, food and
beverages, home improvement specialty, pharmaceuticals and others.
• According to AT Kearney report India replaced China as the most
promising retail market in the world.
• The retail industry is highly fragmented and it dependent on
macroeconomic factors such as GDP, disposable income, and consumer
spending.
• Asia Pacific(APAC) dominates the industry, representing 35% of the global
market.
• The global economic recession, inflation, and high unemployment rates
are some of the challenges that are negatively affecting the retail industry.
• Retail shop occurs in diverse range of types and in many different
contexts- from strip shopping center's in residential streets through to
large, indoor shopping malls.

3. ABOUT BIG BAZAAR
• Big Bazaar is an Indian retail store that operates as a chain of
hypermarkets, discount department stores, and grocery stores.
• The retail chain was founded by Kishore Biyani under his parent
organization Future Group, which is known for having a significant
prominence in Indian retail and fashion sectors.
• Big Bazaar is also the parent chain of Food Bazaar, Fashion at Big
Bazaar (abbreviated as fbb) and eZone where at locations it houses
all under one roof, while it is sister chain of retail outlets like Brand
Factory, Home Town, Central, eZone, etc.
• Founded in 2001, Big Bazaar is one of the oldest and largest
hypermarkets chain of India, housing about 250+ stores in over 120
cities and towns across the country.

4. Introduction
Indian Retail Industry
Evolution
• In the 1980s, manufacturers retail
chains namely DCM, Gwalior Suitings,
Bombay Dyeing, Calico, Titan and so
on.
• Multi-brand retailers came into the
picture in the 1990s.
Financials
• 100% FDI proposed by NDA govt.
(2017)
• 10 per cent of the country's GDP
Major Players
Hyper city, Reliance Mart, Spencer’s
Hyper, More Megastore, D- Mart, Star
Bazaar, Lulu Hypermarket
Big Bazaar
Overview
• Operates as a chain of hypermarkets,
discount department stores, and
grocery stores.
• Leader in Hypermarket (62%).
• 250+ stores in over 120 cities and
towns across the country.
Financials
• Revenue :23.8 Cr.
• Profit : 368.28 Cr.
Competitive Advantage
• Variety of Merchandises
• Large Chain of Stores
• Apt Locations
• Low Monetary value

13. FIVE FORCES
RIVALRY AMONG COMPETITORS  Reliance Retail, Aditya Birla Group , D-Mart,
Vishal Retail’s, Patanjali.(Reliance has major
plans for expanding)
 Unorganized retail stores are a threat to the
business of big bazaar as now also people
prefer to go to the local stores which are
convenient enough for them.
 The changing policy of government can be
harmful to the business of big bazaar as the
changing tax policy or the restriction to
open a store in the area can be harmful for
its plans to move ahead.

14. FIVE FORCES
THREAT OF ENTRANTS  There are a lot of brands which are
planning to enter the Indian market like
Wal-Mart, Carrefour and Tesco which is a
big threat to Big Bazaar
 Executives may shift from the company
and work for the rivals.
 Domestic conglomerates looking to start
retail chains.
 Industry profitability:- the more profitable
an industry more attractive it will be for
competitors to enter.
 Government of India has allowed 100
percent FDI in online retail of goods and
services .

15. FIVE FORCES
BARGAINING POWER OF SUPPLIER •The bargaining power of suppliers
varies depending upon the target
segment.
• There are few players who have a slight
edge over others on account of being
established players and enjoying brand
distinction.
 Employee solidarity. (eg. Labor
unions)

16. FIVE FORCES
THREAT OF SUBSTITUTES • Unorganized retail
• Chances of shifting is high.
• Small retailers and stores.
• Availability of more choice.
• Their Brick and mortar rivals opening
e-commerce.

