In 2016, the founder and chief executive officer of Red Star Macalline, China’s largest furniture shopping mall operator, was finalizing the company’s new growth plan—the “1001 Strategy.” The plan was to be implemented in two phases: first, building 1,000 brick-and-mortar shopping malls, focused on home improvement products, and then integrating the malls into a seamless ecosystem through a single overarching Internet platform. The company faced challenges in being the first in the Chinese home improvement industry to forge such a path. Could the chief executive officer sustain the company’s first-mover advantage? Would his overall strategy work? Did he need a reality check for the execution plan?
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