SGMA 591: Rabeea Baig (00506057)
Table of Contents
Current Issue Facing the Company4
* Political and Regulatory10
* General Economic Condition12
Porter’s Five Forces Analysis13
* Intensity of Rivalry13
* Potential New Entrants13
Sustainable Competitive Advantage15
Harry Rosen, founder.
Harry Rosen Inc. is a privately owned family corporation that sells high-end men’s clothing. This company was established in 1954 by Harry and his brother Lou Rosen in Toronto. They had originally started as a made-to-measure store on Parliament Street with a $500 down payment (Harry Rosen Inc., 2010a). After having tremendous success, they moved their location closer to the Financial District in order to serve their clientele better (Harry Rosen Inc., 2010a). Many skeptics had criticized their decision, but this strategic move had worked in their favour. As of today, this clothing chain has 16 locations across Canada servicing an array of customers. Originally, their focus was to sell made-to-measure suits, but that has expanded to ready to wear suits, dress shirts and ties, sportswear, footwear and accessories. Designers such as Ermenegildo Zegna, Armani Collezioni, TOM FORD, Brunello Cucinelli, and Canali are featured in their flagship stores. Harry’s relationships with Italian manufacturers have allowed him to feature an in-house casual fashion line as well. As of 2009, Harry Rosen is the only specialty menswear retailer in Canada that has launched an E-commerce website to allow their customers to shop online for certain merchandise. Currently, Harry Rosen has stepped down from any management role and his eldest son Larry Rosen, is the Chairman and Chief Executive Officer (CEO) (Harry Rosen Inc., 2010b).
Harry Rosen Inc. is a Canadian menswear specialty retailer that aims at providing the best shopping experience for their clientele. They have highly trained employees who are knowledgeable about the fashion industry and their customer’s specific tastes and needs. Also, Harry Rosen Inc. offers virtual services through online retailing, and every season they publish their “Harry” magazine to allow their customers to preview the upcoming trends. Strategic Vision
The vision of Harry Rosen Inc. is to strengthen their position as a leading menswear retailer in Canada by doubling sales to $500 million by 2016 (Strauss, 2012a). Through their rising sales, they will re-invest this capital back into the business to help it flourish. Also, with online retailing on the rise, Larry would like to further develop their E-commerce operations (Strauss, 2012a).
Current Issue Facing the Company
There are two issues facing Harry Rosen which are increased competition and growth opportunities.
During the global recession, the retail industry faced many hardships because consumers have to learn how to spend “wisely”. Euromonitor (2011) reported that within the industry there has been an increase in competition. This is a direct result of companies using tactics of heavy discounting to generate revenues and maintain their customer base. Luxury apparel retailers are most affected by these tactics because they lose the majority of their profit margins through discounting. Euromonitor (2011) predicts that due to increased competition there will be “lower spending on high ticket items”. The emergence of popular outlet chains in the United States has allowed...