Lifely Wellness Ltd: Micro Business Operations Strategy and Supplier Management

This case is suitable for undergraduate and graduate-level courses on operations management and strategic supply chain management. The case is also useful for entrepreneurship courses at the undergraduate level. At its core, this case is about how a micro business with little power in the market makes a strategic supplier switching decision that is consistent with its strategic priorities. The case asks students to use theories and concepts—such as the five dimensions of competitive priorities and the sand cone model of cumulative capabilities—to identify the operation’s strategic priorities. Students are encouraged to select one or more strategic suppliers that would facilitate the achievement of strategic objectives. Students must participate in a strategic choice with three options: continue working with the incumbent supplier and negotiate different terms, switch to one or more new suppliers and adopt a multi-sourcing strategy, or work with both new and incumbent suppliers. After working through the case and assignment questions, students will be able to

• become familiar with the challenges of operating a micro business in an unregulated market;
• think proactively about the operations strategy of a micro business and identify its strategic priorities; and
• evaluate the supply base available to a micro business and identify the trade-offs in selecting one supplier over another.