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Main case LBS Middle East Case Collection
Facing the Retail Apocalypse: Majid Al Futtaim’s Digital Transformation (A)
By Michael Jacobides, Dalbert Ma, Aryan Mittal, Konstantinos Trantopoulos
In just a few decades Majid Al Futtaim (“the Group”) had established an empire boasting major shopping malls, successful retail chains and popular entertainment centres across the Middle East, Asia, and North Africa (MENA) region. By 2020, however, its competitive landscape was changing fast, with diverse players striving to define the future of retail. Traditional powerhouses such as Walmart, with their extensive physical presences, and tech titans such as Amazon, rich with consumer data and technological prowess, were changing the way consumers shopped and interacted with brands. Whose business model would triumph in the dynamic environment of the Middle East? And how should traditional companies such as Majid Al Futtaim respond to the new landscape?
Learning objectives
- Understand how digitization affects industry complementarities and analyze how traditional industry boundaries evolve when ecosystem-based competition emerges in digitizing sectors
- Evaluate how incumbent organizations can simultaneously leverage their "outside-in" competitive positioning and "inside-out" capabilities to develop ecosystem strategies during digital transformation
- Examine the strategic challenges of balancing organizational ambidexterity - managing existing core operations while developing new digital capabilities
- Analyze how firms can design and orchestrate multi-sided ecosystem architectures that create value through both physical and digital touchpoints while maintaining strategic control
- Understand the role of data flows and customer touchpoints in ecosystem development, and evaluate the governance mechanisms needed to align diverse ecosystem participants
Details
| Publication Date: | December 2024 |
| LBS Case Code: | CS-24-025 |
| Topic: | Strategy |
| Subjects: | Business model innovation, Change management, Competitive Strategy, Customer Experience, Data Strategy, Digital transformation, Ecosystem strategy, Organizational Transformation, Retail Innovation, Strategic Asset Management |
| Industry: | Retail |
| Geography: | Middle East, North Africa |
| Pages: | 27 |
| Format: |
