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OYO Ramps up Presence in UK; Expands to Over 100 Hotels across 25 Cities |
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Source: Business Standard, August 7, 2019 |
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Ritesh Agarwal-led OYO Hotels & Homes has increased its presence in the UK to over 100 hotels across 25 major cities and towns, including London, Manchester, Edinburgh, Glasgow, Blackpool and Torquay. Its UK business, which is less than a year-old, has tripled its portfolio in the past three months. |
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Our Case: |
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OYO began in 2012 as Oravel Stays and Private Ltd. (Oravel). In 2013, the company was named as OYO Rooms. Backed by a number of investors the company continued to raise funds and expand. To know about OYO’s domestic and global expansions till date, read our case: |
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“OYO – From a Startup to a Global Hotel Chain” |
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Flipkart Plans to Launch Free Video Streaming Service |
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Source: Livemint, Aug 6, 2019 |
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Walmart’s Flipkart unit is set to introduce a free video streaming service to draw new users from small towns and cities in India and take on rival Amazon’s Prime Video service. Flipkart is eyeing the next 200 million consumers who are coming online. The video content offering is focused on three primary aspects: it’s free, curated and personalized. |
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Our Case: |
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Flipkart began as an e-retailer of books in 2007, had expanded its offerings to include electronics, shoes, apparel, and home furnishing over a period of time. It had become the first Indian Internet company to be valued at a billion dollars. To know about strategies Flipkart adopted for its growth, read our case:
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“Flipkart: The Growth Strategies of India’s First Billion Dollar.Com Company” |
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Ikea Plans to Set up Smaller Format Stores this Year, Decides to go Online |
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Source: Business Standard, August 5, 2019
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As part of a major change in its strategy, Swedish furniture retailer giant Ikea is scouting for locations in Mumbai, India to set up five to six smaller format stores. These smaller outlets will offer a more limited array of products and services. The stores will be in the range 50,000-150,000 square feet, one-third to a tenth of the size of their flagship stores, which go up to 500,000 square feet.
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Our Cases: |
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IKEA has its presence in 44 countries around the globe – in countries like the US, the UK, Russia, the Euro region, Japan, China, Australia, etc. However, it did not enter the Indian market till 2013, though the company had its presence in the country since the 1980s as a sourcing destination for its global stores. After years of lobbying, and negotiating with and convincing the Indian politicos and bureaucrats, on May 2, 2013, IKEA's €1.5 billion investment proposal to set up its stores in India was finally accepted by the local government. To know about issues related to IKEA's market entry strategy and expansion in India, read our case:
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“Business Model and Competitive Strategy of IKEA in India”
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Patanjali Urban Sales Shrink, Rural Growth Down to a Third |
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Source: The Economic Times, Aug 05, 2019
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The Baba Ramdev-led firm Patanjali Ayurved’s sales in volume terms have shrunk in cities, while growth reduced to a third in villages even as the overall market for natural products continues to grow, a new study has found. The firm’s urban volume sales declined 2.7% during the 12 months ended April 2019, while its rural sales grew 15.7%, according to Kantar Worldpanel (formerly IMRB).
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The overall natural products market grew 3.5% in urban India, unchanged from a year-ago period, while the rural market expanded 5% against 4.4% earlier. A year ago, the company had grown 21.1% in urban areas and 45.2% in the hinterland during the same period. |
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Our case: |
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Patanjali Ayurved priced its products cheaper than its competitors by sourcing raw materials directly from farmers. It wanted to quickly expand its business across the country and reach more customers through establishing exclusive retail outlets, consolidating its online presence, and entering into tie-ups with retail chains. However, some analysts were skeptical about the company’s growth prospects. To know about Patanjali’s growth strategies to face stiff competition in the market, read our case:
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“Patanjali Ayurved: Will the Growth Momentum Sustain?”
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“Patanjali Products: Disruptive Force in the Indian FMCG Market”
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