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8/2/2019 A Case Study on Subhiksha
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A Case Study OnSubhiksha
Submitted By
Prabin Daimary (65)
Sonal
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Company Profile
Subhiksha is a Indian retail chain store.
It began its operation in 1997 in Chennai
with just one store with an investment ofjust Rs.50 lakhs.
It grew to more than 1000 stores by 2008.
It was started and managedby R.Subramaniam, an IIMAhmedabad alumnus.
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AIM OF THE COMPANY
To achieve deep penetration and toprovide a real alternative to the corner
grocery store.
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STEPS TAKEN BY THECOMPANY TO ACHIEVE THE
AIMDecision to provide deeply discountedgoods that customers needed on a daily
basis.
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PROBLEMS
In November 2008, Subhiksha was shutingdown 90 stores and in January 2009, it
faced severe financial crisis.
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REASONS
Rents had not been paid.
Vendors had cut off supplies owing to
long standing payment dues.
Unable to manage the supply chain toensure stocks in the stores.
Store assistants were hired locally andwere untrained.
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RECOMENDATIONS
They should have done proper planning beforehand.
They should have taken control over their supplychain management and financial management.
They should have given emphasis on hiringskilled employees.
They should have taken steps to retainexperienced employees by giving them benefitsand incentives.
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THANK YOU