Subhiksha: An Indian Retailer in Trouble
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTR333
Case Length : 15 Pages
Period : 2008-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Subhiksha Trading Services Limited
Industry : Retail
Countries : USA
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Indian Retail Industry
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The retail industry in India remained quite fragmented and
dominated by unorganized retailers till the early 1990s. There was a lack of
trained personnel, restriction over the entry of foreign players, and a lack of
consumer awareness which discouraged the growth of organized retailing in India...
The Subhiksha Story
The history of Subhiksha dates back to the late 1990s. In March 1997, Subhiksha was founded by Subramanian and its first retail store was started in Tiruvanmiyur, Chennai, a city in the southern state of Tamil Nadu,
India.
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The word 'Subhiksha' was taken from the Sanskrit word, 'Subhiksham' which means
'Giver of all good things'. Subhiksha was started with its focus on value for money...
Subhiksha on Expansion Spree
From 2004 onward, Subhiksha changed its earlier strategy of consolidation and started expanding rapidly. Subhiksha, which till then, had been a Chennai-based retailer, wanted to capitalize on the rapid growth of the Indian economy. From early 2006 onward, Subhiksha also changed the service format in its stores. It started what it called a
'hybrid model' where it displayed products for self service in addition to its earlier model...
Excerpts Contd...>>
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