Post on 02-May-2018
Sonae SR international expansion
Presenting to the board of directors:
Jaqueline Ledezma
Mario Martinez
Daniel Felix
Mauricio Martinez
EGADE BCG 1
Mandate
Find the best expansion strategy for Sonae SR.
Challenge: Profitability in International markets by 2017 and breakeven in Spain
EGADE BCG 2 EBCG To keep Sonae growing for the next 100 years
Agenda
•Recommendation
•Analysis
•Key Issues
•Strategy
•Implementation
•Wrap up
EGADE BCG 3 EBCG
Recommendation
EGADE BCG 4 EBCG
Expand Sonae SR into South Central
Asia and turn around stagnation in
Spain to improve profitability
through capital light
Sonae SR Stores by LOB
EGADE BCG 5 EBCG
39%
20%
21%
20%
Global Stores by Business
Worten Sport Zone MO Zippy
# of
Stores
Worten 229
Sport Zone 117
MO 124
Zippy 120
Sonae SR Global Presence
EGADE BCG 6 EBCG
71%
20%
0% 3% 6% Sonae SR Presence
Portugal Spain
India Saudi Arabia
Other countries
Sonae SR
Presence #
Stores
Portugal 417
Spain 120
India 1
Saudi Arabia 18
Other countries 34
• Sonae SR with 71% of stores
in Portugal
• Worten accounts for 39% of
stores 68% of revenue
• Sport Zone has 20% of stores
and 18% of revenue
• Fashion
• Zippy and MO 20% of
stores &
• 14% of Revenue
Key issues
EGADE BCG 7 EBCG We should base our strategy accounting these objectives
Achieve profitability
Assure company
sustainability
Create local partnerships
Sonae Core Competencies
EGADE BCG 8 EBCG
Ops management
Streamlined Logistics & Purchasing
Knowledge of Portugal
market
Experienced workers
Sonae SR Competitive advantage
EGADE BCG 9 EBCG
•Experienced, competent, dedicated workers
•Ability to develop new, capital light business models for stores
•Strong ability to adapt new business models
•Ability to accommodate new business partners through franchising
•Ability to turn weaknesses into strengths
Organic Expansion vs Capital light
EGADE BCG 10 EBCG
• Expensive
• High Risk
• Long term returns
(no Short term)
Organic
• Lower costs
• Higher
profitability
• Sonae has ability
to adapt business
models
Capital Light
Improve profitability in Spain
EGADE BCG 11 EBCG
•Create partnership with Zara Brand for clothing lines Zippy and MO to expand these product lines and increase profits
Geographical
cultural proximity
Large populati
on
Success in Spain indicative of
success
Market recovering from financial
crisis
Alternatives analysis
EGADE BCG 12 EBCG
Drivers /
Alternatives Spain
South Central
Asia Latin America Middle East
Price index
Brand control
Internationaliza
tion
Sustainability
Risk
management
Expansion time
Alternatives analysis
EGADE BCG 13 EBCG Enter the new Asian market and expand in Spain
Drivers /
Alternatives Spain
South Central
Asia Latin America Middle East
Price index
Brand control
Internationaliza
tion
Sustainability
Risk
management
Expansion time
The new retail business
EGADE BCG 14 EBCG Achieving brand sustainability and Sonae
Key elements
Predictive analytics
Prescriptive analytics
Fast fashion Optimization models
Solution for demand forecast & management
EGADE BCG 15 EBCG Apply a counter disruptive implementation
Create strong partnership with MIT
IT Business analytics
Developing a successful platform
EGADE BCG 16 EBCG Hire IT personal for this objective
MIT Logistics
IT platform in Zaragoza, Spain.
IT
Business analytics of human capital
EGADE BCG 17 EBCG
MIT partnership with the Master in
Business Analytics program for project
internships and personnel feeding farm.
HR
Competency to develop brands
EGADE BCG 18 EBCG
Hire marketing personnel from Inditex
(Zara)
Brand
Marketing Savvy Local market
knowledge
Jobs to do in India and South Central Asia
Develop local supplies
Lower costs
Faster deliveries
Create brand awareness
EGADE BCG 19 EBCG
Wrap up
EGADE BCG 20 EBCG Recommendation aligned with objectives.
Achieve profitability
Assure company
sustainability
Create local partnerships