COMPANY PROFILE

Future Group India, established in 1994 in order to provide diverse services in India and Global markets. It has several retail chain:PANTALOONS,BIG BAZAAR, FOOD BAZAAR, etc. Their Headquarters are located in Mumbai. Their employee strength covers over 30,000 people. Future Group is located in 61 cities & in 65 rural areas in India.

CEO of Future Group

The CEO of Future Group is Mr. Kishore Biyani.

VISION OF FUTURE GROUP

The vision of Future Group is to, deliver everything, everywhere, everytime to every Indian consumer in the most profitable manner

MISSION OF FUTURE GROUP

Future Group will be the trendsetters in evolving delivery formats. They shall infuse Indian Brands with confidence and renewed ambition. They will be efficient, cost-conscious, committed to quality in whatever they do. Their success will lie on positive attitude, sincerity, humility, united determination.

BOSTON CONSULTING GROUP (BCG) MODEL

BOSTON CONSULTING GROUP (BCG) MATRIX is developed by BRUCE HENDERSON of the BOSTON CONSULTING GROUP IN THE EARLY 1970s. According to this technique, businesses or products are classified as low or high performers depending upon their market growth rate and relative market share.

THE BCG GROWTH-SHARE MATRIX

It is a portfolio planning model which is based on the observation that a companys business units can be classified in to four categories: Stars Question marks Cash cows Dogs

It is based on the combination of market growth and market share relative to the next best competitor.

STARS
High growth, High market share

Stars are leaders in business. They also require heavy investment, to maintain its large market share. It leads to large amount of cash consumption and cash generation. Attempts should be made to hold the market share otherwise the star will become a CASH COW.

CASH COWS
Low growth , High market share
They are foundation of the company and often the stars of yesterday. They generate more cash than required. They extract the profits by investing as little cash as possible They are located in an industry that is mature, not growing or declining.

DOGS
Low growth, Low market share
Dogs are the cash traps. Dogs do not have potential to bring in much cash. Number of dogs in the company should be minimized. Business is situated at a declining stage.

QUESTION MARKS
High growth , Low market share
Most businesses start of as question marks. They will absorb great amounts of cash if the market share remains unchanged, (low). Why question marks? Question marks have potential to become star and eventually cash cow but can also become a dog. Investments should be high for question marks.

G.E. 9-Cell Matrix

Dimensions: Long-term industry attractiveness Business strength/Competitive position

SBUs plotted as circles with area proportional to the size of the industry, & a sector within each circle representing the SBUs market share in its industry

GE 9-Cell Matrix
Business Strength/Competitive Position
Strong Average Weak

Long-Term M Industry Attractiveness

L

Strategic Implications of the G.E. 9Cell Matrix

SBUs in 3 upper left cells get top investment priority
SBUs in 3 middle diagonal cells merit steady investment to maintain & protect their industry positions

SBUs in 3 lower right cells are candidates for harvesting or divestiture

Advantages of G.E. 9-Cell Matrix

Allows for intermediate rankings between high & low and between strong & weak

Incorporates a wider variety of strategically relevant variables than the BCG matrix
Stresses the channeling of corporate resources to SBUs with the greatest potential for competitive advantage & superior performance

Michael Porters
Five Forces Model

Porters Five Forces

Porters Five Forces

* Threat of Entry * Bargaining Power of Suppliers * Bargaining Power of Buyers * Development of Substitute Products or Services * Rivalry among Competitors

Barriers to Entry
large capital requirements or the need to gain economies of scale quickly. strong customer loyalty or strong brand preferences. lack of adequate distribution channels or access to raw materials.

Power of Suppliers
high when
* A small number of dominant, highly concentrated suppliers exists. * Few good substitute raw materials or suppliers are available. * The cost of switching raw materials or suppliers is high.

Power of Buyers
high when
* Customers are concentrated, large or buy in volume . * The products being purchased are standard or undifferentiated making it easy to switch to other suppliers. * Customers purchases represent a major portion of the sellers total revenue.

Substitute products
competitive strength high when
* The relative price of substitute products declines . * Consumers switching costs decline. * Competitors plan to increase market penetration or production capacity.

Rivalry among competitors

intensity increases as
* The number of competitors increases or they become equal in size. * Demand for the industrys products declines or industry growth slows. * Fixed costs or barriers to leaving the industry are high.

A model that attempts to explain the competitive advantage some nations or groups have due to certain factors available to them. The Porter Diamond is a model that helps analyze and improve a nation's role in a globally competitive field. The model was developed by Michael Porter, who is recognized as an authority on company strategy and competition; it is a more proactive version of economic theories that quantify comparative advantages for countries or regions.

Porters Diamond
Competitive Advantage for Countries

Firm strategy, structure and rivalry

Factor conditions

Demand conditions

Related and supporting industries

Cont..
In the early 1980s, U.S. industry saw its economic competitiveness eroded by Japanese and European competitors. Porter concluded that classical international trade theories, which mainly focused on slowly changing, inherited variables such as natural resources, climate, size of working population, etc., could only partially explain why nations gain competitive advantage in a given industry. This observation initiated a four year study of ten major trading nations and 100 industries that covered 50% of total world exports in 1985.

Porters Diamond of competitive advantage model

FACTOR CO DEMAND DEMAND CONDITIONS RELATED AND SUPPORTING INDUSTRIES FIRM STRATEGY, STRUCTURE, AND RIVALRY CHANCE EVENTS GOVERNMENT

Strategic Choice
Strategies for Growth and Diversification

Identifying Growth Strategies

Define the industry Analyze options for growth

What Is Our Future Group Industry is ?

Defining the industry in new ways can present new opportunities. Examples:
Bigbazar Pantaloon

Business-Level Strategies For Growth

Product/Service
Existing Market Penetration Strategy New Product Development Strategy

Existing Domain (i.e., Industry Market New

Market Development Strategy

Diversification Strategy

Product/Market Expansion: Scale Strategies

Market Penetration
Goal: increase market share
Low risk/marginal returns Every business does this

Market Development
Goal: find new markets Marketing expertise Mature products/services

Product/Market Expansion: Scope Strategies

Product Development
Goal: develop & introduce new products/services Technical expertise Growth of products/services (Could Entail Related Diversification)

Diversification
Goal: develop & introduce products/services to new or emerging markets (Most likely Unrelated Diversification)