Lillo Mall Case Study

Lilo Mall is bazaar type marketplace based in Tbilisi Georgia. It was founded in 1991 by four university professors. In early 90s Georgia gained independence and there was a civil war as well. The whole country was in huge trouble there was no electricity and gas, post-war environment and plus the terrible destructive influence of Soviet Union. The Georgian economy was demolished, people were scared of going outside for buying grocery products, there were lines for buying bread. None was thinking about earning money or building a commercial center, there were only spontaneous markets, merchants were gathering and were selling or trading with their products somewhere in the streets. At that time founders of Lilo Mall decided to open bazaar a little

There is very important fact in the bazaar, that there are employed not only Georgian or Christian merchants, but there are Jewish, Muslim and Hindi merchants as well. Such a kind of cultural mix makes company welcome for many ethnicities groups, from the Caucasus region. The competitive advantage of Lilo Mall is very unique, clear and understandable. Its market segment is quite broad, which automatically means a large crowd of customers. The reason why its market segment is broad is that their competitive strategy is cost-oriented, which means that prices are very low compared to other retail outlets. The customer can buy every single thing in that place, starting from household inventories ending with car parts. Huge variety of products at reasonable cost is one of the key competitive advantages of the firm. Lilo Mall is welcome for enormous consumer’s crowd, because as I mentioned they can serve customers with various needs. Center offers wholesale and retail services at the same time, which gives it an opportunity to offer a vast amount of inventory. There are more than 6000 trading units in Lilo Mall and the area is 35