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PORTER’S 5 FORCES MODEL
1. RIVALRY AMONG COMPETITORS :
Reliance Retail, Aditya Birla group, D mart, Patanjali are the competitors to BIG BAZAAR. Unorganised 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.
2. THREAT OF ENTRANTS:
There are a lot of brands which are planning to enter the Indian markets like Wal-mart, D mart and Tesco which is a big threat to Big bazaar. Executives may shift from the company and work for the rivals. High initial investment and fixed costs
3. BARGAINING POWER OF SUPPLIER:
The bargaining power of suppliers varies depending upon the target segments. When suppliers are few and demand for their offered product is high, it strengthens the supplier’s position against Big Bazaar. If Big Bazaar is not well educated, does not have adequate market knowledge and lacks the price sensitivity, it automatically strengthens the supplier’s position against the organisation.
4. THREAT OF SUBSTITUTES:
A cheaper substitute products/service is available from another industry
Availability of more choice.
Substitute product offers the same or even superior quality and performance as
offered by Big Bazaar’s product.
Chance of shifting is high.
5. BARGAINING POWER OF BUYERS:
Consumer’s price sensitivity, high market knowledge and purchasing standardised products in large volumes also increase the buyer’s bargaining power. A more concentrated customers base increases their bargaining power against Big Bazaar. Perception of low price = low quality; Since most products at Big Bazaar are low priced.
CHAPTER 6
CHAPTER 4
SWOT ANALYSIS OF BIG BAZAAR
STRENGTHS:
Affordability for middle class is provided by big bazaar in India.
BIG BAZAAR offers quality, choice and convenience.
Wide range of products and service offering.
Attractive promotional offers given by BIG BAZAAR to attract customer
through discounts, sales, exchange offers etc.
Good branding and advertising by also roping in celebrity brand ambassadors
also boosted Big Bazaar’s presence.
WEAKNESS:
BIG BAZAAR is not know globally and restricted to the Indian market on
only.
Specific items are not consistently available
High cost of operation due to large fixed cost
OPPORTUNITIES:
Growth in the income of the customers
BIG BAZAAR can plan to expand globally by tie-ups
Provide quality services to the customers
More people these days prefer to visit big stores where they can find large
variety under one roof.
THREATS:
Competition from other value retail chains such as Shoprite, Reliance (fresh and trends), Hyper city and D mart. Changing government polices Advancement of technology day by day High business risk involved
CHAPTER 3
Mckensy’s 7S framework
which are compared to previous year’s sales and revenues. This is done constantly and monitored by department managers daily.
- SYSTEMS :- There is well organised and monitored centralized system in place that does sometimes real time checking of inventory to monitoring of stock turnover. Daily targets are set using MS Excel sheets wherein each individuals is provided with daily, weekly and monthly targets to be achieved and also performances are measured using this. Also the cash counter there is software in place that alerts the main logistic department about which products are in excess stock and which are fast depleting. This is done through bar-coding each and every items for sale in the company. Also for security purpose the items are tagged and employees are also checked for any shop-lifting are other such activities. There are strict protocols that help in constant monitoring and maintaining daily activities in each department.
- Shared values :- In big bazaar the shared values are those which help in maintaining customer loyalty and increasing repeat sales. The trust of high quality products at a reasonably low price compared to other retail outlets and through launch of various schemes and offers to attract customers by giving them discount and payback points.
- SKILLS The management pays attention to training and development of each and every employee from top to bottom and there are sessions and meeting for the same purpose. Each employee before joining the organisation undergoes training on how to handle each and every department work and follow certain code of conduct required, grooming, dressing sense, training on various aspects of window dressing and colour blocking, customer service and how to behave in order to make the customer feel more happy during the whole shopping experience, how to handle customer complaints and respond in various situations.
6. STYLE :-
Centralized chain of command in which there is way of hierarchy and decisions are mostly from the top managements that are carefully grafted and implemented at various branches.
- STAFF :- Each individuals employee’s position and specialization are represented within the team. Starting from the top there is store manager, Asst. store manager, HR manager, department manager, team leader and other team members who functions in co-ordination with each other on daily basis. Other positions in various other departments are also managed by the store manager through delegation of work through assistant manager.
