STRATEGIC MANAGEMENT
INDUSTRY: RETAIL
COMPANY: RELIANCE RETAIL
Group Members
Shrushti Shete
21106B1024
Surabhi Hindlekar
21106B1031
Niraj Jadhav
21106B1025
Pawankumar Varma
21106B1032
Priya Chaudhari
21106B1033
Vaibhav Mhatre
21106B1034
Baqer Shaikh
21106B1038
Sharvi Patil
21106B1043
Anmay Shetty
21106B1026
Sandeep Kurtadkar
21106B1029
Megha Panigrahi
21106B1030
 INTRODUCTION

Reliance Retail has been ranked as the
fastest growing retailer in the world.

It is ranked 56th in the list of Top Global
Retailers and is the only Indian Retailer to
feature in the Top 100.

It is the largest and the most profitable
retailer in India with the widest reach.
 COMPETITION
Direct Competition




D Mart
Apna Bazaar
V Mart
Star Bazaar
Broad Competition
Indirect Competition
 Amazon
 Big Basket
 Kirana Store
 Hawkers
 Restaurants
 Shopping
 PESTLE ANALYSIS OF RELIANCE RETAIL

POLITICAL :

Political instability

Changes in government laws(contract, taxation)

ECONOMIC :

Inflation rate

High interest rates

SOCIAL :

Spending power of consumer

Society conscious

TECHNOLOGICAL :

Technology is ever changing. The involvement of technology is effective in every business of
Reliance Industries limited. Be it retail and the improved ERP functioning, advance social media
marketing or be it advancements in telecom sector like 5G network and fibre net broadband. The
operations and supply chain are getting disrupted with advanced technology.

LEGAL :

There are strict laws that govern Reliance Industries’ business in every field. Labour laws which
protect basic rights of every labour including minimum wages are to be aligned with the
company’s legal framework. Environment protection laws for the manufacturing units and their
industrial waste disposal standards govern their overall activity.

ENVIRONMENTAL :

Reliance Industries Limited has diverse business. But each of those businesses, be it petroleum,
fashion retail outlet, agricultural products, foot ware have to be monitored in terms of its
environmental factors. The emissions that are given out into the air has to be regulated under the
norms prescribed by the government.
 PORTER'S FIVE FORCES
MODEL
Reliance Retail
Low BARGAINING POWER OF
SUPPLIERS:
• Large Number and size of suppliers
•Ununiqueness of each supplier's
product
•Company's ability to substitute is
lesser than their need to sale goods
BARGAINING
POWER OF
SUPPLIERS
High THREAT OF SUBSTITUTE
PRODUCTS:
•Large Number of substitute products
available
Buyer propensity to get options is high
and respected to price & quality
•Relative price performance of substitute
• Negligible Switching costs to customers
THREAT OF
NEW
ENTRANTS
RIVALRY
AMONG
EXISTING
COMPETITORS
THREAT OF
SUBSTITUTE
PRODUCTS
Moderate THREAT OF NEW ENTRANTS:
Barriers to entry
• Economies of scale (benefits of large scale)
• Low Brand loyalty will remove bottlenecks
• High Capital requirements (47265 cr- RR)
• Relaxed Government policies
• Low Switching costs
BARGAINING
POWER OF
BUYERS
High BARGAINING POWER OF BUYERS:
• Number of customers per year 2 million
& Size of each customer order on an
average is rs.3500
•Low Differences between Competitors
products
• Price sensitivity
• Buyer's ability to substitute
• Buyer's information availability is high
due to internet
• No Switching costs
RIVALRY AMONG EXISTING COMPETITORS
 Large Number of competitors- D-mart, V-mart,
shopper’s stop, big basket, amazon, future group,
Tesco ; others –multiple.
 Competitive advantage gain by competitors like
D-mart(makes difference by lesser price)
 Industry concentration –big competitors are just
4-5.
 Industry growth is high
 Quality differences are less
 Low Brand loyalty
 No Barriers to exit ; eg. big bazar
 Low Switching costs to buyers
 Overall industry is attractive ,
sustainable and growing
 BCG MATRIX

The Boston Consulting group's product portfolio
matrix (BCG matrix) is designed to help with long-term strategic
planning.

