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Mini – Assignment #2 – Case: HBC: From Fur to Fendi
1) The HBC has been a influential company for as long as Canada has existed. It began as a fur trading company and has transformed itself into a huge retail corporation that supplies a variety of goods. One of the three tactics, which HBC used to modernize their organization was through diversification. Although, this ended up being unsuccessful. They invested in new business such as; Designer Depot, Style Depot and acquired retailers like K-mart Canada. This was done to represent their company in a more fashionable manner. In addition, HBC also used the HBC reward program and online shopping experience, which involves the differentiation technique. This strategy separates HBC from their competitors and helps them obtain competitive advantage allowing them to appear unique. The last approach, which HBC used, was divestiture, which helped advance the growth of the organization, as well as the current business operations. They did this by vending the company’s assets and natural resources that weren’t considered valuable helping them to focus on the business’s prime motives.
2) After the sale to Zucker, HBC focused on ways, which assisted to modernize the company, along with expanding its profits. There were two strategies that decided to focus on customer satisfaction and the improvement of operations. The first approach that they used was to increase their customer size. They did this by redesigning vintage product line, emphasizing on the company’s rich and flavourful history. Further, they also focused on attracting the attention of current and new customers, by introducing new and fresh products. Sponsoring events has also allowed HBC to use this as a strategic alliance in the revitalization process. With the help of this, they created a new line of Olympic products (including clothing, toys, etc.) making them seem as big supporters of the Olympics, which also allowed them in appealing their products to
1) The HBC has been a influential company for as long as Canada has existed. It began as a fur trading company and has transformed itself into a huge retail corporation that supplies a variety of goods. One of the three tactics, which HBC used to modernize their organization was through diversification. Although, this ended up being unsuccessful. They invested in new business such as; Designer Depot, Style Depot and acquired retailers like K-mart Canada. This was done to represent their company in a more fashionable manner. In addition, HBC also used the HBC reward program and online shopping experience, which involves the differentiation technique. This strategy separates HBC from their competitors and helps them obtain competitive advantage allowing them to appear unique. The last approach, which HBC used, was divestiture, which helped advance the growth of the organization, as well as the current business operations. They did this by vending the company’s assets and natural resources that weren’t considered valuable helping them to focus on the business’s prime motives.
2) After the sale to Zucker, HBC focused on ways, which assisted to modernize the company, along with expanding its profits. There were two strategies that decided to focus on customer satisfaction and the improvement of operations. The first approach that they used was to increase their customer size. They did this by redesigning vintage product line, emphasizing on the company’s rich and flavourful history. Further, they also focused on attracting the attention of current and new customers, by introducing new and fresh products. Sponsoring events has also allowed HBC to use this as a strategic alliance in the revitalization process. With the help of this, they created a new line of Olympic products (including clothing, toys, etc.) making them seem as big supporters of the Olympics, which also allowed them in appealing their products to