Online retail strategy

CLIENT INDUSTRY: RETAIL
FUNCTIONAL TOPIC: STRATEGY

Challenge

Our client, a leading online retailer with over 40 million USD in revenue asked Strategy Labs to help develop a strategy for the next chapter of their growth, including a review of existing business as well as potential development of new e-commerce business models

What Strategy Labs did

Strategy Labs worked closely with the senior management team to identify pockets of future growth. We have defined 4 strategic opportunities for the business:

• Increasing customer penetration in the existing categories and markets through omnichannel strategy, data-driven cross-sell, and expansion of ancillary services
• Venturing into new attractive product categories with the largest ‘size of prize’
• Potential geographic expansion and business development in neighboring markets
• Development of new business models, including building a P2P e-commerce platform and spinning-off logistics operations
• We have also designed implementation charters for each of the agreed strategic initiatives and consolidated them into a broader timeline and financial plan.
   

Highlighted deliverables

• Data-driven cross-sell recommendations for key product categories
• Assessment of format options for offline stores
• Review of e-commerce category size and growth
• Profitability and multiple valuation comparison of key e-commerce business models
• Initiative charters for 8 core strategic initiatives and consolidated management financial plan