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China's RSM: Turning Strategy into Results

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Using the case study: "Red Star Macalline: Strategic Evolution", please help with these questions:
Why is Red Star Macalline developing a new strategy?
What are the key success factors for the execution of RSM's strategy?
Identify and justify your choice of three specific initiatives that RSM could pursue to execute their new strategy?

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Solution Summary

The solution provides guidance on Strategic Direction for Red Star Macalline, a Chinese home furnishings and home improvements company in its Offline and Online Strategy.

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Guidance on Turning Strategy into Results
1) Why is Red Star Macalline developing a new strategy?
Red Star Macalline is a home furnishings company and is a large retailer of home furnishing and home improvement products in China. The company developed this on a concept that rather than owning and developing products that entail huge costs, the company will connect the consumer with product manufacturers at a lower cost and ensure that they receive quality products through the mall of RSM (Li & Schan, 2017). The company already has more than 200 retail stores in China which they built very quickly. As against a target of developing 200 stores by 2020, the company was able to launch 200th store by the end of the year 2016 (Li & Schan, 2017). As of Dec. 2017, the company had grown its footprints with the existence of 256 retail stores in China (Red Star Macalline Annual Report, 2017). The strategic gap exists here as there is a large market for home furnishings and home improvements and a little portion of the market was only tapped by the company. The company has developed the new strategy of 1001 which means that Red Star Macalline, referred to as RSM planned to develop 1000 malls and 1 online store and will integrate the online retailing and offline retailing (Li & Schan, 2017). The development of online business in addition to offline business is due to the fact that a research revealed that the consumers sometime gain experience by visiting the physical retail stores of RSM but they actually buy the products online (Li & Schan, 2017). This was a gap which existed and which was leveraged upon by the company's competitors. The company emphasized on Omni Channel presence (Li & Schan, 2017). This means that the company shall try to reach as many consumers as possible providing them a variety of experience and confirming to their expectations. Any strategic planning gap that exists within the company can be filled through ...

Solution provided by:
Himanshu Mahobia, MBA
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  • BCom, M.D.S University, Ajmer
  • MBA, M.D.S University, Ajmer
  • PhD, Suresh Gyan Vihar University, Jaipur
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