Case | HBS Case Collection | August 2007 (Revised February 2008)

Gome Electronics: Evolving the Business Model

by Regina M. Abrami, William C. Kirby, F. Warren McFarlan, Gao Wang, Fei Li, Tracy Manty and Waishun Lo

Abstract

After 20 years of expansion, Gome Electronics has become China's largest consumer electronics retailer. It has opened stores in almost every province in China, acquired some of its competitors, and went public in Hong Kong. However, it has begun to experience a slowdown in growth as sales per-square-meter have declined. The company is now being challenged to develop new ideas for growth, including experimenting with its product mix, renegotiating its relationships with suppliers, and developing new business models to maximize profitability.

Keywords: Business Model; Distribution Channels; Growth and Development Strategy; Technology; Industry Growth; Marketing Strategy; Business Growth and Maturation; Product; Electronics Industry; Retail Industry; China;

Citation:

Abrami, Regina M., William C. Kirby, F. Warren McFarlan, Gao Wang, Fei Li, Tracy Manty, and Waishun Lo. "Gome Electronics: Evolving the Business Model." Harvard Business School Case 308-026, August 2007. (Revised February 2008.)