Biz. envn ppt (2)
- 1. Robust business strategy to guide companies through a recessionary period. Neha Parashar & Vedika Saxena
- 2. NEED OF BUSINESS STRATEGY DURING RECESSION CREDIT CRUNCH RISK AVERSION DECLINE IN SALES LOWER PROFIT STOCK FALL DUMPING OF STOCKS BY INVESTORS
- 4. EXTERNAL, ENVIRONMENTAL FACTORS. POSITION TO BE ACHIEVED IN LONG RUN. MARKET TO COMPETE IN. RESOURCES REQUIRED TO COMPETE. MEANS TO PERFORM BETTER THAN THE COMPETITORS. A I M S ARENAS VEHICLES DIFFERENTIATORS STAGING ECONOMIC LOGIC ELEMENTS PLAN IMPLEMENTATION EVALUATION PROCESS THE POSITIONING SCHOOL THE RESOURCE BASED VIEW F O C U S
- 6. BUSINESS STRATEGY AND ECONOMIC RECESSION RETRENCHMENT STRATEGIES INVESTMENT STRATEGIES AMBIDEXTROUS STRATEGIES
- 7. COMPETITIVE STRATEGY IN RECESSION ECONOMY: A CASE OF BIG BAZAAR IN INDIA SANCHARAN ROY Faculty, Management Studies, New Horizon College of Engineering, Outer Ring Road, Panathur Post, Bangalore-560 087, India International Journal of Economic Issues, Vol. 4, No. 2 (July-December, 2011) : 155-164 © International Science Press
- 8. Contents of the Research Paper - PROBLEM STATEMENT- “How does a retailer utilize their competitive strategy to increase their performance in recession economy?” - PORTER’S GENERIC COMPETITIVE STRATEGIES - RETAILER’S REACTIONS IN RECESSION ECONOMY -METHODOLOGY USED In -depth interviews were carried out with Area Managers, Sales Managers, and Store Managers. The interviewees had been working for more than 2 years with Big Bazaar . - IMPLICATIONS OF THE CASE - CONCLUSION P1: Retailers tend to exercise the low cost focus Strategy P2: Retailers tend to exercise the differentiation focus strategy.
- 9. PORTER’S GENERIC COMPETITIVE STRATEGY
- 10. Implications of the Case Source: Research Article - Confirmed both the propositions - Differentiation Focus in terms of product strategy and promotion strategy. - Cost Focus through improving logistic systems, reducing food wastes, increasing employees’ effectiveness.
- 11. Problems/Inputs - Declining consumer demand - High operating costs - Meet competition in marketplace - Low sales growth - Unprofitable intermediaries Reasons/Process - Decline in consumer confidence (consumer buying behaviour) - High cost of operations (Recession economy) - Low Purchasing Power of consumers. - Slumped prices Solutions (Implemented by Big Bazaar) - Everyday low pricing product. - Improving logistic systems - Reducing wastes - Increasing effectiveness of the stores - Withdrawing unprofitable products - Differentiating product range - Differentiating promotion program Other Solutions - Entering Foreign market - Offering products directly to consumers. - Eliminate unprofitable intermediaries in distribution channel. - Narrowing product lines - Reallocation of scarce resources. - Advertising campaigns emphasizing rational motives- safety, reliability, and durability, rather than image and status. Impact/Results - Market Share maintained without sacrifing profit margins + Stimulation of Demand
- 12. Conclusion - In particular, in recession period, retailers need to exercise a combination of competitive strategies: low cost focus and differentiation focus strategy. - For focus strategy, firms need to pull unprofitable products from the shelves, and focus on profit-driven product selection. - In differentiation strategy, retailers need to be more selective in which products to offer, and more creative in their promotion strategy.