Magalu Has It: Social, Political, and Market Strategies during COVID-19

ABSTRACT

This teaching case presents the strategic positioning of the Magazine Luiza group (Magalu), represented by the director of institutional relations José Ribeiro and Luiza Helena Trajano, chairman of the Board of Directors, before and during COVID-19. The case’s objective is to promote a reflection on the business strategies adopted in times of crisis. Since the beginning of the COVID-19 pandemic in Brazil, Luiza and Magalu have engaged in discussions and practiced a series of strategic actions for the benefit of the group’s employees, small- and medium-sized companies, and those most affected by the pandemic. A few months after the first case, the instability was still perceived, it was still present, the number of infected and deaths rose and little was known about when the daily life would return to ‘normal.’ Many questions persisted about Magalu’s next steps. Thus, it was necessary to discuss how the group should position itself to ensure performance and reputation. The proposal is to make students put themselves in the place of José Ribeiro, director of institutional relations and the urgent affairs commission of Magalu, in order to encourage a debate about the market and non-market strategies that could be implemented.

Keywords:
times of crisis; nonmarket strategies; market strategies; Luiza Helena Trajano; Magalu Group