Zale Case Study
Zale
Introduction Zale Corporation is the largest chain of specialty retail jewelry stores in the United States. It currently operates 2,349 stores in the United States, Puerto Rico, and Canada, employs about 16,900 employees, and operates in various segments serving different customer demands. Zale Corporation has been profitable throughout most of its history. However, Zale has recently encountered setbacks including unprofitable margins, unstable leadership, declining market share, and a 50 percent drop in 2006 net income to $53.6 million. Zale’s Revenues in 2007 declined slightly from 2006 to $2.4 billion. Zale is now going back to its roots with a new strategy that focuses on Middle America, wide merchandise assortments, competitive pricing, great value, and a new CEO to execute this strategy, Mary Burton. Ms. Burton’s first full year as Zale’s new CEO was 2007.
Mission Statement The Mission of Zale Corporation is to be the best specialty retailer in North America. Our goal is to develop and maximize the finest collection of jewelry brands in order to build lasting customer relationships that will generate solid returns for our shareholders.
Internal Analysis And Internal Evaluation Matrix The firm is performing above average.
External Analysis And External Evaluation Matrix
The firm is performing above average.
Competitive Analysis Porter’s Five Forces Model:
1. Rivalry Among Competing Firms
a. Tiffany and Signet are the primary competitors of Zale. Both of these corporations have shown significant growth in the past few years. This poses a threat to Zale as in the future they may take market share away from Zale. The rivalry that is existent amongst these firms comes from the strategies that are implemented by one another. A new technique or strategy that is brought about by one firm will give that firm a strong advantage for a short period of time. When the other firms catch on and use the same techniques/
Introduction Zale Corporation is the largest chain of specialty retail jewelry stores in the United States. It currently operates 2,349 stores in the United States, Puerto Rico, and Canada, employs about 16,900 employees, and operates in various segments serving different customer demands. Zale Corporation has been profitable throughout most of its history. However, Zale has recently encountered setbacks including unprofitable margins, unstable leadership, declining market share, and a 50 percent drop in 2006 net income to $53.6 million. Zale’s Revenues in 2007 declined slightly from 2006 to $2.4 billion. Zale is now going back to its roots with a new strategy that focuses on Middle America, wide merchandise assortments, competitive pricing, great value, and a new CEO to execute this strategy, Mary Burton. Ms. Burton’s first full year as Zale’s new CEO was 2007.
Mission Statement The Mission of Zale Corporation is to be the best specialty retailer in North America. Our goal is to develop and maximize the finest collection of jewelry brands in order to build lasting customer relationships that will generate solid returns for our shareholders.
Internal Analysis And Internal Evaluation Matrix The firm is performing above average.
External Analysis And External Evaluation Matrix
The firm is performing above average.
Competitive Analysis Porter’s Five Forces Model:
1. Rivalry Among Competing Firms
a. Tiffany and Signet are the primary competitors of Zale. Both of these corporations have shown significant growth in the past few years. This poses a threat to Zale as in the future they may take market share away from Zale. The rivalry that is existent amongst these firms comes from the strategies that are implemented by one another. A new technique or strategy that is brought about by one firm will give that firm a strong advantage for a short period of time. When the other firms catch on and use the same techniques/
Cited: 1) www.zale.com 2) http://www.scribd.com/doc/32609518/Zale-Corporation 3) Fred R. David. Strategic Management:Concepts and Cases.12th. Ed.,Prentice-Hall. 2009