Harvard Case - Student Biryani: Glory to Glitches in a Global Journey
"Student Biryani: Glory to Glitches in a Global Journey" Harvard business case study is written by Ali Raza, Amira Khattak, Nabeel Nisar, Kanwal Iftikhar. It deals with the challenges in the field of Strategy. The case study is 8 page(s) long and it was first published on : Feb 24, 2020
At Fern Fort University, we recommend Student Biryani adopt a hybrid growth strategy that leverages its strong brand and operational expertise in India to expand internationally while simultaneously exploring strategic alliances and acquisitions to enhance its global reach and product offerings. This strategy will focus on building a robust, scalable business model that prioritizes quality, consistency, and customer satisfaction while navigating the complexities of international markets.
2. Background
Student Biryani is a successful Indian biryani chain facing a critical juncture in its growth journey. Founder and CEO, Rajeev, envisions global expansion, but the company faces challenges in maintaining its unique brand identity and operational efficiency amidst international competition. The case highlights the complexities of scaling a successful business model across diverse markets, navigating cultural differences, and managing operational challenges.
The main protagonists are Rajeev, the visionary CEO, and his team, who are grappling with the strategic decisions needed to take Student Biryani to the next level.
3. Analysis of the Case Study
To analyze Student Biryani's situation, we can utilize a combination of frameworks:
1. Porter's Five Forces:
- Threat of New Entrants: The biryani market is relatively fragmented, but the entry of international fast-food chains and local competitors poses a threat.
- Bargaining Power of Buyers: Customers have a moderate bargaining power, as they have multiple options available. However, Student Biryani's strong brand loyalty can mitigate this.
- Bargaining Power of Suppliers: The bargaining power of suppliers (ingredients, packaging, etc.) is moderate, as Student Biryani can leverage its scale to negotiate favorable terms.
- Threat of Substitutes: Other cuisines and food delivery services offer potential substitutes, requiring Student Biryani to constantly innovate and maintain its competitive edge.
- Competitive Rivalry: The biryani market is highly competitive, with numerous local and regional players.
2. SWOT Analysis:
Strengths:
- Strong brand recognition and loyal customer base in India
- Unique and flavorful biryani recipe
- Efficient and scalable operations
- Experienced management team
- Strong focus on quality and customer service
Weaknesses:
- Limited international experience
- Potential challenges in replicating the Indian taste and experience abroad
- Dependence on a single product line
- Vulnerability to supply chain disruptions
Opportunities:
- Growing demand for Indian cuisine globally
- Potential for strategic alliances and acquisitions
- Expanding into new markets and product categories
- Utilizing technology and digital platforms for marketing and operations
Threats:
- Increasing competition from international and local players
- Cultural differences and adaptation challenges in new markets
- Economic fluctuations and political instability
- Supply chain disruptions and rising costs
3. Value Chain Analysis:
Student Biryani's value chain consists of the following key activities:
- Inbound Logistics: Sourcing high-quality ingredients, managing supply chain logistics, and ensuring consistent quality.
- Operations: Preparing and cooking biryani, maintaining hygiene standards, and ensuring efficient production processes.
- Outbound Logistics: Delivering food to customers through various channels, including dine-in, takeaway, and online ordering.
- Marketing and Sales: Building brand awareness, promoting products, and attracting new customers.
- Customer Service: Providing excellent customer experience, resolving complaints, and building loyalty.
4. Business Model Innovation:
Student Biryani can explore business model innovation to adapt to the global market:
- Franchising: Partnering with local entrepreneurs to expand into new markets while maintaining brand consistency.
- Strategic Alliances: Collaborating with local food delivery platforms and restaurant chains to leverage their existing infrastructure and reach.
- Product Diversification: Introducing new menu items and catering options to appeal to a wider audience.
- Technology Integration: Utilizing digital platforms for online ordering, customer engagement, and data analytics.
