Big Bazaar

Big Bazaar

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Abstract

As the Indian economy began rapidly expanding, the opportunity for Pantaloon Retail India Limited (PRIL) to enter the Hypermarket segment became readily apparent. Like others in the Hypermarket segment, Big Bazaar offers a wealth of products to its consumers, similar to Wal-Mart in the United States. They sell everything from the newest HD televisions to produce to dog toys. In less than a decade Big Bazaar has greatly expanded; in 2011 it opened its 200th store. Its main targets customers in the upper- and middle-class. Additionally, they are looking to appeal specifically to the workingwoman, as well as the homemaker. By targeting these demographics, Big Bazaar is targeting household decision makers. Big Bazaar looks to be growing almost at an exponential rate; this can be very profitable if there is proper planning in place during the mist of the growth.

With this rapid, almost exponential, growth, Big Bazaar has to consider its best option for its supply chain model. Currently, Big Bazaar is using a traditional supply chain model, which has been efficient till this point. The other option provides that Big Bazaar investments in a company owned supply chain. The benefit of the company owned supply chain, which is very appealing considering Big Bazaar’s growth rate, is that the company owned supply chain allows for the adjustments as a result of the growth to be taken into account promptly. However, the company owned supply chain comes with a large cost to implement and maintain.

The question for Big Bazaar’s then becomes for the growth they have experienced up to this point and hopes to maintain in the future: does the cost of the company owned supply chain make sense for Big Bazaar moving forward or should Big Bazaar keep its current traditional supply chain model?

Big Bazaar and the Indian Retail Market

In 2001, Pantaloon Retail India Limited (PRIL), the fastest growing...