The case centers around the housewares subgroup within the overall retail sector. During the interval considered by the case (1970s to 2006), housewares in North America found the emergence of two "big-box" retailers - Linens 'n Things (LNT) and Bed Bath & Beyond (BBBY). Despite this extraordinary similarity in beginning states, their performance outcomes diverged. On the surface, both firms were pursuing a similar business-level strategy of cost leadership, but crucial strategic conclusions directed them down rather distinct evolutionary paths.
Let’s Take This Private Linens ‘n Things Versus Bed Bath & Beyond Case Study Solution
Both companies focused on providing consumers with high quality houseware goods in a no-frills, value-priced surroundings, but LNT's determination to assemble centered warehouses - apparently consistent with a cost leadership strategy - ended up bringing it into direct competition with Walmart and Target. By comparison, BBBY allowed for greater decentralization in decision making, thus allowing more store-level decision making and greater customization to local consumers' preferences. Because of this, BBBY was able to better distinguish itself from Target and Walmart. The case allows instructors to introduce fundamental strategy concepts, including industry and environmental investigation, business -level strategies, core competencies and administrative tradition. The case starts right after the acquisition and takes the perspective of the new CEO of LNT, who's tasked with formulating a turnaround plan.
PUBLICATION DATE: August 10, 2010 PRODUCT #: 909M61-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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