Matas (A): Will the Danish retailer’s transformation ignite growth?
This case details the struggles of a traditional retailer (Matas) wrestling with the changing retail landscape. The Matas management team recognizes that the company’s offline retail business is under serious pressure. Top-line growth has flattened, and bottom-line profitability has declined. The online market is expanding rapidly but is a tiny portion of the business. The team is aware that the company needs to grow the online business. However, this shift will be financially difficult because the margins for the online business are near zero and it represents less than 3% of total business. As the market leaders, whatever Matas management chooses to do will inevitably affect its core “in-store” business. The company needs the cashflow from the in-store business to pay dividends to investors. In this situation, the new CEO sets out three priorities (i) reignite store growth, (ii) build new growth paths, and (iii) grow online. Investors are unhappy with this direction and the stock has sunk to an all-time low. The question is whether this new strategy will enable Matas to survive or transform?
- Demonstrate the difficulties in changing a corporate strategy despite an observed need to do so
- Learn the difference between online and offline business models and the operations, skills, investment and metrics that lead to success.
Matas, Consumer Services, Retail
2014-2020
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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- Matas (A): Will the Danish retailer’s transformation ignite growth?
- Matas (B): Will its digital transformation strategy succeed?
- Matas (A): Will the Danish retailer’s transformation ignite growth?
- Matas (B): Will its digital transformation strategy succeed?
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
COVID-19 challenges the value systems of family firms and urges them to adapt their behaviors, affecting their identities. This study aims to explore how and why family businesses strategically respond to challenges to their identity during COVID-...
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in I by IMD
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