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CitySuper’s Expansion Strategy

REF ID : UST080
Case Author : Prof Stephen NASON and Ashley MCDONOUGH
PublicAction Date : 14.04.2018

Abstract

Started in 1996 by Fenix Fashion Group, CitySuper became the first premium lifestyle grocery store in Hong Kong. CitySuper, the priority brand for the company, serviced customers with an appreciation for food, the affluent consumers who were also food lovers. Its President, Thomas Woo, and the Vice President of Corporate Services, Kim Tang, needed to propose a market entry strategy at the quarterly board meeting next month, and they were stumped. As a successful Hong Kong company made up predominantly of their high end super market chain, CitySuper, they were ready to consider adding additional locations within Asia to their portfolio. Having captured the high end, “foodie” market in Hong Kong, Taiwan, and Shanghai, they wondered how they should proceed. What other strategies could they consider for an effective entry strategy into new countries and cities? Should they double down on Hong Kong instead, to grow in the place they knew best?

Learning Objectives

Students are tasked to design the expansion strategy for the company and keep it in line of its priority brand. They are required to analyze the market entry fundamentals in  potential regions for the company, taken into factors like cultural context, business environments, competitions of the market and economic factors of the region, and finally to make decision on location selection of the store at a new market. 

Company/Organization CitySuper Group
Industry retail, lifestyle, grocery, Supermarket
Major Discipline Strategy
Subject(s) Business expansion, Market entry, strategy, customer behavior, food, lifestyle, store location
Geography Hong Kong
Case Nature Field
Page count of the Case 8
Publisher HKUST for GMC 2018
Last Revision Date 2018-03-28