BigBasket.com had emerged as one of the major players in highly competitive Indian online grocery retailing market by employing inventory based model. On March 22, 2016, Big Basket had secured Series D funding worth USD 150 million from the United Arab Emirates-based Abraaj group for driving its future growth. A few days later, the Government of India came out with guidelines on March 29, 2016, through its Press Note No. 3 (2016 Series) which stated that Foreign Direct Investment (FDI) in the inventory based model of e-commerce would not be permitted. As BigBasket grappled with the challenges of a growing and expanding business, BigBasket team had to evaluate the existing business model. This case traces the predicament of BigBasket in formulating a business strategy for taking the online grocery retailing business further.

Parsana Health Centre Private Limited, one of the pioneers of the organized fitness industry in the city, of Ahmedabad, had been actively engaged in inculcating, nurturing and promoting a healthy lifestyle to the general public through fitness regimes over the last two decades. The thirteen Parsana centres in the different parts of the city were reduced to eight centres facing stiff competition from the local players and the Parsana brothers had to set their priorities right, in order to discover the best strategy for growth. They thereby had to put together an appropriate promotional and positioning strategy in view of the long term objectives.