Democrata: Exploring Opportunities for Local Growth
(6 pages of text)
On May 12, 2016, the founder and development manager of Democrata, was considering the future of his clothing store, in light of an increase in visitors to the area from different regions of Lebanon. Democrata was a clothing and apparel store founded in 1974, providing the latest fashion trends to both women and men. It offered major brands and basic casual and formal wear at competitive prices for customers in all income ranges. With success and affordable prices in northern Lebanon, Democrata grew to attract customers from all over the country. The idea of growth had always interested the development manager, who was seeking the best way to generate organic growth in the business. However, he had to consider the challenges facing the apparel industry. What were Democrata’s competitive advantages? How strong was its financial position? What growth strategy would be right for Democrata?
This case is suitable for an undergraduate management consulting or strategic management course. The primary use of the case is within the strategic management framework of undergraduate business courses. The case is suitable for courses that cover the three forms of business level strategies, financial analysis, and strategies for expansion and growth. Students discuss strategic decisions that might help a company maintain its business level strategies and overcome any possible weaknesses, thus allowing the company to grow. After completion working through the case and assignment questions, students will be able to
- understand the political, economic, and industry-related challenges of companies operating in the apparel industry;
- identify the competitive advantages of a business and determine possible weaknesses;
- evaluate the financial position of a business and suggest recommendations to improve the company’s performance; and
- perform an external environment assessment and identify the best growth strategy, using a systematic problem-solving approach.
Lebanon, Small, 2018
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