SCS – Mar 2024 – L3 – Expansion and Strategy of Prestige Designers Ltd

Prestige Designers Ltd, a leading company in Ghana’s real estate industry, operates multiple brands catering to various housing needs. The case explores its corporate strategy, emphasizing its reliance on traditional house-building techniques while lagging in modern methods of construction (MMC) and sustainability. As economic conditions tighten and competition increases, Prestige faces critical decisions regarding cost control, competitive differentiation, and strategic focus.

The case presents several challenges, including the need for strategic cost management and exploration of competitive strategies, such as cost leadership and differentiation, to retain market share. Prestige’s organizational structure, developed through a series of acquisitions, is complex and lacks integration, particularly in IT and operational systems. This decentralization creates inefficiencies, making the case for IT centralization to enhance data accuracy and resource sharing.

Prestige also considers expanding into neighboring West African markets, where it must weigh the risks of political instability and regulatory challenges against the potential for significant market growth. Additionally, Prestige must navigate the ethical and legal implications of potential joint ventures with partners involved in controversial practices.

Key areas of focus include corporate governance reforms, strategies for sustaining competitive advantage, resource sharing through IT integration, and harmonizing human resources. The company’s future may also hinge on its ability to embrace sustainable building methods, which are becoming increasingly important in the real estate sector.