Let’s take this private: Linens ‘N things versus bed bath and beyond Harvard Case Solution & Analysis

Let’s take this private: Linens 'N things versus bed bath and beyond Case Solution

1.      Briefly describe (1 or 2 paragraphs) the dynamics of the housewares industry and relevant background information on Linens ‘n Things at the time of the case.

The dynamics of the Houseware Industry:

House ware industry can accelerate its growth if it responds to key retail and customers. The retail sector takes large shares in house ware industry: for example, furniture increased to 10.4% growth. The case shows the House ware is most competitive and broad segment that take 6% of market share. The five largest firms in the industry Wal-Mart, Target, K-mart-T.J Maxx, and Big Lots cover 60% of sales made in 2004. Every company in the industry adopts differential strategies to attract niche market customers. It is observed that Wal-Mart is offering low-end marketing strategy that sells groceries and furniture at an attractive price with a high level of service, quality. This is what Target is doing as well.

Along with this, the stores are making large changes in the specialization of homemade crafts and importing goods. Continuous improvement in Houseware tends to create a clear picture in customers mind to pay for the high-quality products and understand the value of a good agreement at a reasonable price. It is observed that House ware makes small purchases frequently, which has decreased the demand for department stores. House ware has even integrated the internet as web sales gave the company a large competitive edge and increased the business operations because easy access helps to attract the customers. Moreover, they decide the price from competitor’s point of view.

Background information on Linens ‘n Things at the time of the case

LNT was founded in 1975. At the time of the case, the Linen ‘N Things (LNT) and Bed Bath & Beyond emerged as the two big box retailer in North America. Both had the same marketing strategies and cost leadership strategies, both of the companies achieved the market share in just four years. However, different decision-making led to different ways for both companies. The objective of both companies was to offer high-quality products at a competitive price. However, the idea of LNT to centralize resulted in a great competition between Wal-Mart and Target Corporation, with the mission statement of providing high-quality service with the environmental value- price. The LNT was acquired with $ 1.3 billion of market capitalization, and BBBY was acquired with $ 10.7 billion by private equity (Apollo) in 2006 and then Robert DiNicola was hired as CEO who was formulated to turn around the company.

2. Assume you are Robert DiNicola, CEO of Linens N Things. What specific steps would you take to turn around Linens ‘n Things?

The LNT has built centralized warehouse to offer the products at the fair price and competing with its two large competitors. Therefore, DiNicola should focus on specific steps to turnaround LNT. They include:

  1. Improve the supply chain that would help to distribute the product and try to cost it lower as the company can generate high profit by optimizing the cost.
  2. He should adopt the differentiation strategy from its major competitors and increase the customer circle by offering different marketing strategies.
  3. He should focus on improving the web sales that requires improvement in online stores and online shopping; it can be possible by providing effective marketing advertisements.
  4. Along with this, he should focus to expand the business globally that requires a search of an international partner.
  5. And adopting the successful strategies of both LNT and BBBY and carry out the innovative change to increase the performance further.................                                                                                                                                                                                                                       This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

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