Canada Goose Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Strategic Alternatives

Reiss should consider the following four alternatives for the expansion and development of a proper nation-wide retail network.

Status Quo

The company should continue with existing strategies i.e. it should continue its distribution network through local small-sized distribution stores.

Pros: - It will further strengthen its relationships with existing partners; it can avoid the over-expansion of company’s operations, which will avoid the risk of lowering the brand image. It will be able to retain its loyal customers and partners such as Westbrook’s Downtown.
Cons: - It will lose the opportunity to broaden the market. It will not be able to expand its infrastructure through existing strategies. It will lose the chance to get a nation-wide exposure.

Cooperate with the Asmuns Place

The company should accept the offer of Asmuns Place because it will provide them a nation-wide platform to expose their products to both the market segments i.e. men and women.

Pros: - The Company will be able to expose its products to high-end customers, which will ensure its long-term sustainability. It can enlarge the impact of the Canada Goose brand over a number of new markets because of its high level of customer loyalty. This will provide a better place for products of the Canada Goose at their store shelves.
Cons: - It will limit the ordering and promotional activities of the company. It can destroy the unique brand image of the company by integrating their own brand image into the products of Canada Goose. Customers will classify products of the Canada Goose with that of other companies’ products. Canada Goose will be required to offer its products at highly discounted prices.

Cooperate with Levine’s Menswear

It will give a chance to the company to focus upon the Menswear products because Canada Goose is primarily known for its Menswear products.

Pros: - It will allow the company to offer large and flexible jacket styles in its stores. It will allow the company to focus upon the high end adult males, who cares about the price of products don’t rather buy them for their brand and quality.
Cons: - It will limit the scope of the company to offer only men related products. The company will be required to hire a sales representative to run the co-operation, which will increase their operating cost and renders their margins very low.

Should co-operate with both Asmuns Place and Levine’s Menswear

This will provide an opportunity for the company to capture both the men and women segments of the market very easily.

Pros: - This will provide an opportunity for the company to capture both the market niches simultaneously and target the high-end customers of both the segments directly.
Cons: - Asmuns place has specified that they will like to move into the menswear line-up of products in the near future, therefore it will create an inter-organizational conflict of interest among both the partners.

Recommendation

Co-operating with the Asmuns Place will be the best option for the company to consider because it will help the company to build a strong impression upon the customers and will enable it to capture the high-end market niche of both male and female segment. By accepting this offer the 100% markup price and 5% expense to Asmuns Place will generate a substantial profit for the company. Although initially the order for women’s products will be limited, but the increasing demands for the Canada Goose products will also eliminate this drawback in the near future and Asmuns Place will increase the volume of its orders. The high customer loyalty of Asmuns Place will increase revenues of the company which will ultimately increase its overall profitability.

Implementation

Canada Goose should begin their implementation plan by negotiating key terms and conditions of the partnership. They should also ask them to organize sales representative trainings for the company’s existing workforce because Canada Goose has no experience of any sort of nation-wide retail partnership before. The company should also get a timely feedback from Asmuns Place’s customers and executives regarding the effectiveness and market share of its products, so that they can easily change them or integrate additional values in the future.

Apart from all the above discussed important points for the implementation of this strategy, the company should also negotiate that Canada Goose will be permitted to monitor the Asmuns Place promotion strategies so that it can timely prevent any sort of contradiction with the company’s brand value development strategy.................................

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