Future Group: The Walmart of India
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Case Code: BSTR398 Case Length: 15 Pages Period: - Pub Date: 2011 Teaching Note: Not Available |
Price: Rs.500 Organization: Walmart Industry: - Countries: India Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Background Note - Future Group
The history of PRIL can be traced to the mid-1980s, when Kishore Biyani (Biyani), a commerce graduate, quit his family business of trading textiles and yarn to start manufacturing apparels. In 1987, PRIL was incorporated as Manz Wear Pvt. Ltd. and manufactured readymade trousers under the 'Pantaloon' brand. On September 20, 1991, Manz Wear Pvt. Ltd., went public and in 1992, the name was changed to Pantaloon Fashions (India) Limited (PFIL)...
Store Formats
When Walton started Walmart in 1962, it became successful with its original discount store format. By 2003, the retail giant's discount stores spanned 3,400 locations across the US. In 1998, Walmart set up Supercenters to meet the growing demand for a one-stop shop for family shopping. In recent years, the retailer closed down many of its discount stores to open more Supercenters...
Promotion
Future Group had advertised itself in its initial years when it sold its products under the Pantaloons brand using a direct selling model where customers could choose the fabric, buttons, and threads. This was done because most of the customers were not comfortable buying readymade clothes. This helped the company build brand awareness and increase its customers...
Technology Deployment and Human Capital
One of the key operational strengths of Walmart since its inception was the strategic use of information technology systems. In the 1980s, Walmart had used tools such as bar coding and electronic data interchange (EDI) for information sharing with suppliers within and across stores...
International Ventures
In the early 1990s, Walmart started its international expansion. By 2004, it had over 3,200 locations in the US, with 900 locations in the Americas, over 350 locations in Europe, and more than 440 locations in Asia. The store formats in each of its international divisions were designed depending on space constraints and consumer preferences in that part of the world. Walmart's international operations spanned 15 countries outside the US. The retailer had wholly-owned operations in Canada, Argentina, Brazil, and the UK...
competition
The 1990s witnessed several established firms such as Woolworth's, Ames, and Bradlee's going out of business. However, Walmart's SAM's club continued to face competition from warehouse stores of Costco and Home Depot. By the end of 2004, Walmart's closest competitor was Target, which served a clientele that was a little more affluent...
Looking Ahead
As PRIL drew inspiration from Walmart, it offered consumers discounts on a continuing basis. However, the store formats of PRIL were designed to suit the tastes and preferences of Indian consumers. For instance, the Big Bazaar store formats were designed in such a way to make them appear crowded because Indians liked shopping in places where there were crowds. On the other hand, Walmart stores had wider aisles which made the stores look big...
Exhibits
Exhibit I: Some of Walmart's Acquisitions
Exhibit II: Walmart's Three-Year Financial Summary
Exhibit III: Description of Verticals in Future Group
Exhibit IV: Retail Formats of Future Group
Exhibit V: Some of Future Group's Brands
Exhibit VI: PRIL's Financials for the FY 2010 (in Rs. billion)
Exhibit VII: Walmart's Store Formats and its Financials (2010)
Exhibit VIII: Walmart's International Store Counts and Store Formats (As of January 2011)
Exhibit IX: Future Group's Joint Ventures with Foreign Firms
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