<p align="justify">Acen Haitao Jiang, founder and chief executive officer of Aomi, faced a dilemma. Founded in 2016, Aomi was an online food delivery platform in Macao with a local market share of over 90 per cent. Nevertheless, Macao was a small market with a population of about 680,000 and an area of 32.9 square kilometres, which was becoming a bottleneck for Aomi’s growth. Jiang was considering a Y-strategy, composed of three business development strands: food delivery (i.e., maintaining the core business); business diversification (e.g., livestream commerce and online supermarket services); and international expansion to new, larger markets (e.g., Hong Kong). With limited resources and potential risks, however, Jiang was struggling to choose between diversification and market expansion. June 1, 2022, would mark Aomi’s sixth anniversary and Jiang had to decide on a growth strategy before then.
Tianlala is a Chinese new-style tea drink brand that has been developing, producing, and selling fresh ice cream, tea, and coffee since 2015. By 2021, the brand covered twenty-eight provinces, 105 cities, and three municipalities across China. It had opened more than one hundred directly operated stores and more than six thousand franchised stores nationwide, served more than two hundred million customers, and sold an average of 1.5 million cups of milk tea every day.<br><br>It had taken only six years for Tianlala, a small, unknown milk-tea brand, to become one of the representative brands in the low-tier city market, going from being unknown to being accepted and appreciated by consumers, especially young ones. Despite this quick growth, the question for Wang Wei, the founder of Tianlala, was, How should the company reinforce its brand to grow further?