Case Study

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FOODWORLD SUPERMARKETS
CASE ANALYSIS
By
Narwal, Manvir Kaur
Wendt, Shiela
Empestan, Deanne
Hernandez, Ylisha Noelle
Francisco, Archie
BSBA FM-III-A
Ms. Merlin De Gracia
(Instructor)
March 18, 2013

THE INDIAN RETAIL INDUSTRY SCENARIO
On the basis of a report published by the India Retail Forum, the organized retail account for Rs.55,000 crore (about $12.4 billion) in the year 2006 and still it’s just about only 4.6% of the total Indian Retail Value that was about Rs.12,000,000 crore ($270 billion). It means that the major portion of the Indian Retail market is unorganized retail. I. STATEMENT OF PROBLEM

Businesses in many small towns feel threatened by the invasion of large corporations coming in and dominating the retail and service industries within the immediate geographic area. Does the company will be able to meet its objectives? Business owners in Spencer, a small town expressed concern about a FoodWorld Supermarket. This FoodWorld Supermarket offered a grocery store, fast-food restaurants, hair salon, pharmacy, optical center, and other items. In order for small retailers in Spencer to survive, business owners needed to identify competitive strategies to co-exist with FoodWorld Supermarket. Therefore, to develop competitive strategies, the current retail environment needed examination.

II. POINT OF VIEW
The point of view from the retailers said that the importance of supermarkets in the world food economy has increased radically since the early 1990s. They are now major sellers and buyers of food items not only in developed but also in developing countries. Urbanization and the liberalization of the services sector have been important facilitators of this process. III. OBJECTIVES

* Become a pioneer in an organized, large-scale, world-standard retailing operation in India. * Become the largest retail chain in India.
* Be willing to make substantial investments to establish a national presence. * Fine-tuning the Spencers format appeared to be the most obvious next step in preparation for expansion; especially since Spencers executives were unfamiliar with alternative formats. IV. AREAS OF CONSIDERATION

SWOT ANALYSIS

STRENGHTS

* family business for almost century
* aware of Indian Customer needs
* concept of value for money
* Customers will have access to greater variety of international quality branded goods. * Employment opportunities both direct and indirect have been increased. Farmers get better prices for their products though improvement of value added food chain. * Increase in disposable income and customer aspirations are important factors. * Increase in expenditure for luxury items is also vital. * It has also contributed to large scale investments in the real estate sector with major national and global players investing in devolving the infrastructure and construction of the retailing business. * Large domestic market with an increasing middle class and potential customers with purchasing power. * The benefits of larger organized retail segments are several. The consumers get a better product at cheaper price. So consumers get value for their money. * The governments of states like Delhi and National Capital Region (NCR) are very upbeat about permitting the use of land for commercial development thus increase the availability of land for retail space. * Typicality of customers in terms of varied tastes and demand for wide range of goods. WEAKNESS

* Will mainly cater to high-end consumers placed in metros and will not deliver mass consumption goods for customers in villages and small towns. * Retail chains are yet to settled down with proper merchandise mix for the mall outlets. Retailing today is not about selling at the shop, but also about researching and surveying the market, offering choice, competitive prices and retailing consumers as well. * Small size outlets are also one of the weaknesses in...
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