Magazine Luiza: Expanding Horizons: The role of ecommerce in the post-IPO growth strategy

  • Reference: M-1275-E

  • Year: 2011

  • Number of pages: 24

  • Geographic Setting: Brasil

  • Publication Date: Dec 21, 2011

  • Source: IESE (España)

  • Type of Document: Case

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In May 2011, Brazilian retailer Magazine Luiza successfully raised R$926 million (¿400 million) from its initial public offering (IPO) on the São Paulo stock exchange. The firm was immediately confronted with the challenge of accelerating growth beyond its already remarkable growth rate. The case is centered on the role e-commerce should play in the company's future. On the one hand, the market potential seems to be very interesting and the company's past online experience is mostly positive. On the other hand, there are concerns that pushing an e-commerce initiative could have negative effects on the company's well-established and successful internal and external positioning.


Consumer goods corporate culture Distribution channels Electronic Commerce Growth strategy Marketing strategy Sales strategy