Future Retail: Acquisition Spree and Beyond
(7 pages of text)
Case (Pub Mat)
Future Retail Limited (Future Retail) had a unique business model and an aggressive growth strategy that helped to make it India's largest retailing organization. In 2017, Future Retail was expanding its network of stores, but a new retail landscape was emerging, as customers were shifting to e-commerce for large purchases, due to changing lifestyles and customer preferences, while continuing to shop at small mom-and-pop stores for smaller, quick purchases. Amid such changes, how would Future Retail be able to maintain its leadership position? As it sought a larger share of the retail pie, how would it deal with an increasing customer preference toward the convenience of online ordering? How would it handle the competition from omnipresent neighbourhood stores and cart vendors?
This case is suitable as a graduate-level elective or in executive-level courses on retail marketing and retail management. The case can also be used in a course on international business or business strategy. It deals with format innovations as per market demand and various growth strategies in retail business. The case can be used to understand the role of various customer-facing and back-end operations in a retailer's performance. Working through the case gives students the opportunity to do the following:
- Understand various retail formats in organized retailing and their suitability for different shopping missions.
- Understand the complex challenges and opportunities that exist in the organized retail sector in emerging markets such as India.
- Understand the country-specific innovations in the retail business model in an emerging market such as India and appreciate the differences in similar models in developed countries.
- Appreciate the journey of a small company—from its humble beginning to becoming India’s largest retailer.
- Identify expansion opportunities in a large, highly competitive developing economy.
India, Large, 2017
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