ANSWER 1 The concept for narrow alleys and creating an experience of typical indian bazaar has been successful

till now and Big Bazaar has also been successful with its policy of low price selling to consumers which is typically demanded by indian consumers. It also has its tag line to be Isse sasta aura cha kahin nahi . While big players like wal-mart are internationally renowned stores for their convenient stores with broader alleys , lesser waiting offering convenience to customers. They have larger stores than those big bazar and have a greater product offering and yet believe to concentrate quality first and yet is the retail store to sell products at lowest cost worldwide. Because there has been a wide range of customers that stays of hustle and and when stores may offer convenience with lower prices as for big players like Walmart , Big Bazaar definitely will shake with its concept of indian bazaar environment as development grows indian population has also shown a shift from inconvenient traditional bazaars to convenient malls.

ANSWER 2 The traditional SCM has been succesfull for BB though Reliance opting for exclusive SCM has till now failed to be successful as the exclusive SCM is quite expensive for FMCG sector. Reasons for it being inventory management i.e. inventory carrying cost and government regulations. Firstly , big bazaar doesnt hold more than 5-7 percent reason being they order like multiple regular orders instead of one big order providing them two benefits- they dont have to maintain huge inventories reducing inventory cost and also it solves the problem of out of date stock , these problems makes reliance system a bit expensive and unsuccessful. Secondly, reliances idea to buy from one place and distribute at their convenience and Big Bazaar to buy from local suppliers pose a advantage in favour Big Bazaar that they dont have to maintain inventory management for a national level that is difficult and uneconomical to manage. It is uneconomical for non-traditional SCM because average sales tax of 6.5% on products shipped to each state and taxes could not be recovered if products were later reshipped to another state.

ANSWER 3 It is important to note here that what Kishore Biyani means by farm to plate is close proximity to the local farmers so as to retain the freshness of the produce sourced from them. There is nothing new in this concept as the competitors of Food Bazaar like FoodWorld, FabMall etc. are also following the operations strategy of sourcing the green vegetables from local farmers directly. However, it is not possible to get each and every vegetable/ fruit in any single location in the country. Hence, it is imperative that delivery mechanisms for transporting such produce from different parts of the country to the stores scattered through out the country are created. Example several species of fruit like alphonso mango etc. may not be present in all cities of BB stores , so it has to be seen to get from places where it is available.

ANSWER 4

Kishore Biyanis approach to creating his own brands would indeed be helpful in reducing this dependence upon FMCGs in a big way. It is easier for him to create his own brands in garments due to his long presence in this business through Pantaloons. However, for many other items, it would require substantial investments in case he decides to pursue backward integration (manufacturing the items himself) and then, branding such items. At this stage, when competition from Reliance and Bharti-Wal Mart is about to catch up, a trade-off in investments for expanding in terms of number of stores/ retail space vis--vis in creating own brands would be required. At the same time, hefty margins (at competitive pricing) for own brands can become the cornerstone of Big Bazaars survival and growth in the times to come. It has an advantage other competitors dont have i.e. having fresh stock due to traditional SCM that caters with solution to stay away from out of date stock. It offers them a loyal customer base as other stores offering products from other retail houses like hll etc. only face this problem of out of sale stock at shelfs upto 40 percent.