African Journal of
Marketing Management

  • Abbreviation: Afr. J. Mark. Manage.
  • Language: English
  • ISSN: 2141-2421
  • DOI: 10.5897/AJMM
  • Start Year: 2009
  • Published Articles: 153

Full Length Research Paper

Information technology in Indian retailing, issues and challenges (A case study on the rise and fall of Subhiksha Retail Chains)

Ponduri, S. B.*
  • Ponduri, S. B.*
  • Department of Management Studies, Mahaveer Institute of Science and Technology, (Affiliated to JNT University, Hyderabad) Vyasapuri, Bandlaguda, Hyderaabd.500 005, India.
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V. Sailaja
  • V. Sailaja
  • Department of Management Studies, Mahaveer Institute of Science and Technology, (Affiliated to JNT University, Hyderabad) Vyasapuri, Bandlaguda, Hyderaabd.500 005, India.
  • Google Scholar


  •  Received: 06 August 2013
  •  Accepted: 06 May 2014
  •  Published: 31 July 2014

Abstract

Organized retailing in India has reached a point of transformation after witnessing unprecedented growth over the last few years. It has lot of potential for further growth and for penetrating into semi urban and rural markets. Opportunities for retailing are increasing day by day due to changing customer behaviour, technological developments and modified regularities by allowing more than 51% FDI’s in retail sector. India is a palace for all sizes, varieties and formats of retail sector. The country is a mosaic of wide diversity-urban, rural, rich and poor customer base. Technological advancements have witnessed phenomenal growth in retailing over the past few years. On the other hand, adoption of information technology (IT) in retail business should be largely cautious, incremental and supportive of the conventional operational functions rather than being drastic for successful implementation. The current study is on Subiksha retail chain’s raise after expansion with significant reach across country-wide with the application of IT and fall arising out of rapid expansion resulting in insufficient funds. Subhiksha has made a grand entry into retail sector a decade earlier when the sector was on a boom but hit hard by the global financial crisis during 2008for further expansion. The authors have collected data by means of observation and interviewing customers of various retail outlets at different parts of Hyderabad and Secunderabad. To support the primary data secondary data is also collected from newspapers, journals, websites, books and articles. The causes of failure that are identified are lack of skilled personnel, know-how, poor implementation, coordination and improper allocation of funds.

Key words: Retail sector, information systems, point of sale, SAP, enterprise resource planning (ERP).