Despite being among the top 50 global retailers in 2024, by early 2025, Falabella —a multi-business, multi-channel, and multi-national retailer headquartered in Santiago, Chile—was facing critical decisions regarding its growth strategy and organizational design. The rapid expansion of another online marketplace and the entry of global e-commerce giants into Latin America had dampened the firm’s growth, triggering a decline in its market capitalization from approximately US$25 billion in the 2010s to around $5 billion by the end of 2022.Falabella's new CEO faced the urgent task of setting strategic priorities to meet investors’ growth expectations. A related challenge for him was to redefine the company’s organizational design—whether by function, geography, or a hybrid of the two—to better support Falabella’s growth ambitions.
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