HBC from Fur to Fendi
1. Three strategies HBC employed prior to its sale to Zucker and NRDC were the e-business strategy, differentiation strategy and the growth strategy. HBC has made their company accessible through the internet by creating an online shopping system. This provides customers with the option to shop online rather than having to go to the actual store themselves. HBC also created a rewards program for its loyal customers. These points can be redeemed with every purchase made and would encourage customers to buy more to receive more points. It acts as composition for customer purchases. Lastly, HBC had expanded its corporation to increase earnings and profits. They did this by purchasing other retailers such as Zellers, Home Outfitters and K-Mart Canada.
2. Following HBC’s sale to Zucker and NRDC, three strategies have been implemented. (1) HBC dropped 60 percent if its preceding brands. By doing this, they hoped to draw customers back to their store. (2) HBC also relaunched “The Room”, a luxury VIP suite with high-end designer clothing, shoes and accessories such as Christian Louboutin, Brian Atwood, Alaia and many more. (3) HBC became an official sponsor for the 2010 Vancouver Olympics. They sold Olympic brand merchandise which expanded The Bay’s market segment. Therefore, fans can purchase Olympic merchandise whenever they choose.
3. These strategies can be categorized into two levels of strategies: business and corporate. The business strategies include: e-business strategy, rewards program, and dropping 60 percent of previous brands. The corporate strategies include: relaunch of “The Room”, becoming a sponsor of the Olympics and expansion of the company.
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