Escobar: struggle for surviving and sustaining business in emerging markets

Learning outcomes The learning outcomes are as follows: to analyze how external environmental factors and internal business challenges influence the sustainability and growth of a small business; evaluate strategic decision-making approaches that entrepreneurs can adopt to sustain and grow a business in the face of financial and operational difficulties; understand the significance of partnerships, leadership roles and team dynamics in ensuring long-term business success and stability; and explore innovative business diversification strategies and alternative revenue streams that can enhance financial stability and long-term sustainability. Case overview/synopsis Amir, the owner of Escobar, sat in his office, contemplating the growing challenges his fast-food venture faced in Pakistan’s dynamic food industry. Despite its initial success and strong brand appeal among young customers, Escobar was struggling due to rising operational costs, increasing competition and shifting consumer preferences. Financial strains and internal conflicts among partners further complicated the business’s sustainability. Once a thriving hot spot, Escobar’s sales had declined, and retaining its unique market position was becoming difficult. To make matters worse, a key partner had exited the business, leaving Amir to manage operations single-handedly. Questions arose: Could he stabilize Escobar amidst these pressures? Were there strategic changes he could implement to ensure long-term success? Should he seek new partnerships, reposition the brand or explore alternative revenue streams? This case prompts students to analyze strategic decision-making in challenging business environments using Porter’s Five Forces and the Business Model Canvas. It encourages discussions on competition, financial sustainability, partnership dynamics and innovation in the fast-food industry. Would Amir find a way to sustain and grow Escobar, or was it time to pivot or exit the business? Complexity academic level MBA/EMBA graduate level and BBA undergrad level in Major Specialization Courses Supplementary Material Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.