When I was around seven or eight, there was a retailer who was in his early twenties and owned a electronic equipments store. Due due family disputes, he had just parted ways with his older brother who was in the same business for more than a decade . When he started his own store, he was young, had no idea of building a business and all he knew was, how the connections worked on a circuit board. Everyone in our neighbourhood thought he will not survive for more than a year or two without his older brother’s support and eventually he’ll go back to his brother.
However after a few months, his business started to grow. From just fixing things, he started to sell electronic products in his store and after few more months he became a major distributor of some of the products such as tubelights, bulbs, fans, geysers and many more and after a few years he started to take huge contracts from some of the real estate builders in an around our neighbourhood and fifteen years later, he became a major player in south Bangalore electronic equipments sales and had a annual revenue of more than sixty crore Rupees. Whereas his older brother, who had started around a decade earlier had wound up his shop and returned to his hometown.
The reason I remembered Ram Nivas (his real name) for this blog is because whenever I thought about him and his brother, I thought Ram was maybe more passionate, better with people, had better business acumen. But something I have realised after so many years that actually was the reason for this great trajectory is, Ram was better strategically. When he started his own business, he chose a neighbourhood which was growing and still developing. He chose the area where he saw a lot of vacant land and he knew there will be a lot of construction happening soon, which would mean that there will be a lot of demand for his services.
Richard Rumelt (considered as one of the best thinkers on the topic) in his book, Good Strategy/Bad Strategy writes, The first step of making strategy real is figuring out the big ‘aha’ to gain sustainable competitive advantage—in other words, a significant, meaningful insight about how to win.
And that “aha” moment for Ram was to rent a shop in the area where there was hardly anything at that moment but will soon start developing.
In today’s world, most of the organisations have made it a sort of mandate to have a vision and a mission for themselves which is important too, but the problem arises when the organisation and its managers confuse strategy to having a fancy vision and mission statements. A good strategy simply put is, Coherent set of actions designed to achieve a specific goal by leveraging strengths and tackling critical challenges. And a bad one is, Fluffy statements, wishful thinking, vague goals, or long lists of unconnected initiatives.
A good strategy has 3 components,
- Coherent Actions – A sequence of moves that align.
- Diagnosis – Identify the real challenge.
- Guiding Policy – A chosen approach to tackle it.
If organisation A’s mission is to become the market leader (based on customer count) at delivering personalised gifts,
Coherent Actions – Every action of every employee of that organisation should be focused towards accomplishing that task. It would mean every effort, every project, every KPI of that organisation and its employees should be aligned towards achieving that objective.
Diagnosis – Organisation A has to figure out where it is leaking money or loosing its prospects. Could it be, the cost of its products, the quality or maybe their marketing team is not able to market the products appropriately.
Guiding Policy – It has to know the market trends and what the market demands are. Could it be something that the prospects follow on social media, a viral TV series or a song. In simpler terms, constantly doing market research and being on top of any recent trends.
A case study that peaked my interest and inspired me to share the learnings with you all is from the book I mentioned earlier, Richard Rumelt’s “Good Strategy/Bad Strategy” where he breaks down and explains Sam Walton’s strategy with Walmart,

In the 1960s, most big retailers focused on cities and large suburbs, believing rural towns lacked the population to sustain profitable stores. Walton spotted a different truth: these communities were underserved yet had the same appetite for low prices and quality products as city shoppers. The real challenge wasn’t demand—it was figuring out how to serve these customers efficiently at scale.
Instead of chasing urban markets like its competitors Sears or Kmart, Walton committed to small-town dominance. His strategic mantra was Everyday Low Prices (EDLP), not periodic big sales. This single-minded focus meant every operational decision had to align with cost leadership and accessibility.
Walton’s success didn’t come from ambition alone; it came from coordinated, tangible steps that reinforced his guiding policy:
- Opened stores in clusters around distribution centres to minimise transport costs.
- Built a centralised logistics system rather than relying on wholesalers.
- Used computer inventory systems and satellite communications before competitors caught on.
- Fostered a “save money for the customer” mindset across all employees
Good strategy almost always looks this simple and obvious, discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with them. Walton didn’t just dream about being the biggest retailer, he designed a system to make it inevitable.
“A good strategy includes a set of coherent actions. It is about action, about doing something.”
From a single rural store, this clarity of purpose and alignment of execution propelled Walmart into a global retail leader it is today.
“At the core, strategy is about focus, and most complex organizations don’t focus their resources. Instead, they pursue multiple goals at once, not concentrating enough resources to achieve a breakthrough in any of them.” Richard P. Rumelt, Good Strategy Bad Strategy
Now the exact opposite case, a “bad strategy” is of Big Bazaar losing the plot in Indian retail

Once the crown jewel of Future Group, Big Bazaar was India’s answer to Walmart in the early 2000s. It blended the feel of an Indian marketplace with the scale of a supermarket, quickly becoming a household name. But by the late 2010s, cracks in its strategy became too deep to fix—culminating in a collapse accelerated by debt, competition, and the pandemic.
- E-commerce and organised competitors like Reliance Retail and DMart were building ultra-efficient, low-cost supply chains.
- Customers were moving towards either high-discount formats (DMart) or convenience-focused online shopping (Amazon, Flipkart, JioMart).
- Instead of recognizing operational inefficiency and pricing uncompetitiveness as the core problems, Big Bazaar doubled down on store expansion, assuming brand familiarity would keep footfall strong.
Big Bazaar tried to be all things to all customers – discount store, fashion destination, grocery bazaar, electronics seller – without achieving excellence in any one area.
As Rumelt warns:
“When you fail to choose, you try to accommodate conflicting demands and end up with a muddle.”
Big Bazaar’s actions often contradicted each other:
- Excessive Diversification – Launched sub-brands like FBB (fashion), Food Bazaar (grocery), and eZone (electronics) without building scale advantage in any category.
- Operational Inefficiencies – Complex supply chains, high rental costs, and poor inventory management meant they couldn’t compete on price with DMart.
- Delayed Digital Pivot – Launched online initiatives too late, and they lacked integration with store operations.
- Debt-Fueled Expansion – Opened large-format stores in expensive locations without ensuring profitability.
The Inevitable Downfall :
By the late 2010s:
- DMart offered lower prices.
- Amazon/Flipkart offered unmatched convenience.
- Reliance Retail aggressively captured urban and semi-urban markets.
Big Bazaar was stuck in the middle, with neither the cheapest prices nor the best experience. - The debt burden worsened, COVID-19 slashed footfalls, and in 2022, the brand’s assets were acquired by Reliance Industries.
Bad strategy is long on ambition and short on focus. Big Bazaar wanted to be everywhere for everyone, but ended up being nowhere for anyone.
To Summarise,
A good strategy is a clear, focused plan that identifies the real challenge, sets a guiding policy, and drives a set of coherent actions to overcome it. A bad strategy is vague, full of ambition without focus, ignores key problems, and scatters effort across unaligned initiatives.
In business, success comes from diagnosing the real issues, making deliberate choices, and aligning every action to reinforce those choices, turning intent into impactful results.
PS – If you are wondering what Ram Nivas is upto these days, he has moved on to become a major property builder, owns several rental properties and lives a content life with his wife and 2 daughters.
Be Great!
Praveen.












