Bed Bath Case Summary
Let’s take this private: linens ‘n things versus bed bath & beyond
Problem: In March 2006, Robert (Bob) DiNicola, chief executive officer (CEO) of Linens ‘n Things (LNT), needed a turnaround plan for LNT. The task of restoring the housewares retail chain to a leading position within the industry was a daunting one. The impact of comp etitors such as Bed Bath & Beyond (BBBY) coupled with encroachment from discount retailers like Target and Walmart had eroded LNT’s stature as a housewares retailer.
Alternatives: 1. Improve supply chain, lower their cost. 2. Improve online store, online shopping. 3. Differentiation strategy. 4. Globalization. They can seek international partner to expand their business.
5. Learning the successful experiences from Bed Bath & Beyond.
1. PROS: Cost reduction can better promote consumption. Increase sales.
CONS: Product quality will decline. Reducing the high consumption people.
2. PROS: Online shopping can be better to increase consumption. The Internet provided customers with easy access to pricing information.
CONS: Creating online shopping need a lot of money. And may affect the sales of the store.
3. PROS: Differentiation strategy can open up a new market. So let more people to like LNT’s products. Industry consolidation. Business environment becomes less favorable. It’s good for LNT to turn around based on the big scope and the existed structure.
CONS: This measure is also likely to lose some customers. Industry consolidation makes the large companies stronger, but LNT fall behind some big companies. So it’s hard to catch up.
4. PROS: Globalization of the fashion. It’s good for LNT because of their differentiated products.
CONS: Find a partner is difficult. Expansion requires a lot of money.
5. PROS: Learning the successful experiences from Bed Bath & Beyond is good for LNT.
CONS: But LNT has its own characteristics and difficulties
Recommendations:
I recommend the Alternative #2 and #5. Improve online store, online shopping. And Learning the successful experiences from Bed Bath & Beyond.
Problem: In March 2006, Robert (Bob) DiNicola, chief executive officer (CEO) of Linens ‘n Things (LNT), needed a turnaround plan for LNT. The task of restoring the housewares retail chain to a leading position within the industry was a daunting one. The impact of comp etitors such as Bed Bath & Beyond (BBBY) coupled with encroachment from discount retailers like Target and Walmart had eroded LNT’s stature as a housewares retailer.
Alternatives: 1. Improve supply chain, lower their cost. 2. Improve online store, online shopping. 3. Differentiation strategy. 4. Globalization. They can seek international partner to expand their business.
5. Learning the successful experiences from Bed Bath & Beyond.
1. PROS: Cost reduction can better promote consumption. Increase sales.
CONS: Product quality will decline. Reducing the high consumption people.
2. PROS: Online shopping can be better to increase consumption. The Internet provided customers with easy access to pricing information.
CONS: Creating online shopping need a lot of money. And may affect the sales of the store.
3. PROS: Differentiation strategy can open up a new market. So let more people to like LNT’s products. Industry consolidation. Business environment becomes less favorable. It’s good for LNT to turn around based on the big scope and the existed structure.
CONS: This measure is also likely to lose some customers. Industry consolidation makes the large companies stronger, but LNT fall behind some big companies. So it’s hard to catch up.
4. PROS: Globalization of the fashion. It’s good for LNT because of their differentiated products.
CONS: Find a partner is difficult. Expansion requires a lot of money.
5. PROS: Learning the successful experiences from Bed Bath & Beyond is good for LNT.
CONS: But LNT has its own characteristics and difficulties
Recommendations:
I recommend the Alternative #2 and #5. Improve online store, online shopping. And Learning the successful experiences from Bed Bath & Beyond.