Aarons: Household Goods for the U.S. Base of the Pyramid Harvard Case Solution & Analysis

With a $ 2.5 billion system-wide revenues, Aaron, chief rent with option to buy U.S. supplier base of the pyramid continues to grow in a recession, but the general manager RC Loudermilk, Jr. is wondering how long the company can support the rapid growth of the past. Founded in 1955 and publicly listed since 1982, Aaron's success has paralleled the emergence of rental-purchase industry as the main channel for low-income people access to the U.S. durable goods households. In this space, Aaron has only one major national competitor, Rent-A-Center. As he faces the future growth of Aaron, Loudermilk should consider continuing with the basic business model to follow his rival to expand the product line, or connect to a lack of foreign markets. At the same time, the entire lease-purchase industry in the U.S. came under attack by consumer advocates and politicians, as the nation continues to fight a deep economic crisis.
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by Michael Chu, Charles Smithgall Source: Harvard Business School 28 pages. Publication Date: September 10, 2010. Prod. #: 311047-PDF-ENG

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