Flying Tiger Copenhagen

FLYING TIGER COPENHAGEN
1. Is Tiger’s marketing mix consistent, with each element reinforcing the other? Does it
reflect its value proposition?
a) Marketing mix
a. Products: Ever-changing, novel, low-price, fun, quirky products (stationery,
toys, hobby & craft goods etc.)
b. Place: Bright, attractive, shops in high foot-tall locations
c. Promotion: Retail theatre - fun places with new products every visit pull-in
customer
d. Price: Low price/cost -points
b) Value proposition – Affordable price
2. Undertake a SWOT analysis. Are the threats & weaknesses covered by the nine main
risk areas?
a) Threats:
 Exchange & interest rates
 Cash flow (performance)
 Competition (imitation, product innovation etc.)
 Performance of local partners
 Performance of steering & supply chains
 Legal compliance etc. of products
 Partner collaboration & performance
 Control systems & IT infrastructure
 Attracting good staff
b) Weaknesses:
 No one has been a mediator before or been through any formal mediation training
programs.
 One staff member has been a part of mediations but not as a neutral party.
3. List Tiger’s critical success factors & the strategic options as it grows. Are these
covered by the nine main risk areas?
i. Critical success:
a) Overall cost control: buying, shipping, exchange rates etc.

- Business model means costs must be kept low
b) Control of partner performance: shops, suppliers, warehouses & logistics network
- Business model means sales volumes must be kept high in shops & costs low with other
partners
c) Product range innovation
- Business model means range must be unique & continually renewed
d) Market & competitor scanning for threats & new territory opportunities
ii. Strategic options:
a) Development of new branches

b) In-house design or buy-in of new products
c) Annual buy-out opportunity of under-performing partners
d) Online sale
4. Is the Tiger growth & expansion model consistent and coherent?

Growth model: Have an operating model with a governance structure anchored around their
management team. Management monitor and review the business units operational and financial
performance, aiming to proactively take advantage of opportunities as well as address potential
challenges in their markets.
One area of focus is to ensure efficient supply chain operation and processes with low working
capital requirements to service their stores effectively.
They look to free up capital for future country partner buy-outs and generally to support
continuous developments of their business. Their initiatives aim to improve inventory levels by
lowering lead time from purchase to sale, strengthening their forecasting process and improving
working capital as well as enhancing coordination across the organization.
Expansion model: Establishing stores in new markets has generally been achieved through
50/50 owned partnerships with a local partner, which ensures local entrepreneurship and
significantly increases their organizational capacity for international expansion while reducing
the risks when entering new markets.
A jointly owned local company is set up, and Zebra shares investments, costs, and profits with
the local partner. In other words, the cooperation is a business partnership. The partnership is
assigned a certain territory, with the size of the territories ranging from a region to an entire
country.
Zebra owns the concept and brand, supplies the products, store interior and marketing material,
while the local partner is responsible for store rollouts and day-to-day operations including staff,
training and local marketing under specific guidelines set out by Zebra.
5. Why is this partnership model attractive to Tiger? What are the advantages &
disadvantages of this model to partners?
It is part of Zebra’s strategy to take full ownership of the local operating companies when this is
assessed to be more beneficial than the partner model. Zebra operates companies in Denmark,
Sweden, Norway, Finland, Iceland, Southeast and Northern England, Scotland, Ireland and
Northern Ireland, the Netherlands, Poland, Northern Italy, parts of France, United States,
Germany as well as a large part of Spain including areas around Barcelona, Madrid, Mallorca,
and Valencia. The partnership model has a contractually defined exit mechanism.
Advantage: Partners are typically individuals or a small group of people with an entrepreneurial
mindset who are appointed after a thorough selection process based on their operational
capabilities to roll out the concept as well as their retail experience, local market knowledge,
managerial and financial capacity.
Disadvantage: Profit Sharing – Partners share the profits equally. This can lead to inconsistency
where one or more partners are not putting a fair share of effort into the running or management
of the business, but still reaping the rewards. The two main disadvantages are the levels of
taxation and the liability. The latter being negated by the ability to form a Limited Liability
Partnership.

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FLYING TIGER COPENHAGEN

a) Overall cost control: buying, shipping, exchange rates etc.

ii. Strategic options:

a) Development of new branches

4. Is the Tiger growth & expansion model consistent and coherent?

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