17. FIVE FORCES
BARGAINING POWER OF
BUYERS
 Consumers are price sensitive.
 Offers , discounts, gift coupons etc. given by other
retailers to lure consumers in
 Customer loyalty to established brands.
 Perception of low price= low quality; Since most
products at Big Bazaar are low priced.
 Rising incomes, Urbanisation etc

18. RESOURCE BASED VIEW
•MONITORING BEHAVIOR-
STRICT,DISCIPLINED, STRONG SOP,
TIME TO TIME AUDIT BY AREA
MANAGER, TRAINING TO
EMPLOYEES.
•OFFERING PERFORMANCE
INCENTIVES
•THROUGH
CONTRACTING,INTEGRATING,BARG
AINING POWER
•CONTRACTING ON THE BASIS OF
SHELF BASE
•INEGRATING- LAUNCHED MANY IN
HOUSE BRANCH- eg TASTY TREAT.
•TATA HYPER MARKET,
MORE,RELIANCE FRESH
• BIG BAZAAR+ CARREFOUR TIED UP TO
MAKE CASH AND CARRY OUTLETS
•50:50 JV WITH AXIOM TELECOM LLC.
UAE TO DO SOURCING AND
DISTRIBUTION OF MOBILE HANDSETS
•FUTURE BAZAAR INDIA LTD SET UP
HAS A E-RETAILING ARM OF THE
FUTURE GROUP.
•INCREASING COMPETITION FROM
SIMILAR BRANDS & INTERNATIONAL
BRANDS.
•DESIGN MANAGEMENT TEAM IS UNIQUE
AND BIG BAZAAR IS ONE OF THE FEW
FIRMS WHICH HAS A STRONG ONE.
•ENCHROACHMENT OF THESE BRANDS
INTO RURAL INDIA.
IMITATION SUBSTITUTION
SLACKNESSHOLDUP

19. VRIO FRAMEWORK
PARAMETERS VRIO IMPLICATION
BRAND VALUE  VALUABLE
 RARE
 IMITABLE
 ORGANIZED
TEMPORARY COMPETITIVE ADVANTAGE
CUSTOMER EXPERIENCE  VALUABLE
 RARE
 INIMITABLE
 ORGANIZED
SUSTAINABLE COMPETITIVE ADVANTAGE
DISTRIBUTOR AND DEALER
NETWORK
 VALUABLE
 RARE
 IMITABLE
 ORGANIZED
TEMPORARY COMPETITIVE ADVANTAGE
CORPORATE LEADERSHIP
AND VISION
 VALUABLE
 RARE
 INIMITABLE
 ORGANIZED
SUSTAINABLE COMPETITIVE ADVANTAGE
EMPLOYEE BENEFITS  VALUABLE
 RARE
 INIMITABLE
 ORGANIZED
SUSTAINABLE COMPETITIVE ADVANTAGE

20. STRATEGY

21. STRATEGY AND POSITIONING
SHOPPER’S STOP
RELIANCE MART
TRENT LTD.
MORE D-MART

22. FUTURE OF BIG BAZAAR
 Future Group-Country’s biggest retailer is changing its pricing strategy to `Har Din
Low Prices’ mimicking Wal-Mart's global everyday low prices, this puts pressure on
its rivals to drop grocery prices.
 In 2018, the prices of about 1500 stock will be the lowest in the country
benchmarked against online and brick and mortar rivals.
 The focus will be on food products, which will be through their own brands and
discounted national brands, this will help in acquiring new customers and
frequency of existing customers.
 The first round of discounting will be in the range of 6-30%, strategy will be
implemented at around 280 Big Bazaar outlets and this will bring in additional
Rs.2000 crore savings for consumers annually.
 The move is Biyani group’s most aggressive move take on rivals such as Avenue S
Supermart’s D’Mart, Reliance Retail as well as online players- Flipkart and Amazon.
 For its Vision 2021, Future Group is looking to more than treble revenue to Rs.
75000- 1 lakh crore from 22000 crore in 2017.

23. References
• http://m.economictimes.com/industry/services/retail/low-prices-
the-way-forward-for-future-group/amp_63586980.cms
• http://shodhganga.inflibnet.ac.in/bitstream/10603/51500/8/08_ch
apter3.pdf
• https://www.slideshare.net/SiddharthTripathi1/big-bazaar-
16609164
• http://www.futureretail.in/pdf/FRL_Annual_Report_2015_16.pdf
• http://www.futureretail.in/pdf/Annual_Report_2016_17.pdf
• www.serialsjournals.com
• www.slideshare.net/karanjaidkakj/rf-project-group-11
• Viragbrand.blogspot.in/2012/05/bigbazaar-price-challenge.html
• https://www.ibef.org/industry/retail-india.aspx
• https://www.ibef.org/industry/indian-retail-industry-analysis-
presentation