Williams Sonoma Case study
1. If the Williams-Sonoma continues with its present strategies and objectives, where will it be in five years?
As said by Rouse (2005) author of the Williams-Sonoma case study, Williams-Sonoma uses the diversification growth strategy. According to the text with this strategy the company expands product lines by moving into other industries (Wheelen & Hunger p. 208 par. 4). Initially Williams-Sonoma “opened its first store in 1956, selling a small array of cookware imported from France. Since then, the brand has expanded to hundreds of products from around the world, more than 250 stores nationwide, a direct-mail business that distributes millions of catalogs a year, and a highly successful e-commerce site” (Williams-Sonoma par. 2). Williams-Sonoma current lines include: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PB Teen, Hold Everything, West Elm, and William Sonoma Home. (Rouse p. 1 par. 1). If the company continues to grow and delve into other innovations and markets it will have large market shares within the next five years. Due to the nationwide economic decline the company may suffer or face some difficulties caused by its high prices that only target the wealthier. Consumers may began to be more conservative in their spending and looking towards cheaper home good alternatives such as the competitors listed in the case study: Crate & Barrel, Restoration Hardware, Pier 1 Imports, and The Bombay. If the company continues to focus on its current stores it will be successful in the next five year. Focusing on bringing in products that also complement outside of the 10% wealthy consumer (Rouse p. 5par. 4) will bring Williams-Sonoma more customers and more profits. Williams-Sonoma can quickly accomplish these goal through campaigning and using its website as the main avenue for advertising more affordable products. Williams-Sonoma should focus on its current lines with strong branding reputation with a broader costumer base.
References
Rouse,
As said by Rouse (2005) author of the Williams-Sonoma case study, Williams-Sonoma uses the diversification growth strategy. According to the text with this strategy the company expands product lines by moving into other industries (Wheelen & Hunger p. 208 par. 4). Initially Williams-Sonoma “opened its first store in 1956, selling a small array of cookware imported from France. Since then, the brand has expanded to hundreds of products from around the world, more than 250 stores nationwide, a direct-mail business that distributes millions of catalogs a year, and a highly successful e-commerce site” (Williams-Sonoma par. 2). Williams-Sonoma current lines include: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PB Teen, Hold Everything, West Elm, and William Sonoma Home. (Rouse p. 1 par. 1). If the company continues to grow and delve into other innovations and markets it will have large market shares within the next five years. Due to the nationwide economic decline the company may suffer or face some difficulties caused by its high prices that only target the wealthier. Consumers may began to be more conservative in their spending and looking towards cheaper home good alternatives such as the competitors listed in the case study: Crate & Barrel, Restoration Hardware, Pier 1 Imports, and The Bombay. If the company continues to focus on its current stores it will be successful in the next five year. Focusing on bringing in products that also complement outside of the 10% wealthy consumer (Rouse p. 5par. 4) will bring Williams-Sonoma more customers and more profits. Williams-Sonoma can quickly accomplish these goal through campaigning and using its website as the main avenue for advertising more affordable products. Williams-Sonoma should focus on its current lines with strong branding reputation with a broader costumer base.
References
Rouse,
References: Rouse, M. M. (2005). Internet Mini Case Study #6: Williams-Sonoma. Retrieved from Pearson Higher Education http://www.pearsonhighered.com/wheelen/cases.html. Williams-Sonoma. (2014). Retrieved from http://www.williams-sonoma.com/customer-service/about-us.html?cm_type=fnav http://www.williams-sonoma.com/customer-service/about-us.html?cm_type=fnav Paragraph 2 Rouse, M. M. (2005). Internet Mini Case Study #6: Williams-Sonoma. Retrieved from Pearson Higher Education http://www.pearsonhighered.com/wheelen/cases.html.