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Case
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Reference no. 9-519-P08
Portuguese language
Subject category: Marketing
Published by: Harvard Business Publishing
Originally published in: 2018
Version: 23 August 2018
Length: 21 pages
Data source: Published sources

Abstract

This is a Portuguese version. By late 2017, Brazilian retailer Magazine Luiza's CEO was convinced that the company could significantly grow sales and accomplish its aspirations of digital transformation. What was unclear in his mind was whether he should act as a tech company and grow as fast as possible (eg, high double digits) or be more conservative and grow sales at a financially healthy rate, like traditional retailers did (eg, single digits). The primary way e-Retailing companies achieved these abnormally high rates of growth was through lowering prices and foregoing profitability. Historically, mass retailing had razor-thin margins. It was thus unlikely that he could have it both ways: grow fast and be profitable. Should Trajano opt for more aggressive growth or proceed more conservatively?
Location:
Industries:
Size:
> 1 billion; Large
Other setting(s):
2015-2017

About

Abstract

This is a Portuguese version. By late 2017, Brazilian retailer Magazine Luiza's CEO was convinced that the company could significantly grow sales and accomplish its aspirations of digital transformation. What was unclear in his mind was whether he should act as a tech company and grow as fast as possible (eg, high double digits) or be more conservative and grow sales at a financially healthy rate, like traditional retailers did (eg, single digits). The primary way e-Retailing companies achieved these abnormally high rates of growth was through lowering prices and foregoing profitability. Historically, mass retailing had razor-thin margins. It was thus unlikely that he could have it both ways: grow fast and be profitable. Should Trajano opt for more aggressive growth or proceed more conservatively?

Settings

Location:
Industries:
Size:
> 1 billion; Large
Other setting(s):
2015-2017

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