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    Gome Electronics: Evolving the Business Model

    McFarlan, F. Warren ; Kirby, William C. ; Abrami, Regina

    • Reference: HBS-308026-E

    • Year: 2007

    • Number of pages: 16

    • Geographic Setting: China

    • Publication Date: Aug 16, 2007

    • Fecha de edición: Feb 7, 2008

    • Source: HBSP (USA)

    • Type of Document: Case

    • Industry Setting: Computers & electronics

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    Description

    After 20 years of expansion, Gome Electronics has become China's largest consumer electronics retailer. It has opened stores in almost every province in China, acquired some of its competitors, and went public in Hong Kong. However, it has begun to experience a slowdown in growth as sales per-square-meter have declined. The company is now being challenged to develop new ideas for growth, including experimenting with its product mix, renegotiating its relationships with suppliers, and developing new business models to maximize profitability.

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    Keywords

    Business Models Execution Growth strategy Product lines Product management Suppliers