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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