Thomas Shop Case Study
The Thomas Shop: A Boutique Business Case Study
Step-by-step approach to a case study:
• Gathering information
• Identifying the problem(s)/issue(s)
• Structure the date/facts
• Consider alternative solutions
• Select the best possible option
• Justification of the selection
Identified problem in The Thomas Shop's case study:
• Survival in the midst of competition by Wal-Mart, Maurices and Kohl
Structuring the data: A company's Business Strategy can be a focus on one or more of the following:
• Cost advantages - Product is cheaper. For e.g. Chinese and Pakistani companies, Wal-Mart,etc
• Quality - Product is better. For e.g. Swiss companies, etc
• Product Differentiation - Product is unique. For e.g. IKEA, Apple, Red Bull, etc
Considering alternative solutions:
The Thomas Shop's business strategy is focus on quality and differentiated products due to customization. It never had a reason to charge less owing to a target market of white men and women, who were effluent. But now, Wal-Mart's Every Day Low Price strategy is competing against them. Kohl is an even bigger threat.
Selection of the best option and its justification:
The best option is the current strategy - A focus on quality and customization. The Thomas Shop certainly cannot compete head-to-head on price but its products' quality would even defeat Kohl. Moreover, her target market is effluent enough to not be price conscious and to not gravitate to Kohl in spite of the comparatively lower quality of its products.
In addition, Customization is the owner, Kathy's greatest weapon against the large retailers - her rivals. Being a small retailer, Kathy can provide more specialised and personalised products to her customers. She indeed, cannot provide special attention to all of them but she can very well satisfy her key clients. Her colour analysis techniques would also aid her in achieving greater customer delight. Also, superior service and merchandising would get her more loyal
Step-by-step approach to a case study:
• Gathering information
• Identifying the problem(s)/issue(s)
• Structure the date/facts
• Consider alternative solutions
• Select the best possible option
• Justification of the selection
Identified problem in The Thomas Shop's case study:
• Survival in the midst of competition by Wal-Mart, Maurices and Kohl
Structuring the data: A company's Business Strategy can be a focus on one or more of the following:
• Cost advantages - Product is cheaper. For e.g. Chinese and Pakistani companies, Wal-Mart,etc
• Quality - Product is better. For e.g. Swiss companies, etc
• Product Differentiation - Product is unique. For e.g. IKEA, Apple, Red Bull, etc
Considering alternative solutions:
The Thomas Shop's business strategy is focus on quality and differentiated products due to customization. It never had a reason to charge less owing to a target market of white men and women, who were effluent. But now, Wal-Mart's Every Day Low Price strategy is competing against them. Kohl is an even bigger threat.
Selection of the best option and its justification:
The best option is the current strategy - A focus on quality and customization. The Thomas Shop certainly cannot compete head-to-head on price but its products' quality would even defeat Kohl. Moreover, her target market is effluent enough to not be price conscious and to not gravitate to Kohl in spite of the comparatively lower quality of its products.
In addition, Customization is the owner, Kathy's greatest weapon against the large retailers - her rivals. Being a small retailer, Kathy can provide more specialised and personalised products to her customers. She indeed, cannot provide special attention to all of them but she can very well satisfy her key clients. Her colour analysis techniques would also aid her in achieving greater customer delight. Also, superior service and merchandising would get her more loyal