Reinventing The Value Chain
...Retail sector 5
2.2 Indicators that point to a promising growth in the retail sector 6
1) Penetration of organized retail in India 6
2) A.T. Kearney's Global Retail Development Index (GRDI) 6
2.3 Developments in India 8
2.4 Retail: In the backdrop of Global Trends 9
3 VALUE CHAIN 11
3.1 Understanding the value Chain 11
3.2 Metrics used in Retail 12
3.3 Value chain analysis 13
3.4 Value creation vs. Value extraction 14
3.5 Unlocking the potential of the value chain 15
4 NEW PARADIGMS IN THE VALUE CHAIN 16
4.1 Lean retailing 16
4.2 RFID Technology 17
4.3 Other enablers of "Value Creation" 18
1) Supply Chain Integration 18
2) Global Sourcing 18
3) Information technology 19
4) Transportation efficiencies 19
5) Bundling 20
4.4 The unending quest 20
5 CUSTOMER CENTRIC MARKET ORGANIZATIONS 21
5.1 Introduction 21
5.2 Information age 21
5.3 Nine Rules of customer behaviour 22
5.4 Internet culture and customer-centricity 23
6 CONCLUSION 24
APPENDIX I: PORTER'S VALUE CHAIN ANALYSIS 25
REFERENCES 26
1 EXECUTIVE SUMMARY
The retail sector in India is set to explode. India has topped A.T. Kearney's global retail development index for three consecutive years. The consumer confidence survey conducted by AC Nielsen's clearly reflects the buoyant mood of the Indian consumer. With consumers now accepting western retail practices and the government's encouraging policies, players like Wal-Mart have announced their presence in India. Specialty stores in India are going to increase in number. With the arrival of the organized retailing sector and increased competition, comes the quest to increase efficiencies inorder to gain a competitive advantage.
Value addition has become the anthem of the modern business setup. Value extraction is the traditional approach in which a player in the supply chain gains advantage, by cost-cutting or any other way,...
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