The learning outcomes are as follows: examining the attributes and characteristics of successful entrepreneurs, understanding the biggest challenges entrepreneurs are facing in the process of developing their own business, understanding how to lead change and create competitive advantage in an emerging economy, identifying the challenges and pressuring the business in facing the retail industry and discussing and debating the challenge of diversification strategy and the risks associated with it.
It was year 2009 when the largest hypermarket in Albania, “Do it Yourself”, opened its doors to the public by bringing in Albania an important investment. This investment was significant for the country because it materialized in the midst of the world economic crisis. The company hired 500 employees, a big number for the size of the country. The 160,000 m2 area facility is strategically located 6 km from Tirana International Airport and 8 km from the center of Tirana, the capital city. The interior of the Hypermarket Retail Store occupies 20,000 m2 retail, 12,000 m2 wholesale and 2,600 m2 office space. The rest is green space and parking. Megatek carries a range of 51,000 products in different categories as homemade decorations, lighting and electrical, building materials, tools, gardening, heating and cooling, painting, wood and flooring. The products are available at a brick and mortar store and also online; the products are also home delivered. The company has been devoted to contribute to consumer education, quality service delivery and quality products at competitive prices. Armed with eight years of continuing success, Dionis was facing a critical decision. Should he expand or stand pat? Should he diversify the activity or maintain focus? Meanwhile, Megatek’s challenges on growing its business remain vivid. A couple of changes in the external environment ask for smart responses in the internal environment.
Complexity academic level
BA and Master level students.
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CSS 11: Strategy
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
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