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  • August 2018
  • Case
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Digital Transformation at Brazilian Retailer Magazine Luiza

By: Thales S. Teixeira, Leandro A. Guissoni and Tania Modesto Veludo-de-Oliveira
  • Format:Print
  • | Language:English
  • | Pages:19
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Abstract

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 (e.g., high double digits) or be more conservative and grow sales at a financially healthy rate, like traditional retailers did (e.g., 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?

Keywords

Digital; Ecommerce; Retailing; Brazil; Bricks And Mortar; Pricing; Customer Lifetime Value; Growth and Development Strategy; Internet and the Web; Transformation; Decision Choices and Conditions; Retail Industry; Brazil

Citation

Teixeira, Thales S., Leandro A. Guissoni, and Tania Modesto Veludo-de-Oliveira. "Digital Transformation at Brazilian Retailer Magazine Luiza." Harvard Business School Case 519-009, August 2018.
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More from the Authors

    • December 2019
    • Journal of Marketing Research (JMR)

    The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment

    By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira
    • June 2019
    • Faculty Research

    Airbnb, Etsy, Uber: Expanding from One to Many Millions of Customers

    By: Thales S. Teixeira
    • February 2019 (Revised June 2019)
    • Faculty Research

    Where to Grow Next at Online Marketplace OLX

    By: Thales Teixeira, Leandro A. Guissoni and Samy Dana
More from the Authors
  • The Impact of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment By: Donald Ngwe, Kris J. Ferreira and Thales Teixeira
  • Airbnb, Etsy, Uber: Expanding from One to Many Millions of Customers By: Thales S. Teixeira
  • Where to Grow Next at Online Marketplace OLX By: Thales Teixeira, Leandro A. Guissoni and Samy Dana
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