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LOST IN THE LABYRINTH :A CASE ANALYSIS

Parmita kalitaTikendrajit Gogoi

Rupam DasBitopan nath

Arnab Pran BordoloiReetesh agarwal

Subhankar sen

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The BackgroundTikendrajit Gogoi

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The Labyrinth- A Bangalore based pioneering bookstore-cum-library, started operations in 2002

Started by Jassi Shah as proprietor and Akaksh Rao as the General motors

Applied the Brick-and-Click method

to provide the readers an Unique experience of reading and buy the necessary book whenever required

IN 2003,Akash Rao started the DTH service feeling the hectic schedule of the Bangalorians to read a book whenever feasible.

Accessablity of the Internet was a growing factor the Labyrnith .

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The Bookstore

A Two story building located in the centre of the city,with a saeting capacityu of 100 people.

Saperate stories for both reading and buying books.Books categorized aseducational,engeneering,fiction,self help, bestsellers, science,classics.

keep the pace going,labyrinth organised regular

reading sessions for children once in a month and promotional events with

famous literary personalities.

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Issues in the case

Arnab Pran Bordoloi

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Continuously lowering members in one year.

Tough competition from other bookstores and libraries.

Huge costs in library maintenance and free book shipment

Delay in book delivery due to high orders and incompatibility

Jassi’s dream to make “Labyrnith” a national chain was at a fix.

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Name of the card

Base Card

Add-On Card

Borrowing limit at any time Books worth rs 600

Books worth rs 300

No . Of books issuable No limit No limit

Frequency of borrowing No limit No limit

Semi annual subscription Rs 1095 Rs 545

Annual subscription Rs 1995 Rs 995

Subscription charges for membership

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Early Days

Rupam Das

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Initial promotional campaign in local newspapers, radio, billboards, flyers, bus stops, grocery stores.

Prime focus in the youth segment, and created the tagline- “at home with books”

An integrated website for customer ease and well furnished library with wide array of categories to choose from.Infrastructure and IT expenses were spiraling,

outsourcing expenses Approaching at unsustainable levels, impacting on the

promotional Expenditures and Labyrinth’s customer growth was tapering

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The CompetitionBitopan Nath

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Established national bookstores e.g. Crosswords and Landmark and popular stores like Gngaram’s Higginbotham with high distribution network and customer loyality.

Labyrinth to face the faculties like CROSSWORD- In house cafe and study comfortably in the beanbags, Gangaram’s provided a well established British libraries and Eloor attracting a majority of bookworms.

Location advantage and client patronage was one of the major features of the competitors. The only competency of “Labyrinth” was the DTH

service and online Bookstore-&-library and the innovation was constantly under pressure.

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The Real Problem

Reetesh Agarwal

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5-year contract with the courier company “Transit Courier” was in trouble as they were unable to deliver the volume growth of Labyrinth.

Doubtful revenue model of worry to deliver the DTH books fore free.

Growing expenses and lowering volume growth was a matter.

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Question 1.

Does the Labyrinth have a sustainable revenue model? should they continue to offer free DTH service?

is further promotional spending necessary? and if so, how and where will the firm

find the funds for the promotional campaign?

Parmita Kalita

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Question2.

Is the Library-cum-bookstore idea a good business plan? Would it be in Jassi’s

interests to focus on either the library or the bookstore.

Arnab bordoloi

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Question3.

Can the Labyrinth expand to new localitiesAnd markets? if so, what mode should this

expansionTake? are there any firms that could be

strategic partners in the expansion process?

what can the firm do about Transit couriers?

Subhankar sen

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