“Fab India’s” main customer “Habitat” (an interior design firm in U.K) was acquired by a larger firm that abruptly ended habitat relationship with Fab India.
Trust- Biggest challenge for Fab India, as most of the suppliers was from rural areas & likely not very well educated- there were no written contract between them that governed supplier behavior.
Internal issues –
Achieving target revenue of Rs 8.6 billion, additional capital requirement:- Potential shortage of qualified personnel to power the growth - Hire larger no of people but it was difficult to find “like minded” individuals with the same working passion. increasing rental rates uncertainty in supply -One major issue that the management faces is the supply side bottleneck
Supply chain & Logistics- was also a big challenge because was plagued with transports, storage and shelf- life issues that were endemic to food and ensuring that stores received what the consumers have ordered in a timely manner. External issues-
Threat from new retail chains- competitive landscape was rapidly changing
(Macy’s or Neiman Marcus or Discount retail store i.e. Target or Wal-Mart could enter the Indian market. Fab India can face stiff competition as these companies are backed by powerful Indian companies such as TATA GROUP, ITC& RELIANCE. Especially in small towns fab India can face Competition from mom & pops stores, local communities and tailors.
The major challenge confronting William Bissell is to keep the growth trajectory aligned with their primary commitment to rural development
Fab India also faces an indirect challenge from the opening of foreign single- brand stores in the apparel segment.
Uncertainty in supply - One major issue that the management faces is the supply side bottleneck.
Supply chain & Logistics- was also a big challenge because was plagued with transports, storage and shelf- life issues that were endemic to food and ensuring that stores received what the