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In 2014, as large investments poured into the e-commerce space in India, there was a general expectation that the online retail (e-tail) industry was heading toward a consolidation that would squeeze out smaller players. While e-tailers in India focused on following a marketplace model and developing a brand for their online market platforms, fashion2go created a product brand that targeted a very specific segment of young customers. Fashion2go was therefore faced with the challenge of demonstrating to its investors that its strategy was capable of ensuring long-term business viability and sustainability. Without further investments, fashion2go could not expect to continue building its brand and its operations, both of which were critical for the company’s planned aggressive growth.
This case is ideally suited for a master’s-level business management or executive education program for use in a module covering business strategy or focused differentiation. After completion of the case, students should be able to: ·Explore the development of a focused differentiation strategy using market segmentation, unique segment needs identification, and value propositions to satisfy these needs. ·Discuss how an effectively designed and implemented differentiation strategy can protect a company from direct competition and imitations, and therefore help to create sustainability. ·Understand how business strategy and operational areas (especially marketing strategy) are linked.