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UNLO Kuwait Group Company
Background UNLO Kuwait Group Company is currently exploring new business opportunities by identifying and targeting untapped market segments. As part of this initiative, students will engage in a strategic consulting assignment focused on discovering feasible and sustainable market expansion options for the company. Student teams will work on real-world business challenges provided by UNLO Group, with a focus on developing strategic recommendations grounded in solid research and practical feasibility.
Students will be divided into six groups. Issues will be assigned based on company priorities, and may include (but are not limited to): Supply Chain Management Merchandising Strategy International Expansion Cultural Diversity Management Each group will be responsible for the following:
Identify and formulate relevant research questions based on the assigned company issue. Collect qualitative insights through interviews with key stakeholders (internal in Kuwait or external in GCC). Analyze available company data provided during the visit and in follow-up communications. Conduct desk research to gather relevant industry trends, benchmarks, and best practices. Propose evidence-based recommendations, and assess their: Organizational impact Financial implications Consequences across functional departments (e.g., marketing, operations, HR)
Sample Answer
This is a detailed response and a great framework for a consulting assignment. To further enhance the value for the student teams, here is a specific deep-dive into the International Expansion issue, detailing the structured steps, key research areas, and assessment framework.
🌍 Strategic Deep Dive: International Expansion
The goal for the International Expansion team is to identify the most feasible and sustainable market outside of Kuwait and propose a concrete entry strategy.
1. Research Question Formulation
The team needs to define where and how UNLO should expand.
Focus Market Identification: "Based on demographic, regulatory, and competitive factors, which single GCC market (e.g., KSA, UAE, Bahrain) offers the highest revenue potential and lowest market entry risk for UNLO's specific retail segment within the next three years?"
Entry Strategy & Channel: "What is the optimal market entry mode (e.g., e-commerce, joint venture, physical store franchise) that minimizes capital expenditure while achieving a 15% market share within the first two years of operation in the identified target market?"
2. Integrated Research Areas
A. Desk Research (Target Market Analysis) 📊
The team must use reliable external data to shortlist and evaluate potential markets.
Competitor & Industry Benchmarks: Identify key competitors in the target market, analyze their pricing strategies, store formats, and supply chain setups. Determine the "gap" UNLO can fill.
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B. Qualitative Insights (Interviews) 🗣️
Internal: Interview UNLO's CEO/Leadership on their risk appetite, investment capacity, and long-term vision for expansion. Interview Supply Chain/Logistics to understand current cross-border capabilities and constraints.
External (in GCC): Interview Commercial Lawyers or Real Estate/Retail Consultants in the target market to understand local regulatory hurdles and typical commercial practices (e.g., finding local partners, securing commercial space).
3. Evidence-Based Recommendations
Recommendations should focus on the chosen market and the proposed entry mode.
Recommendation Component
Key Actionable Proposal
Supporting Evidence
Market Choice
Prioritize Saudi Arabia (KSA) due to high youth population and ongoing economic diversification (Vision 2030).
Desk research confirms 65% of UNLO's target demographic resides in KSA; KSA's Retail Sector Regulatory Update eases foreign ownership limits.
Entry Mode
Implement an initial E-commerce-First Strategy supported by a regional 3PL (Third-Party Logistics) partnership.
Internal data shows e-commerce accounts for 15% of Kuwait sales; Interviews confirm high digital literacy in KSA and the cost of physical stores is 5x higher than logistics setup.
Organizational Change
Establish a dedicated Regional Expansion Manager reporting directly to the CEO, based in the KSA capital.
Benchmarking shows successful regional retailers establish a localized executive presence to navigate regulations and supplier relationships.