Lauded as “the Amazon of Brazil,” retailer Magazine Luiza, or Magalu, has cemented itself as one of the most spectacular digital transformation success stories in any industry.
From launching an online marketplace to speeding up deliveries with an Uber-like service, the company has aggressively harnessed technology to better serve its customers—and customers have responded, helping the company’s fortunes to skyrocket.
• Between January 2015 and summer 2019, Magalu’s stock price increased more than 18,000% in value—eye-popping in any context and truly remarkable given that Brazil was suffering its worst recession in history when Magalu’s rally started.
• Less than a decade ago, few would have predicted this meteoric rise. Then known as Magazine Luiza, the company was a primarily a brick-and-mortar retailer beset by unstable economic conditions and increased pressure from digitally-native competitors.
5 observations from Magalu’s success to accelerate their own businesses:
• Change comes from the top
• Innovators need room to innovate
• IT agility is a precondition to business agility
• Digital platforms unlock new business strategies
• DX transforms how an enterprise operates, not just its customer-facing experiences
• Technology is a road to change, not change in and of itself
Comments