strategic management (2)

Strategic Management

Introduction

• Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses

• Retail forms the core business activity of Future Group

• Group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics

• Headquartered in Mumbai

• employees over 30,000 people.

• Pantaloon Retail is the flagship company of

Future Group

• has over 1000 stores across 61 cities in India

Some of the Outlets

• Pantaloons

• Big – Bazaar

• eZone

• Home Town

• Sports bar & Bowling Co.

• Entertainment Centres

Porter’s 5 Forces

• Threat of New Entrants – High

• Bargaining Power of Suppliers– Low

• Bargaining Power of Buyers– High

• Threat of Substitutes– High

• Intensity of Rivalry among competitors– High

Internal Environment

• Resources

• Capabilities

• Core Competencies

• Value Chain Analysis

• Competitive Advantage

Internal Environment (contd.)

• Resources:

-> Tangible -

Value Chain Analysis

Internal Environment (contd.)

• Capabilities and Core Competencies:

> Effective and efficient Inventory control

> Diverse Industries

> Volumes / Economies

Competitive advantage

• Competitive Advantage:

> Costly to imitate - Volumes / Economies

> Valuable :

Adaptability - To be flexible, to meet challenges

Introspection - Leading to purposeful thinking

Corporate Level Strategy

• Future’s Group adopted strategy to deal in several industries such as:– Home appliances– Apparels– Hotel Industry– Insurance– Capital Market– Entertainment & Leisure– Foot Mart Retail

Diversification

Core Sectors

Retail

Brands

Consumer Finance

InsuranceCapital

Media

Learning &Development

Shopping Malls

SupplyChain

solutions

Business Level Strategy

• Cost Leadership– Big Bazaar & Food Bazaar

• Focused Differentiation– Aadhaar : agri-service cum rural retail

Co-operative Strategy

• JVs with:

1. Staples Inc., U.S. - Staples Future Office Products Pvt. Ltd. was formed in May ’07 with an aim to make it easy for Indian customers to run their offices by providing over 7000 products covering the entire gamut of technology, stationery and office furniture.

2. Generali Group, Italy - Future Generali

Achievements• CNBC Awaaz Consumer Awards 2009

• Most Preferred Multi Product Chain - Big Bazaar

• Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar

Images Fashion Forum 2009

• Most Admired Fashion Group Of The Year - Future Group

• Most Admired Private Label - Pantaloons, the lifestyle format

• Critics Choice For Pioneering Effort In Retail Concept• Creation - Central

Achievements

• Coca-Cola Golden Spoon Awards 2009– Most Admired Food & Grocery Retailer Of The Year– Most Admired Food Court– Most Admired Food Professional

• Indian Retail Forum Awards 2008– Most Admired Retail Company of the year - Future Group– Retail Face of the Year - Kishore Biyani– Best Retailer Of The Year (Hypermarket) - Big Bazaar – Future Group was awarded the Most Admired Retail Company

of the year by the Indian Retail Forum at a glittering ceremony organized in Mumbai. Mr. Kishore Biyani also won Retail Face of the Year