4. Recommendations
Based on the analysis, we recommend the following:
1. Hybrid Growth Strategy:
- International Expansion: Student Biryani should focus on expanding into key markets with high demand for Indian cuisine, such as the United States, the United Kingdom, and the Middle East.
- Strategic Alliances and Acquisitions: Explore partnerships with local restaurant chains or food delivery platforms to gain access to existing infrastructure and customer base.
- Product Diversification: Introduce new menu items, such as vegetarian options, fusion dishes, and catering services, to cater to diverse palates.
2. Build a Scalable Business Model:
- Standardization: Develop standardized recipes and operational processes to ensure consistency across all locations.
- Technology Integration: Invest in technology for online ordering, inventory management, and data analytics.
- Supply Chain Management: Establish a robust supply chain with reliable suppliers to ensure consistent ingredient quality.
3. Focus on Brand Management:
- Maintain Brand Identity: Ensure that the brand identity and experience remain consistent across all markets.
- Local Adaptation: Adapt the menu and marketing strategies to cater to local preferences and cultural sensitivities.
- Customer Feedback: Actively seek customer feedback to continuously improve products and services.
4. Embrace Digital Transformation:
- Online Ordering: Develop a user-friendly online ordering platform and leverage social media for marketing and customer engagement.
- Data Analytics: Utilize data analytics to understand customer preferences, optimize operations, and personalize marketing efforts.
- Technology Partnerships: Collaborate with technology providers to develop innovative solutions for delivery, payment, and customer service.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: Leveraging Student Biryani's existing strengths in brand recognition, operational efficiency, and quality ingredients.
- External Customers: Catering to the diverse needs and preferences of international customers.
- Competitors: Staying ahead of the competition by offering unique products, excellent service, and a strong brand experience.
- Attractiveness: Evaluating potential markets based on market size, growth potential, and profitability.
6. Conclusion
Student Biryani has a strong foundation for global success. By adopting a hybrid growth strategy, focusing on operational excellence, and embracing digital transformation, the company can navigate the challenges of international expansion and establish itself as a leading player in the global biryani market.
7. Discussion
Alternatives:
- Organic Expansion: Opening new locations organically without partnerships or acquisitions. This approach would be slower and require significant investment in infrastructure and marketing.
- Focus on Domestic Market: Concentrating on expanding within India and leveraging the existing customer base. This approach would limit growth potential and potentially miss out on global opportunities.
Risks:
- Cultural Adaptation: Challenges in adapting the brand and menu to local preferences and cultural sensitivities.
- Competition: Intense competition from established players in international markets.
- Operational Challenges: Maintaining quality and consistency across multiple locations.
Key Assumptions:
- The global demand for Indian cuisine will continue to grow.
- Student Biryani can successfully adapt its brand and operations to international markets.
- The company can secure funding and partnerships to support its growth strategy.
8. Next Steps
- Market Research: Conduct in-depth market research to identify potential target markets and assess competitive landscape.
- Pilot Launch: Launch pilot locations in select international markets to test the brand and operations.
- Strategic Partnerships: Identify potential partners for strategic alliances and acquisitions.
- Technology Implementation: Develop and implement technology solutions for online ordering, inventory management, and data analytics.
- Brand Management: Develop a comprehensive brand strategy for international expansion, including marketing campaigns and customer engagement initiatives.
By taking these steps, Student Biryani can successfully navigate the challenges of global expansion and achieve its goal of becoming a global biryani brand.
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Case Description
In June 2016, Mohammad Arif, the director of Student Biryani, seemed depressed about the all-time low performance of the franchise in Canada. Hard work and persistence not only enabled the company to become Pakistan's first and largest Pakistani food chain but also to establish a presence in global markets such as Saudi Arabia, Dubai, Oman, and Australia. But the all-time low performance of the Canadian outlet had put severe pressure on Arif because the brand image was at risk. Arif convened an urgent meeting with the management team. The meeting continued for three hours, but members seemed divided and the meeting was adjourned for the next day. Arif needed to find the causes of the problem and how to cope with them.
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