When Strategy Pales: Lessons from the Department Store Industry Harvard Case Solution & Analysis

Traditionally, the store was clearly the center of retail activity in the cities and towns in the United States during the first half of the 20th century. However, at the end of the 1970s and beyond, the industry department began to experience financial problems, and serious questions have been raised whether the deaths were outstanding. This article traces the evolution of the industry and analyzes some of the key dynamics of change in the retail sector, including the emergence of new alternative retail formats, such as discount stores and category killers. This study further examines the main strategies used by leading traditional stores with reference to the new models of the industry life cycle and strategic framework for positioning. Of particular interest is the discussion about: traditional department stores have been "locked in" to reduce the trajectory? How effective was their strategies to deal with the decline of the industry? And the fact that there were and are positioning options available to traditional department stores? "Hide
by Homer H. Johnson, Kim Sung Min Source: Business Horizons 11 pages. Publication Date: November 15, 2009. Prod. #: BH360-PDF-ENG

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