DGPESTLE ANALYSIS for SUBHIKSHA

kroxfire

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hi,
Uploading file for DG PESTEL analysis for subhiksha....!!!!!!!!!
 

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ROSS the ERUDITE

Par 100 posts (V.I.P)
well done. nice analysis. thank you. i am new in the forum.

Hey throwing some more light on Subhiksha..

THE RISE AND FALL OF SUBHIKSHA

There are several things which went wrong in Subhiksha’s case but 2 points are staring at me:


1. Expansion against consolidation : With the availability of free [^] capital and the irrational exuberance of the markets, people tried anything and everything to just expand without actually looking back at what they have become.
2. Lack of Focus : This to me is the biggest thing every other company in India faces. Once they see profits they quickly put on their Ambani/Tata hat and try to become a conglomerate. It is just not one company they will run but they will create offshoots, Strategic Business Units, what have you and do all kinds of stuff. In the end they forget what they really want. Satyam [^] is the best example for my case against conglomerization. That is the reason why I like Infosys for their extreme focus. In Subhiksha’s case though, it is not conglomerization but the lack of focus on the product mix they are offering.

I know retail is a different thing which might be confusing for anyone to focus on. But, before opening the 500the store shouldn’t they be checking whether people are buying medicines from them or going to the medical shop round the corner. Before opening the 1000th store shouldn’t they be checking whether people are buying a mobile from them or from a specialized mobile store.

On both occasions they answer is yes. I would rather go to a store which has a specialization for the thing I want to buy. I just don’t want to waste my time in a shop which offers me everything and anything only to find that they don’t offer a thing (which I want).

That to me is the bigger issue ailing Indian retail not just Subhiksha. Subhiksha happens to be a case study for the future and current retailers.

read from Trak.in blog...there's also a very good presentation on this topic. Below giving the link:
The rise and fall of Subhiksha
 

yaju13385

New member
thanks............................................................................................................................................................................................
 
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