JSW Shoppe in Harvard case study
JSW Steel, is India’s largest integrated private sector steel maker. The Company manufactures a wide range of grades of steel. The Company’s gamut of products has garnered the trust and stolid support of a large network of buyers. Initially, JSW Steel sold its products through a large network of dealers.
However, the managerial think-tank refused to rest on its laurels and began to build a brand image for its products, increasing its market penetration beyond builders and fabricators to attracting the attention of end users who, in turn, would drive up the sales
The Company felt that the present distribution model did not serve the purpose, and designed the unique concept of JSW Shoppe - a franchising model wherein the company would partner with the existing, as well as, new dealers to achieve their objectives.
Harvard’s Richard Ivey School of Business Foundation, took up this model of retailing steel in a 2010 case study. The study deals with the issues and challenges of transforming from a transactional distribution model to a relationship-based distribution model for franchising.
Through the analysis of the case study, students can find the best way to address issues related to this transformation. The case demonstrates the importance and role of a sales person and the problems and issues that arise when the distribution model is changed - both from the dealers' and the company's perspectives. The study, inspired by JSW Steel’s path-breaking initiative, is going to serve students across the globe as a model of sales academia.