E.Schrodinger and the First Store in India
The caselet is about an international retail chain, E.Schrodinger, planning an entry into Arcadia, a city in northern India. The company has identified seven prospective location sites and Rohit, the Vice President, Real Estate, had to recommend to the company its first location in the country. The company’s most operated and favored was the hypermarket. The location of the first store was a crucial decision from the company’s perspective since the right location would give the right head start to the company and set the foundation for future location decisions.
The location decision must take into account several issues, including convenience to customers and the company’s revenue and profitability goals. The caselet deals with analyzing factors, both qualitatively and quantitatively, both at the city and site level to help choose the right location for the first store.
Expected Learning Outcomes
Retail location strategy has two dimensions:
- • Which city to enter?
- • Which site in the city should the store be located in?
This caselet caters to the second dimension. Therefore, the objective of the caselet is to highlight the process and the main decision areas that need to be focused upon to identify the location for a retail store.
In general, the teaching objectives include:
- • Familiarize about the importance of location decisions in retail
- • Outline the process of identifying the right location keeping in mind customer requirements as well as organizational goals
- • Familiarize with various approaches to location choice and the merits and demerits of each
- • Understand the role of exogenous factors like competition, infrastructure, etc., on location decisions
- • Discuss Huff ’s law of retail location
Case Positioning and Setting
The caselet may be used in MBA Programs – elective course in Retail Management for a module on – location planning and site selection. The caselet can also be used in an Executive MBA Program to discuss site selection.
- I. Why is location critical for profitability of stores? How does it affect the food and grocery formats especially hypermarkets?
- II. What are the factors that the company must consider while taking the decision?
- III. What approaches retailers to identify location have traditionally used? What are their merits and drawbacks? Therefore, which of the available methods should the company use to identify a suitable location?
- IV. ...............