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SC STORAGE: BIG DATA BEHIND MINI-STORAGE

Reference No. 16/002C Publication Year 2016
Author(s) Amy Yip, Cinty Li
Company SC Storage
Industry Real Estate
Geographic setting Hong Kong; Singapore
Functional Area Marketing; Management of Information Systems; Finance and Investments

Synopsis

Have you ever imagined the digital footprints you left behind would come back to you? That every search you made on Google, every web page you browsed, every comment you wrote on Facebook had been monitored, and someone—in fact, a mini-storage company—was mining this data in bulk and repackaging it to tailor a product for you? 

SC Storage was the leading mini-storage operator in Hong Kong where property prices skyrocketed while apartment sizes shrank in the last decade. The company offered self-accessed storage spaces for both individual customers and corporate clients. Since the barriers to entry in the mini-storage industry were low, competition was fierce. In the company’s latest innovative move that rides on the information technology wave, CEO Mr. Kevin She adopted big data analytics to identify the top 5% of its most profitable clients, thus enabling the company to close deals faster and at higher rents. 

Learning Objective

This case describes the emergence and growth of SC Storage, a mini-storage company in Hong Kong that grew to be the industry leader because of its unique products, innovative marketing strategies and recent leveraging of big data. SC Storage revolutionized the warehouse industry and expanded by taking advantage of the shortage of storage space in crammed Hong Kong apartments and business units amid soaring property prices. Students will be briefed on SC Storage’s development and required to analyze its success factors and recommend future directions. 

 

Suggested Questions:

1. What distinguishes SC Storage from its competitors?

2. Assume the role of CEO Kevin She. How would you leverage big data to further expand your business?

3. Would you consider cooperative or/and consolidation marketing strategies for SC storage and other Hong Kong storage companies?

4. What challenges does SC Storage face when expanding overseas?

 

This case was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (UGC/IDS12/14).