Branded Lifestyle Holdings Limited: Strategic Transformation in China
(9 pages of text)
Branded Lifestyle Holdings Limited (Branded Lifestyle) was an Asian apparel retail company that emerged in 2011 after Fung Retailing Limited acquired Hang Ten Group Holdings Limited, a company listed on the Hong Kong Stock Exchange. With five apparel brands, Branded Lifestyle was profitable in most of its Asian markets. However, it was struggling in China and had reported annual loses until the acquisition. In 2014, a new managing director of global brands was appointed at Branded Lifestyle. Looking at the evolving apparel industry in China, and reviewing the company’s weak performance over the past years, the managing director knew he needed to develop a strategic plan to turn around the company’s operations. His aim was to build a strong and sustainable business in the Chinese market.
This case can be taught in strategic analysis and business-level strategy modules in a graduate-level course on strategic management. It is also suitable for elective courses on corporate turnaround or organizational design and change to illustrate a business’s strategic transformation. The case outlines the strategic planning process in order to enhance students’ abilities to develop appropriate business-level strategies. After working through the case and assignment question, students will be able to do the following:
- Discuss the major activities in the strategic management process.
- Conduct strategic analysis using various analytical frameworks for external analysis (political, economic, socio-cultural, and technological analysis and Porter’s Five Forces) and internal analysis (resource-based view analysis, firm value chain, and core competence analysis).
- Develop a comprehensive business-level strategy based on sound strategic analysis.
China, Large, 2014
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