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.
Rouse, M. M. (2005). Internet Mini Case Study #6: Williams-Sonoma. Retrieved from Pearson Higher Education http://www.pearsonhighered.com/wheelen/cases.html. Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy (12th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Williams-Sonoma. (2014). Retrieved from http://www.williams-sonoma.com/customer-service/about-us.html?cm_type=fnav
2. If you were the CEO of William-Sonoma, what strategies would you recommend, and why? As the CEO of William-Sonoma I would first suggest having a line of home and kitchen products that are set with a lower price point. Many customers cannot afford the products that Williams-Sonoma sells. Since Williams-Sonoma current lines all target the wealthier audience incorporating a line with more economical prices would be a great way to expand. This will target and attract a whole new audience and bring in more customers. I would also suggest having a line specifically geared towards college students. Currently there is a subset of the PB teen line titled dorms. This market is very prominent in terms of housewares needs. College students leave home and have the need for household and kitchen goods. This is also a great target market because many students going to college or in college have part time jobs and can afford to purchase good with their own money. Along with the creation of this college student line I would suggest that the prices be affordable for the working student as well. Your average student cannot afford high end goods and is not looking for high end goods either. The last strategy I would suggest is focusing on the products and lines that Williams-Sonoma already has. As I browsed the website and read the case study, I have found that the company is involved in many different markets and has several retail segments and concepts. This makes it difficult for a consumer to under the brand and recognize it as a reputable company. Due to...
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.
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