Brief Profile of Speaker:
Dr. Srinivas Gunta, Assistant Professor, Indian Institute of Management Indore
As the topic of the event was Strategic Management and its significance, so the event also started with a brief explanation of Strategic Management and its significance in real life. While explaining the significance he connected some real-life examples which helped us to understand it very easily. He gave the example of Walmart and D Mart and explained how they are following the EDLP (Everyday Low Price) strategy. And we also came to know that Walmart first started the EDLP strategy. Sir also explained us about why Walmart is a success in USA and not in other countries. Then he also shared his real-life experience of travelling to the USA and knowing more about Walmart. Then we also came to know that USA does not follow MRP strategy but they follow MSRP (Manufacturer’s Suggested Retail Price) strategy. Then he clearly explained what are the cost heads in retail stores and what steps they follow to reduce the cost. For example, the store will be situated in a rural area to reduce the cost of rent. Walmart also follow “No Questions Asked Return Policy”. Walmart also follows the concept of “Occupancy of 60 % on back head of trucks”, which means the trucks which will carry goods from the warehouse to the store and while returning back to the warehouse they will pick goods from the suppliers and will carry back those goods to the warehouse. Walmart do not buy more than 20 % of the goods from a single supplier which reduces the bargaining power of the supplier. He also explained Porter’s Five Forces with a diagram and with an example of Liquor Industry and then explained briefly that why Big Bazaar was a failure. The lecture ended with the example of Kingfisher Airlines.
- Bargaining Power of Suppliers
2. Threat of Substitutes
3. Threat of New Entries
4. Existing Rivalry
5. Bargaining Power of Buyers
Learnings from the event:
i. Strategic Management
iv. Strategies of D Mart and Walmart
vi. Concept of Wardrobing
vii. Store Credit offered by Walmart
viii. Porter’s Five Forces
ix. Why Big Bazaar was a failure?
x. Why Vijay Mallya went into Airline Industry?
xi. Why Vijay Mallya bought Deccan Airlines?
xii. Never judge a strategy by its success or failure.
Feedback from students:
They were very excited and interactive as they came across many concepts that will help them in future. And as the examples were more so it was easy for them to understand.