It provides a graphic representation for an organization to
examine different businesses in it’s portfolio on the basis of their
related market share and industry growth rates.
Model : Resource allocation model
Application : Strategic business units
Decision : In which SBU should you invest, divest, harvest, milk.
 BCG MATRIX
MARKET SHARE
HIGH
LOW
STARS
Invest
HIGH
CONSUMER ELECTRONICS
• Reliance digital
MARKET
GROWTH
• Reliance Trend
DOGS
Harvest
GROCERY
• Reliance fresh
QUESTION MARKS
FASHION AND LIFESTYLE
CASH COWS
Milk
LOW
Invest
7-ELEVEN
•
Convenience Store
 GENERAL ELECTRIC OR G MCKINSEY MATRIX

The GE / McKinsey matrix is a model used to assess the strength of a strategic business
unit (SBU) of a corporation.

It analyses market attractiveness and competitive strength to determine the overall
strength of an SBU.

The GE Matrix is plotted in a two-dimensional, 3 x 3 grid.

Model- Resource Allocation Model

Applicability- Product portfolio, SBU(Strategic Business Unit)

Decision- Harvest, Divest, Milk, Invest
Company
Market Attractiveness
Company's Strength
Size
Size
Growth
Growth
Reliance
Fresh
XL
M
Trends
XL
L
Ajio
XXL
XL
Hamleys
XL
L
Reliance
Jewels
L
S
Reliance
Smart
XL
L
Jiostore
XXL
L
Reliance
Digital
XXXL
XL
Reliance
malls
L
L
Footwear
XL
M
COMPANY STRENGTH
S
H
M
Trends
Ajio
Digital
W
Jiostore
MARKET ATTRACTIVENESS
3
2
1
Hamleys
Fresh
M
Footwear
Smart
5
4
6
Mall
Jewels
L
7
8
9
DECISION

Reliance Fresh- Harvest

Trends- Invest

Ajio- Invest

Hamleys- Harvest

Reliance Jewels- Divest

Reliance Smart- Harvest

Jiostore- Harvest

Reliance Digital- Invest

Reliance malls- Milk

Footwear- Milk
 PORTER’S GENERIC MODEL
Broad
Cost
Uniqueness
Cost Leadership
Reliance Smart
Reliance Digital
Differentiation
AJIO
Narrow
Stuck in middle
Cost focus
Differentiation focus
Trends
 INTEGRATION
Integration
Vertical
Forward
Horizontal
Backward
 VERTICAL INTEGRATION “ FROM FARM TO FORK”
Farmers
Backward Integration
Reliance Mandi’s
Reliance Retail Stores
(Reliance Smart)
Forward Integration
Customer
 HORIZONTAL INTEGRATION
Main
Company
Retail
Reliance
Retail
METRO
Cash &
Carry
Toy Retail
Cosmetics
&Beauty
Manufacturer
Food &
Beverage
Hamley's
Toys
Insight
Cosmetics
Lotus
Chocolate
Co.
CampaCola
 DIVERSIFICATION
Diversification is a growth strategy that involves entering into a new market or industry.
There are two types of Diversification
UNRELATED
DIVERSIFICATION
1.Related Diversification :- Related diversification occurs when a firm moves into a new industry that has important
similarities with the firm's existing industry or industries.
2.Unrelated Diversification :- Unrelated diversification: When a firm enters an industry that lacks any important similarities
with the firm's existing industry or industries.
Reliance Group
• Reliance started as a polyester company and later
diversified into energy, petroleum, retail, chemicals,
entertainment, telecom, mobile phones, and even
financial services.
RELATED
UNRELATED
Reliance Retail :- It has
Reliance Group :- It has
Acquire brands such as
Diversified it business in
Hamleys, 7-Eleven,
Trends Footware, Azorte,
Jio Mart, Reliance Smart
Various sectors such as
Chemicals, telecom, and
Even Financial Services
THANK YOU