Victory supermarkets expansion strategy harvard business case analysis, strategic, financial,...
-
Upload
sahlar-bayramov -
Category
Education
-
view
272 -
download
3
Transcript of Victory supermarkets expansion strategy harvard business case analysis, strategic, financial,...
![Page 1: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/1.jpg)
••••••••••••••••••••••••••••••••••Victory SupermarketExpansion Strategy
TEAM 33Aydan MasmalizadehAzad BagirovShahlar BayramovFarid Akberov
![Page 2: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/2.jpg)
Overview
Market Environment
Marketing Strategy
Financial Analysis
Risk and Mitigation
Conclusion
1
2
3
4
5
6
![Page 3: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/3.jpg)
OVERVIEW
Retail / Grocery
Competitive Market
Funding Requirement
Obj
ectiv
es
Focus on quality & service
Increase Market Share
Keep the Chain Viable
![Page 4: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/4.jpg)
Overview Environment Marketing Financial Risk Conclusion
Kingston
Twin city
Marlborough
Lancaster St
The OlderConventionalMarket Squares
![Page 5: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/5.jpg)
Expand Rapidly
Derry Hingham
Decision Tree
Expand Slowly
![Page 6: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/6.jpg)
DECISSION MATRIX
Key factors Expansion Rapidly New Market Square
Competition
Up-front cost
Differentiation
Size of market
Sustainability
Positioning
Total 1 7
![Page 7: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/7.jpg)
DERRY VS HINGHAM
![Page 8: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/8.jpg)
RECOMMENDATION
1998-1999 2000-2005 2006-2008
New geographies, developing profitability
Increase efficiency, develop performance
Grow faster, acquire business
Penetrate & Develop ExpandRestructure
![Page 9: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/9.jpg)
COMPETITORS
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.50
50
100
150
200
250
Size: 1991 Revenues in bill
# of
sto
res
![Page 10: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/10.jpg)
Demand
Market Strategy
Funding
Distribution
![Page 11: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/11.jpg)
Demand Market Strategy FundingDistribution
under 14 15-24 25-34 35-44 45-54 55-64 65+0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
![Page 12: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/12.jpg)
Demand Market Strategy FundingDistribution
under 14 15-24 25-34 35-44 45-54 55-64 65+0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
![Page 13: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/13.jpg)
Demand FundingDistributionMarket Strategy
3 WAVES
Strategy
• Specialize • Differentiate• Personalizes
Restructure
• Quality-driven• Go niche • Grow faster
Penetrate • Extend scope• Greenfield• Expand
synergies
Expand
1998
2001
2005
![Page 14: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/14.jpg)
Demand Market Strategy FundingDistribution
Depend on Supervalu
• Flexible• Meet our
needs• Greater
efficiency
After 5 years
• Increase sales volume
• Expand markets
Integrated firm
• Own wholesalers & retail
• Decrease cost
![Page 15: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/15.jpg)
Demand Market Strategy FundingDistribution
Wholesaler
Supplier
Supplier
Supplier Retail Store
Retail Store
Retail Store
![Page 16: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/16.jpg)
Demand Market Strategy Distribution Funding
Capital MarketPartnership
$ 39 M
$ 100 M+
$ 139 M
Victory
Supervalu
28%
72%
Total
Vote authority
Fleet financing
5 Years
Bank Loan
![Page 17: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/17.jpg)
FINANCIAL ANALYSIS
Derry Hingham Derry & Hingham$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,484,049
$49,484
$894,121
NPV
![Page 18: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/18.jpg)
Derry Hingham Derry & Hingham0%
5%
10%
15%
20%
25% 21.00%
3.3%
14.00%
IRR
FINANCIAL ANALYSIS
![Page 19: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/19.jpg)
Derry Hingham Derry & Hingham0
0.5
1
1.5
2
2.5
3
3.5
4
2.5
3.73.5
PPFINANCIAL ANALYSIS
![Page 20: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/20.jpg)
SENSITIVITY ANALYSIS
![Page 21: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/21.jpg)
SCENARIO ANALYSIS
optimistic base pessimistic
-5000000
-4000000
-3000000
-2000000
-1000000
0
1000000
2000000
3000000
by changing sales 10%
![Page 22: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/22.jpg)
Choosing Derry, reject Hingham
Increase sales volume
Cost Control, Consumer Loyalty
RISK PYRAMID
Economic downturn
Short-term Financing
Competition
![Page 23: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/23.jpg)
CONCLUSION
1998-1999
Set up just one store Derry
2000-2005
Increase market share
-variety of products and services-USP-POSITIONING
2006-2008
Continue to expand
![Page 24: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/24.jpg)
What if expansion fails?
![Page 25: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/25.jpg)
ALTERNATIVE PLAN
Continuous CustomersAlready Trained StaffLower Cost of Switching Higher
$117 <$177
$ 25 <
![Page 26: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/26.jpg)
Feed family real foodFrom our family to Yours
Most Cleanest
Friendly Personalized Service
Socially Responsible
Exciting Shopping
Strategic Points of Difference
![Page 27: Victory supermarkets expansion strategy harvard business case analysis, strategic, financial, marketing](https://reader036.fdocuments.in/reader036/viewer/2022062404/55491746b4c9055d458c3875/html5/thumbnails/27.jpg)
Thanks For Attention