BIM: Finding New Ways to Grow

Case Solution

Michael Chu, Gamze Yucaoglu
Harvard Business School ()

BIM, the Turkish retail giant with a strict discount model for popular segments, has to decide whether to launch a new format that will challenge modern supermarkets. Since its inception in 1995, BIM has adhered to a business model that is based on a constant focus on cost and operational efficiency, based on private labels and a relentless SKU cap. The unprecedented success of this retail concept in Turkey has led BIM to an IPO on the Istanbul Stock Exchange and to become the largest retail company in the country by market capitalization. As the company saw the opportunity to do pioneering work internationally, the company was now also represented in Morocco and Egypt. While the hard discount format continued to grow, Haluk Dortluoglu, the company’s CFO, began developing an entirely new retail model for the Turkey FILE discount store in 2014. FILE would have many more SKUs in larger stores and would compete directly with national and local supermarkets. Throughout the year, the company’s top executives, in their various boardroom meetings, discussed the many questions posed by a completely different negotiation format and the usefulness of presenting it. Finally, the company’s board of directors will make a decision on FILE at its first meeting in 2015.

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