Hbc Case Study

Mini-Assignment #2 – HBC-FROM FUR TO FENDI
Name - Akshay Amudhan
Student # - 500538718
Section # - CGMS200 - BAO
Professor – Masoomeh Moharrer
Paper ID - 253082124

#1. The first and most prominent competitive strategy used by HBC is the growth

strategy. When HBC was in debt, it needed to change its way of selling and marketing

products. In order to keep up with big-name markets such as Wal-Mart and Old Navy,

HBC was forced to rethink its strategy in order to grow its operation. Expanding store

locations and promoting a more fashionable image were some ways in which HBC used

the growth strategy to strengthen its market when faced with a crisis situation.

Another competitive strategy used by HBC was the renewal strategy, which
involved

introducing new features in order to stay competitive and overcome weaknesses. This

was implemented through the use of a system called “HBC Rewards” and online

shopping. This enabled HBC to entice new customers without introducing new and

possibly risky products.
HBC also used the stability strategy. Deciding to go back and focus on value-based sales

rather than to promote steep discounts and high-end products.

#2. After the sale to Jerry Zucker and NRDC, HBC immediately implemented the

renewal strategy once more seeking to revive the company through better customer

service, better brands and stronger operations. Things that were preventing them from

further success.

Along with this target, HBC went with the combination strategy. Choosing to re-launch

the brand “Room” at one of its locations in Toronto. Focusing on two different strategies

together made HBC even more profitable. Finally, HBC used the Stability strategy to stay

competitive by further building upon what brought them prior success, hoping to launch

“Room” in other major cities and to capitalize on their Canadian history.

#3. The first and most important strategy/decision chosen by HBC prior to its sale to

Jerry Zucker was the growth strategy. This is a corporate-level strategy because it

directed the organization as a whole towards one particular target/goal. Thus pushing

HBC towards a sustainable competitive advantage. Another corporate-level strategy
was

when HRDC bought HBC, it quickly choose a growth strategy and pushed toward a

intended goal using the entire company.

A business-level strategy was used when HBC decided to better its customer service as

well as to promote a more fashionable image. These can be defined as business-level

strategies because they involved a single business-unit, or a certain product line/area. The

inclusion of the “HBC Rewards” can also be consider as an business-level strategy

largely because it focused on a single area of concern within the whole organization.