RPG Spencer
By Rajesh Naidu
Abstract
RPG has unprecedented success in Agri retail largely owing to its effective Supply chain management is the key to success. Being a pioneer in Agri Retail in South India, it has created a niche for itself and formed entry barriers for other competitors till date. But the influx of deep pocketed industry giants into Agri retail may side step these barriers a pose a threat of slipping its market share. Given the scenario the head honchos are in a dilemma in finalising the strategy which would retain the edge even in the future. Expansion into North India market through replication of their successful model of Agri retail would be a very crucial part of their strategy. In this context the case is analysed and a few suitable strategies are suggested to survive and flourish in a competitive world.
Introduction
Organised retailing may have not set its foot firm in metros and other major cities yet, but Corporate India is already firming up concrete plans to tap the Rs. 10 trillion retail markets with innovative products and business models. Expansion and entry of new players into this emerging sector has intensified competition. Bharti-Wal-Mart joint venture, for example, plans to invest substantially in the next 2-3 years for establishing supply chain network in rural India. Reliance Retail's Rural Hubs (procuring-cum-processing hub & one-stop farmer shop) has plans for Punjab, Maharashtra, West Bengal, Andhra Pradesh and Gujarat. Pantaloons also plan a similar procuring-cum-processing hub for setting up farm input malls in rural areas. A few others are already off the block. DCM Shriram launched its Hariyali Kisan Bazar in 2002 in Punjab, Haryana, Rajasthan, Madhya Pradesh, Uttar Pradesh and Uttarak ...