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An assignment on the topic of analysis of competitive position of bhatbatteni super market in

Submitted by

Durlav kumar Chaudhary

Submitted to

Dilli Parsad Bhattarai

Date : July16 2020

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1. Introduction

As Nepal’s largest retail chain, Bhat-Bhateni offers a range of 150,000 products from 1,000 local
and international suppliers. Ranging from groceries and fresh produce; cosmetics and toiletries; a
broad range of international liquor; to an extensive choice of kitchenware, clothing, sporting
goods, toys and electronics, Bhat-Bhateni is committed to providing products of the highest
quality, for the best prices.

Having seen a meteoric growth over the past 35 years, Bhat-Bhateni remains committed to
improving the shopping experience for its patrons and expanding its store locations in the
country. To that end, Bhat-Bhateni will be unveiling 4 new supermarkets in 2019. Bhat-Bhateni
also maintains the long-term goal of establishing farmer co-operatives in Nepal to source its
fresh produce which will give employment to 50,000 people and likely position Bhat-Bhateni as
the largest corporate tax payer in the country.

Bhat-Bhateni continues to be a leader in corporate responsibility and employment opportunity. It

2. Porter's five forces

There are more than 1000 small retail and wholesale that supply similar kind product to Bhat
Bhateni. Nepal Bazaar is the oriy one cormemor, but other three malls such, Gorkha Department
stores and Central mall plaza is opening (The Himalayan Titles, 2018). Bhat Bhateni buys every
-thing in bulk. so they have high bargaining power. Everything on Bhat-Bhateni is fixed price, so
no bargaining.

1. Bargaining power of customers

 Less bargaining power interms of supermarket.

 Fixed price paid by customers.

 Consumers choose different product freely.

 Customers are able to exert

 Pressure to drive down prices

E.g. supermarket business is increasingly dominated by a small number of large retail

2. Competitive rivalry within an industry

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 High competitors.

 Bhatbhateni got more competitorthat offer similar kind of products.

 Competitors compete by reducing prices in order to maximize their sales volume

 Other competitors are compel to follow such kind of strategy

 If there is intense rivalry in an industry, it will encourage businesses to engage in

 Price wars (competitive price reductions),

 Investment in innovation & new products

 Intensive promotion (sales promotion and higher spending on advertising)

 All these are likely to increase costs and lower profits

3. Threats of entrants

 It is high in the present scenario.

 FDI is very favorable which encourage the supermarket to open their business.

 The government policy is liberal that allow the entry of new super market.

 The access to distribution channel is also very easy.

 If new entrants move into an industry they will gain market share & rivalry will
intensify

 The position of existing firms is stronger ifthere are barriers to entering the market

 If barriers to entry are low then the threat of new entrants will be high, and vice versa

4. Threat of substitute products.

 The tendency in retail is not to specialize in one good or service, but to deal in a wide
range of products and services.

 This means that what one store offers you will likely find at another store.

 Retailers offering products that are unique have a distinct or absolute advantage over
their competitors.

 A substitute product can be regarded as something that meets the same need

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 Substitute products are produced in a different industry -but crucially satisfy the same
customer need

 If there are substitutes to a firm’s product, they will limit the price that can be charged
and will reduce profits

5. Bargaining power of suppliers

 The bargaining power of suppliers is also described as the market of inputs.

 Suppliers of raw materials, components, labour, and services to the firm.

 Supplier can have supreme power over the film when there are few substitutes.

 If a firm’s suppliers have bargaining power they will: Exercise that power Sell their
products at a higher price Squeeze industry profits

 If the supplier forces up the price paid for inputs, profits will be reduced

 The more powerful the customer (buyer) the lower the price

For ex: If you are making biscuits and there is only one person who sells flour, you have no
alternative but to buy it from them.

3. Conclusion

As Bhat Bhateni is leading supermarket and departmental store, despite 01 being that. it has not
been able to inpiement cost leadership strategy as a major strategy. However, its overall
performance can be seen excellent in terms of market expansion in conpared with its
competitors. In Itahari, its market cannot be determined as it has recently been established. In
coming days. this market is 90an to be huge as Itahari is not just the second largest city.

Taking this point seriously. Itahari is going to be a hub center of the whole eastern region. People
want goods at a cheaper price, so it Bhat Bhateni be able to supply goods at a cheaper rate
implementing cost leadersh'p strategy than those of wholesaler and Jogbani bazaars market may
become null.

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Reference

https://www.bbsm.com.np/welcome-to-bbsm/

Basnet. B. (2018) Bhatbhateni in Bcratnagar generatestransactions 0111*. 100 million. Inheadlme.com.

Bhat-Bhateni Supermarket and Departmental Store. (n.d.) Clubcard [online]. [Accessed 16 May 2018].
Available at: <http://www.bbsm.com.np/product/>

Bhat-Bhateni Supermrket and Departmental Store. (n.d.). Facalities Overview [online]. [Accessed 16
May 2018]. Available at: <ht -;//www bbsm.com.np/customer-service/facilities-overview/>

Bhatbhateni Supermarket and Department Store. (n.d.) Expansion plans [online].[Accessed17may2018].

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