Assaí’s exponential growth – from a business unit to spin-off
DOI:
https://doi.org/10.53946/rmr.v4i1.31Keywords:
Wholesale, Efficient execution, Cash-and-carryAbstract
Objective of the study: The case aims to propose a reflection to students about the importance of having a well-defined business strategy and putting it into practice in the day-to-day business. A current discussion of the direction of Assaí (one of the largest companies in the self-service wholesale segment) amid a global health crisis is presented. The case can be used in undergraduate or graduate courses, in the areas of business, retail, strategy and marketing.
Methodology/approach: This business case was built with secondary data, obtained from news, data from IBGE and IPEA, trade associations and publications from the retailers themselves. As the case deals with publicly traded companies, the volume of public information is quite extensive and up to date.
Main results: By the end of the case discussion, students should be able to understand: the relationship between the economic downturn and the cash-and-carry store format; the factors that contributed to the exponential growth of Assaí in the last decade; the reason why the company has not positioned itself on digital channels, even in the midst of the pandemic and the acceleration of delivery guided by the “lock-down” moment in the country; how Assaí can direct its strategies to stand out in the cash-and-carry market in Brazil.
Theoretical/methodological contributions: Any course or discipline that aims to present strategies based on the restructuring of key points to boost the company can use this case to bring relevant discussions during the class. Through the notes and suggestion of possible organization of the class for the use of the case, the teacher will be able to conduct the class considering the teaching approaches of the discipline, be it cash-and-carry retail, operational excellence in retail, digital acceleration, or competitive scenario of the food distribution market in Brazil.
Relevance/originality: The cash and carry segment, to continue growing and supplying both the final consumer and the small retailer, will need to keep cost management more and more accurate, as there is no way to have competitive prices with small margins if you do not have intelligent management of business costs. In this business case, discussions are held on the importance of having an efficient execution from a growth and expansion strategy in times of economic uncertainty in the Brazilian market.
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