Harvard Case Solution & Analysis

Introduction:

One of the diversified conglomerate–LuLu Group International was founded in the year 2000 by M. A. Yusuff Ali. Lulu Group has a significant presence in retail, manufacturing, import, export and wholesale services. The company operates and offers its services in about 22 countries in Europe, the US, Asia, and the Middle East. Lulu Group is primarily the key player in the economic environment of the Middle East with an annual turnover of about US $7.4 billion in comparison to the US $5.8 billion in the year 2014.(Report, 2016) It represents a workforce comprising more than 50,000 employees. Being a renowned purveyor of the business portfolio at the international level, the operational services of LuLu Group ranges from hypermarket services to the development of shopping malls, real estate, hospitality assets, and food processing plants, wholesale distribution, and manufacturing and trading of goods.

The company deals in the production and processing of meat products, manufacturing, and export of products such as garments and silk, sources and exports agro-products such as electronics, luggage, textiles, footwear, vegetables, fish, meat, fruits, pulses, rice, coffee, nuts, cashews, and household articles. (Officials, Lulu Group International, 2020)LuLu Group has 188 retail stores with the vision to be the global retail brand in the organized sector of the retail industry where it operates and strives to be the most preferred employer. (Officials, About LuLu Group International, 2020)Lulu Group International includes three companies in the corporate family i.e. a parent company, a subsidiary, and a branch. The LuLu hypermarket chain is owned by the EMEK group. (Officials, 2020)The hypermarkets by LuLu represented the extensive layout of counters, sprawling spaces for parking, play area, food court, bank counters, and money exchange facility.(Begum, 2016)

Analysis:

SWOT Analysis:

Strength:

• One of the leading retail conglomeratesis known to offer its customers with the ultra-modern ambiance through the integration of all consumer needs under one roof.
• The LuLu hypermarket chain is considered to be the leader in the retail market of UAE supported by the 90 percent satisfaction of the customers.
• The Lulu hypermarket is preferred by the customers in comparison to the other hypermarkets in their respective states in Asia. (Begum, 2016)
• The conglomerate has strong CSR policies to bring a reduction in the increased environmental concerns.
• Within a short period, the conglomerate demonstrated good-quality products with increased brand loyalty serving as a key factor in organizational success.

Weakness:

• The legal disputes faced by the organization in India was primarily due to the implementation of the ineffective process.
• The organization lacks astrategic approach to invest inproduct differentiation.
• The rapid expansion of the business in a large number of countries tends to influence the financial stability of the organization at the international level.

Opportunities:

• The conglomerate can significantly expand its business operation internationally through the entrance in regions such as East Asia, China, Canada, Malaysia, Indonesia, etc.
• The company can own more label products to provide customers with organic food substances regarding their concerns about health.
• Further improvement in the loyalty programs offered to the customers would lead to increase consumer loyalty and collaborative relations with the customers.
• The promotion regarding improved brand awareness and reputation can be significantly done through social media marketing platforms which require less investment in comparison to other advertising strategies.
• Expansion in the production in the manufacturing of product varieties would increase the sales of the customers leading to increased revenue generation.

Threats:

• The presence of international competitors in the food retail industry tends to influence the brand position in the international market.
• The low-priced product offerings by the competitors through online portals might greatly impact the sales of the Lulu group – hypermarkets.

Inefficient management of the customer relationship might result in decreased customer retention due to the decline in customer satisfaction.

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