Red Star Macalline: Strategic Evolution
(8 pages of text)
In 2016, the founder and chief executive officer of Red Star Macalline, China’s largest furniture shopping mall operator, was finalizing the company’s new growth plan—the “1001 Strategy.” The plan was to be implemented in two phases: first, building 1,000 brick-and-mortar shopping malls, focused on home improvement products, and then integrating the malls into a seamless ecosystem through a single overarching Internet platform. The company faced challenges in being the first in the Chinese home improvement industry to forge such a path. Could the chief executive officer sustain the company’s first-mover advantage? Would his overall strategy work? Did he need a reality check for the execution plan?
This case is intended for undergraduate, MBA, and executive education strategy courses. After completion of the case, students will be able to:
- understand technological disruption and its impact on an industry leader;
- evaluate the strategic responses of an industry leader to a disruptive technology; and
- conduct a reality check of an implementation plan.
China, Large, 2016
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