Green Chillyz

GROUP 3
SOUMALYA MOITRA 111
TANASHA AMLANI 113
VIGNESH KISHAN 118
ASHIMA MAHESWARI 129
 CASE FACTS

In 1999, when GCZ came to be, Bhubaneswar was a fast-growing city

with the onset on new industries and growth of IT sector in the city

This led to a change in the composition of population with a boom in the

young population

The Rao brothers developed a loyal consumer base through offering

dishes that appealed to their consumer’s palate - the floating crowd.

The Roa brother’s also knew that to acquire ‘sustainable competitive

advantage’ their menu had to be different from their competitors, for
which they observed consumers to understand the need-gap in the
market and addressed the same - a wholesome meal - Biryani.

They currently operate in Bhubaneswar, Cuttack, Berhampur, and

Bengaluru.
The case demonstrates a changing geo-demographic structure in Bhubaneswar between the
late 1990s and mid-2000. Discuss the impact of these changes on fast food consumption
habits. How would you establish that GCZ has used market, not product, orientation?

Changes in the economic Impact on food The Roa brothers realised

and commerce set-up,
expansion of educational
opportunities (KIIT) led to
change in demographic
structure - a boom in the
number of young people.
Influx of young people
from Jharkhand,
Chhattisgarh, Bihar and
West Bengal as:
- Early Jobbers (IT
professionals)
- Students (engineering
college, students preparing
for competitive exams)
consumption habits:
Need for quick snack
solutions
Food suited to the palate of
people of this age group
(young adults) and from
these regions
There was a need for
budget friendly, but tasty
and filling food, something
to satisfy their cravings.
the need to differentiate
themselves from the
market.
The realised the unaddressed
demand for ‘dinner meal’
(especially in winters when
classes/office would end
later)
To address this demand they
talked to their own staff and
consumers - realising over
half of their consumers were
between 18-27 years - whose
taste palate was different
from a middle-age audience.
Market Orientation:
They identified a market
need-gap and designed
their product to cater to
that need.
Product Orientation:
The brothers did not
follow the route of
creating a product and
then pushing the same to
the consumers.
Does GCZ demonstrate strategic inertia? Support your answer.

Strategic inertia is defined as a condition where the firm gets

complacent or does not strive to differentiate itself.

No, GCZ used marketing research and astute strategic

planning for all it’ decision making. The company has won
many awards and it’s 2016-17 revenue from it’s signature
product biryani stands at over 1lakh, per day per outlet. On
their 19th anniversary the Rao brothers had all-india
expansions to loyalty programs. They envisioned becoming
an international chain with expansion into middle-east,
Europe and USA markets ultimately.
“GCZ has redefined the boundaries of the fast food business by
adopting a reconstructionist view of strategy and introducing
biryani as a fast food item." Do you agree with this statement?
Justify your answer.

Yes, they did adopt a reconstructionist view of strategy since the strategy
signifies the use of differentiation and low cost methods. In this case, we
observe something similar.

Their menu had common items to offer which was available even with
competitors. They included fried items like noodles, pakodas, etc. -
eventually leading to a saturated market. Even though they had a loyal
consumer base, with low prices on offer for other snacks, they needed
something different.

To break the same product offering, GCZ decided to offer and include
Biryani as a fast food, and set themselves from the clutter of the
competition, affirming their reconstructionist view of strategy.
 The Rao brothers have expressed a goal of becoming a successful
multinational enterprise in the future. Based on the facts in the case, what is
the likelihood that they will succeed in this endeavour? Justify your answer
with evidence.

The Rao brothers have done well in capturing their market and succeeded in their comfort
zone. However, expansion on a large scale leading it to become a multinational may invite
some different kind of complexities and challenges:

A) The first problem would arise to source their raw materials. With Southern states in India
and Delhi being their main source of raw materials, it would be difficult sourcing similar
quality and quantity of raw materials internationally. However, even if imports were
possible, it would lead to incurring of huge costs to the company.
B) Management control and supervision would also be a major challenge. Once a
company expands, implementation of common managerial/strategic norms and
procedures across divisions would become very complicated. Moreover, supervision for
the same would invite more troubles, considering they’ve been regulated closely by the
brothers; they can’t have their eyes everywhere.
C) Entry by new foreign players might pose a major threat, considering the company has
been prone to strategic blunders and failures in the past.
Fin.