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Kishore Biyani & Big Bazaar

Submitted To: Prof. Amit Tyagi Submitted By: Ratnesh Rashmi Raspinder Ravinder Sahiba

Answer-1
Biyanis Vision- To give the Indian customer the feel of a local market place-narrow lanes, crowded market place and customers bumping into each other and into commodities. Saving is the key to the Indian middle class consumer. The concept of Bazaar, As the store offers large mix of products at a discounted price, the name Big Bazaar was finalized The idea was to recreate a complete bazaar, with a large product offering and offer a good depth and width in terms of range

In long run Big bazaar layout will face problems, in the wake of entry of big players such as Wal-Mart in Indian .

Then what will be the impact?????

Where the problem lies with

??

Biggest problem lies with Big Bazaar is the Inventory level Management. Still they follow Traditional supply chain. Low in Technological upgradation. Delivery not in Time. High Debt exposure. In-house brands occupy 40% of equity.

Low cost leadership: Wal-Mart uses legendary inventory replishment system

Through this system Wal-Mart continuously sends orders for new merchandise directly to suppliers as soon as customer pays for purchases at cash register. By this Wal-Mart does not have to spend money on maintaining large inventories of goods in its own warehouse and can adjust with customer demand. By this customer response system Wal-Mart easily manages to keep its operational costs low.

Answer-2
NO BIG BAZAAR WILL HAVE TO CHANGE TO EXCLUSIVE SUPPLY CHAIN FROM TRADITIONAL SUPPLY CHAIN. TRADITIONAL SUPPLY CHAIN HAS A SEQUENTIAL PROCESS, ANY GLITCH AT ANY STEP CAN DISRUPT THE WHOLE CHAIN. EXCLUSIVE SUPPLY CHAIN BEING FOLLOWED BY REALIANCE AND BHARTI-WAL MART CONSISTS OF MESH LIKE NETWORK IN WHICH EACH ENTITY IS CONNECTED TO EVERY OTHER ENTITY.

Answer 3
Having a farm near the place of sale is a VERY good idea. This can be attributed to the following factors: Reduction in prices. Reduction in transportation cost. Provision of fresh goods. Reduced dependency on middlemen. Low Inventory due to frequent deliveries. Low Inventory Carrying Cost.

against the concept


The concept is not operationally viable in cities.
Increased costs due to requirement of farming land. In case of cities, since agricultural land is far away, product would not be as fresh, and prices would vary. In case of semi urban areas which have agricultural land nearby, it is viable. In cases like arid and semi arid places, where agricultural practices are not viable. Changes in Industrial Policy of the Government, favours decentralization and dispersal of industries to achieve overall development of the country, would not permit expansion of the exist.

Answer 4 (for)
Keeping in-house brands is a good idea as long as demands can be easily met.
Prices can be kept in control. Quality is maintained.

Brand Recognition increased visibility of Brand lowered marketing, advertising & promotion costs. Market Capture. Reduced dependency on external factors. Product Line Extension

Answer 4 (against)
Keeping in-house brands is not a good idea since it is an overhead for the Company
Increased overhead expenses for production. Extra space needed to accommodate over and above existing brands. Increased labor costs, inventory, maintenance etc.

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