The case examines the financial and business related problems faced by Subhiksha Trading Services Limited Subhikshaone of the leading retailers in India. Subhiksha, which was started as a discount store inwas based in Chennai, India. Since SeptemberSubhiksha faced difficulties in operating its stores. The company had reportedly defaulted on its vendor payments which resulted in empty shelves on its stores.
This case study's primary objective is to analyse all the facts responsible for the downfall of an Indian fledging retail chain, Subhiksha. Having been started by the alumnus of the prestigious B-school, Indian Institute of Management Ahmedabad IIM-Athe long-term success, survival and profitability of Subhiksha was expected.
In the light of India's promising retail potential, huge investments were made by several big corporate houses of India, jacking up the prices of all the related parts of the industry. Being a pioneer in the organised retailing in India, Subhiksha became India's largest retail chain with 1, stores across the country.
In the process it succeeded in building a sound brand name over years with its no-frill, discount format. With Indian organised retail industry blooming under the economic liberalisations and attention from the global players, Subhiksha was expected to grow bigger, but as global recession set in, credit markets froze and Subhiksha stumbled as its capital structure could not support the requirement.
Lack of liquidity and overexpansion troubled Subhiksha as it failed to pay rent to the landlords and salary to its employees. Operations came to a standstill. However, Ramaswamy Subramanian Subramanianthe managing director of Subhiksha expressed confidence that the chain will emerge from the crisis.
To assess the Indian retail potential and analyse the feasibility for coexistence of several retail formats To understand the growth and status of various Indian retailers To analyse the factors responsible for the rise and fall of Subhiksha To draw lessons from the meteoric rise and colossal fall of Subhiksha.Questions and Answers On Subhiksha Retail Chain case study Introduction Subhiksha was an Indian retail chain with outlets selling groceries, fruits, vegetables, medicines.
Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation.
Subhiksha Case Study Essay Sample. Subhiksha is India’s largest retail chain — or some would prefer to say “it was.” Over the past few months, the network of neighborhood discount shops has been coming apart at the seams. the study about the Subhiksha failur in his business.
The case studies could become useful if past and future clients have similar cases. In this case study we will examine family, social, and intimate relationships.
Identify any role changes that may have occurred, and immediate and future effects of healthy and unhealthy habits demonstrated in this case study.