sajm






Future Retail vs. Amazon: The Retail Slugfest

V S Pai*

DOI: https://doi.org/10.62206/sajm.31.2.2024.147-160

PUBLISHED :30 AUG 2024

Abstract

Kishore Biyani, the promoter of the company, having a keen understanding of consumer aspirations and observing the underdeveloped state of organized retail in the country, strategized to take Future Retail to an enviable position in the industry. His company faced challenges due to the excessive level of debt taken to sustain growth commensurate with his ambition. Faced with mounting payment challenges when Biyani turned to Jeff Bezos-promoted Amazon, the latter was only too willing to oblige. However, in the process of investing Amazon extracted its pound of flesh. It mandated that Future Retail should not have any business dealings with any other firm except Amazon. Before Future Retail could fully recover from its debt crisis, the Covid-19 pandemic came as a blow. Biyani out of desperation approached Reliance Retail to bail it out of the crisis by acquiring Future Retail. Reliance Retail agreed to the offer. Amazon went to court stating that this was a breach of contract and thereafter all hell broke loose. The matter got involved in litigation in courts. Biyani suddenly found his dreams evaporating and was left wondering what he could do to rescue his retail empire.

Key Words

Business Disruption, Business Environment, Competition, Mergers & Acquisition, Retail Industry

Author Biography

V S Pai
Senior Professor of Strategic Management, Kirloskar Institute of Management, Yantrapur, Harihar 577601, Karnataka, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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