Subject category:
Marketing
Published by:
Lagos Business School
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Abstract
Grocery Bazaar (GB), a limited assortment grocery retailer operating in locations underserved by modern retail outlets in Lagos, Nigeria; is considering how best to meet its growth objectives in the face of dwindling margins. Sam Ejeh, the founder of the company, has set a growth target of adding 28 more stores in Lagos with target revenue of NGN 30 billion over the next 5 years. To meet this target, Sam is considering different growth options such as growing organically by partnering with a local estate developer. He is also considering partnering with a South African wet grocery franchise. These different options have several implications on growth and ownership of the business which need to be balanced. At the same time Sam knows he has to resolve some manpower and supply chain issues that might also have profound impact on growth.
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Abstract
Grocery Bazaar (GB), a limited assortment grocery retailer operating in locations underserved by modern retail outlets in Lagos, Nigeria; is considering how best to meet its growth objectives in the face of dwindling margins. Sam Ejeh, the founder of the company, has set a growth target of adding 28 more stores in Lagos with target revenue of NGN 30 billion over the next 5 years. To meet this target, Sam is considering different growth options such as growing organically by partnering with a local estate developer. He is also considering partnering with a South African wet grocery franchise. These different options have several implications on growth and ownership of the business which need to be balanced. At the same time Sam knows he has to resolve some manpower and supply chain issues that might also have profound impact on growth.
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Size:
Over USD10 billion (contribution to national output as at 2013/14)