The Decline of Al-Fatah: A Strategic Analysis

Abstract

This case discusses the emergence and downfall of Al-Fatah departmental store in Sargodha, a limited period of existence, but failed to maintain its position because of very critical strategic, operational and market misalignments. Despite the fact that Al-Fatah was a known retail brand, its location in an outskirt part of the city hindered accessibility to local consumers, whose travel behaviour is very different compared to bigger and metropolitan cities. A long-term flyover construction project also caused inconvenience to the flow of customers and the franchisee service model of the store led to managerial loopholes and poor strategic management. The entry of a cheaper competitor in a central location later on boosted the downfall of the store. The case presents the main learnings of retailers moving to the mid-sized cities of Pakistan, focusing on the significance of aligning with the market, accessing it, positioning competitively, and leading in terms of operations. 

 Keywords: Retail business, strategic misalignment, market accessibility, competition, consumer behaviour

 Subject: Strategic Management / Retail Marketing / Entrepreneurship

Difficulty Level: Medium/Undergraduate