Dia Dia Practimercados: Meeting the Daily Needs at the Base of the Pyramid (B) Harvard Case Solution & Analysis

According to this case scenario one Monday morning in August 2011, as José Vicente Aguerrevere (JVA) (HBS MBA 2002) prematurely linger for his group to get there for their weekly administration conference, he replicated on the combination of Día Día (DD) and La Diadema (LD). When they were determined in July 2009 to coalesce DD, their five-year old rapidly-enlarging FMCG: 1- retail chain emphasized on Venezuela’s base of the pyramid, with LD, a familiar personal care and household cleaning supplies retailer, they were certain it would be a real game-changer.2 ―What an underestimation,‖ thought JVA.

In the subsequent 18 months, DD had continued to plunge from entrepreneurial accomplishment to liquidation. While there were valid marketing deliberation behind the combination, what had ended the transaction hard to decline was the occasion to attain 29 additional stores in a non-cash switch for a 20% stake in DD. An engaging retail format like DD must have, in JVA’s opinion, ― 800 to 1,000 stores crossways Venezuella. Though, with no wealth to finance store extension other than operating cash flow, the Company was on the rise at a charge of 1 to 1½ stores a month. Therefore, the LD merger was correspondent to roughly 2 years of expansion.

PUBLICATION DATE: January 10, 2014 PRODUCT #: 314085-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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