Rise and Fall of Subhiksha


Code :BSM0054

Year :

Industry : Retailing

Region : India

Teaching Note:Available

Structured Assignment :Available

Buy This Case Study

Abstract: This case study's primary objective is to analyse all the facts responsible for the downfall of an Indian fledging retail chain, Subhiksha. Having been started by the alumnus of the prestigious B-school, Indian Institute of Management Ahmedabad (IIM-A), the long-term success, survival and profitability of Subhiksha was expected. In the light of India's promising retail potential, huge investments were made by several big corporate houses of India, jacking up the prices of all the related parts of the industry.

Being a pioneer in the organised retailing in India, Subhiksha became India's largest retail chain with 1,665 stores across the country. In the process it succeeded in building a sound brand name over years with its no-frill, discount format. With Indian organised retail industry blooming under the economic liberalisations and attention from the global players, Subhiksha was expected to grow bigger, but as global recession set in, credit markets froze and Subhiksha stumbled as its capital structure could not support the requirement. Lack of liquidity and overexpansion troubled Subhiksha as it failed to pay rent to the landlords and salary to its employees. Operations came to a standstill. However, Ramaswamy Subramanian (Subramanian), the managing director of Subhiksha expressed confidence that the chain will emerge from the crisis.

For Case Books Click Here >>

For Case eBooks Click Here >>

Pedagogical Objectives:

  • To assess the Indian retail potential and analyse the feasibility for coexistence of several retail formats
  • To understand the growth and status of various Indian retailers
  • To analyse the factors responsible for the rise and fall of Subhiksha
  • To draw lessons from the meteoric rise and colossal fall of Subhiksha.

    Keywords : Indian Retailing; Indian Retail Stores; Subhiksha; Retailing; Retailing Industry; Retailing Formats; Indian Retail Competition; Indian Retail Segments; Organized Retail in India; Organized vs Unorganized Retailing in India; Indian Organized Retail; Store Location; Category Management; Positioning; Private Labels; Store Location

    Contents :
    Indian Retail Industry: Untapped Potential and Successful Failures
    The Rise and Fall of Subhiksha
    Is Indian Retail at Crossroads?

    Case Introduction >>

  • Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
    Mob: +91- 9640901313,
    E-mail: casehelpdesk@ibsindia.org

    2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap