Royal India food retail: struggling to stay fresh
Publication date: 21 September 2016
Abstract
Subject area
Strategic management.
Study level/applicability
Entry-level post-graduate management students at an MBA program; middle-level professionals in an executive management program.
Case overview
Royal India Food Retail (RIFR) is an organized food retailer, head-quartered in Delhi, India. The firm has established 180 outlets across the three Indian states of Delhi, Chandigarh and Punjab, selling fruits and vegetables, full-range of staples, grocery items and essential non-food items and fast-moving consumer good products. Since its inception, RIFR has been making losses, owing to both unfavourable external conditions and poor strategic management. In 2014-2015, RIFR reported earnings before interest, tax, depreciation and amortization (EBITDA) loss of Rs 46m as against Rs 276m in 2013-2014 and Rs 346m in 2012-2013. This case examines the problems of RIFR, against the backdrop of an unfavourable industry structure and the need for astute decision making, and poses the question of what the next step for RIFR should be.
Expected learning outcomes
Developing a clear understanding of the business environment; understanding the challenges faced by businesses in emerging markets; highlighting the dynamics of a volume-driven vis-à-vis a margin-driven approach to business strategy; and the importance of resources as critical elements of strategy development.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 11: Strategy.
Keywords
Acknowledgements
Aman Jhaveri would like to express his gratitude to Dr Shashank Shah, Post Doctoral Researcher, Harvard Business School and Project Director at Harvard’s South Asia Institute for his guidance through the course of writing this case study. The authors humbly dedicate this endeavour to Sri Sathya Sai Baba, Founder Chancellor, Sri Sathya Sai Institute of Higher Learning.
Citation
Jhaveri, A. and Anantharaman, A. (2016), "Royal India food retail: struggling to stay fresh", , Vol. 6 No. 3. https://doi.org/10.1108/EEMCS-03-2016-0032
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited