REVIEW OF LITERATURE

Project Title: Analysis of Expansion and Diversification in Retail Business (Special reference to Davangere City) Introduction
The Indian retailing landscape has become increasingly competitive and one means of ensuring the long-term survival of a retail firm is through the attainment of competitive advantage. Competitive advantage is at the heart of a firms performance in the competitive market. It grows fundamentally out of the value a firm is able to create for its buyers that exceed the firms cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price (Porter, 1985). Today many retailers are searching opportunities for growth, but how and where should they look? Many business let competitors set the parameters of their strategic thinking. They compare their strengths and weaknesses with those of their competitors and focus on building advantage. Retail business seeks growth through retaining and expanding their customer bases this offer leads to greater assortment and offerings to meet customer needs. This project report gives information related to how the retail sector taking step towards expansion and diversification of retail business, what are the factors that influencing, People life style(based on usage of products and services) and what is present market situation in retailing. Here I would like to conduct interview (Sample size) to 50 retail outlets which include single branded and multi branded retail.

Retail industry in the world is one of the big sector and rapidly growing, in this sector millions of people working. When we come to Indian retail sector here most of retail businesses are operating with having a palm stores, strip centers, departmental stores, fashion stores and specialty stores. With these its slowly putting steps towards expansion and diversification. Retail business takes steps towards growth when there is increase in profit and demand for the different product and services. To take these steps retailer should identify customer needs and wants, he should analyse the market situation and he should know the financial capabilities. By reviewing the unique options that drive profit and growth, the "right strategy" can be conceived using retail strengths to develop opportunity that increases cash flow and value.

In most circumstances, options exist to reduce costs, build recurring revenue streams, make business expansion into a market leadership position and gain competitive advantage and to develop stronger profits and market share, any of which equate to higher business valuation.

REVIEW OF LITERATURE
Porter (1985) identified that competitive advantage is at the heart of a firms/ businesss performance in the competitive market. Strategy is the route to attain a competitive advantage that will determine a firms performance. Competitive advantage can be attained by those firms/businesses that make themselves more attractive to the customers than the competitors and establish a strategic position in the market place. In the year 2001, Ellis and Kelly demonstrated that the concept of competitive advantage can be utilized to assist retailers in todays volatile environment. The applicability of the same was discovered in the Indian retail sector by Shah and Mehta (2007), who identified that with the retail sector clocking impressive growth and catching up the worlds imagination, the Indian retailers were striving hard to attain some king of competitive advantage.

What the Retail giants hold

Serial No.
1

Company

Description
A subsidiary of Sunil Mittals Bharti Enterprise, Bharti Retail operates Easy Day chain of stores. It has 170 stores, including supermarkets and hypermarkets. Bharti also operates cash-and-carry business with Walmart stores. A part of the RP-Sanjeev Goenka group, Spencers runs 200 stores. The retail arm of the cement-to-textiles Aditya Birla Group, it runs the More chain of stores 586 of them are in place. It includes Trent, which runs Westside and bookshop chain Landmark, electronics mega store Croma, watch store Titan and jewelry chain Tanishq. A subsidiary of Mukesh Ambanis Reliance Industries, it opened 90 new stores this year. Its arm Reliance Digital retails electronics.

Bharti Retail

2 3

Spencers Aditya Birla Retail

Tata Retail

Reliance Retail

Future Group

Kishore Biyanis Future Group owns Pantaloon Retail, the countrys largest retail chain by market value, and the Big Bazaar chain of hypermarkets.

Pantaloon going to expansion its business: Currently, the company has 16million sqft of retail space across its formats. Looking at a weak consumer sentiment and a cash crunch, the company might relook at its expansion plans going ahead, there is a rationalization in that, says Sangeetha Tripathi, senior equity analyst with Sharekhan Ltd. Shopper stop, the largest operator of department store, does not think it has to scale back its plans due to a slowdown in consumer demand. There is a slowdown, but we dont see it impacting our expansion plans, Govind Shrikhande managing deirector, Shoppers Stop Ltd, told to Business Standard paper. In the December quarter, the company has seen a one per cent drop in LTL sales growth.

Caf Coffee Day (CCD) is going Diversify in food sector: The Caf Coffee Day (CCD), which has 1,200outlets, is looking to strengthen its food services at a time when the caf culture is set to explode in India with the entry of new players. CCD parent Amalgamated Bean Coffee Trading Company Limited, which recently hired Sanjiv Mediratta, who had earlier worked with Yum and McDonald. He has now been given the responsibility of reengineering the menu at outlets as part of the companys role as group adviser, food & beverages.

Online Retailing: In the world retail sector is rapidly emerging with the help of online. After enjoying a few drinks, some people go dancing. Others order food. And for some, its time to shop online. Online retailers, of course, can never be sure whether customers are inebriated when they tap the checkout icon one comparison-shopping site, Kelkoo, said almost half the people it surveyed in Britain, where it is base, had shopped online after drinking. But while reliable data is hard to come by, retailers say they have their suspicions base on anecdotal evidence and traffic patterns on their Web sites-and some are adjusting their promotions accordingly. Boom time for online kids retail in India: Payal Shah, a 12-year-old student from Mumbai, is the reflection of her parents when it comes to shopping. Clued into the latest fashion and a brand conscious teenager, she like her parents, seeks pleasure in retail therapy in the online world. Reasons such as these and the rising media exposure, high disposable income of the parents, peer pressure, growing fashion and brand consciousness among children are driving the growth of kids apparel market in the country. The growth is also evident from the sales of some of the portals specializing in

kids products. According to an Assocham study, the Indian kids-wear market is growing at a compounded annual growth rate of about 20 per cent and is likely to reach Rs. 80,000 crore by 2015.

The Caf Coffee Day (CCD), which has 1,200outlets, is looking to strengthen its food services at a time when the caf culture is set to explode in India with the entry of new players. CCD parent Amalgamated Bean Coffee Trading

Objectives of the Study:

1) To examine the retail sector growth and opportunities. 2) To study how retail sector searching for growth and where should they look. 3) To identify the major factors that influencing to growth and diversification of retail sector. 4) To study the why some retail business are able to sustain high growth in revenue and profits and other are not. 5) To know the present market situation for growth and diversification of retail business. 6) To identify the major changes in retail sector. 7) To study what is impact on customer by retail business.