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CH 3

The document examines Bed Bath & Beyond's decline as a leading retailer due to outdated strategies and failure to adapt to changing customer demands. A new CEO was appointed in 2019 to emphasize technological advancement, operational efficiency, and unique product offerings online and in stores to restore competitiveness.

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Rahul G
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31 views

CH 3

The document examines Bed Bath & Beyond's decline as a leading retailer due to outdated strategies and failure to adapt to changing customer demands. A new CEO was appointed in 2019 to emphasize technological advancement, operational efficiency, and unique product offerings online and in stores to restore competitiveness.

Uploaded by

Rahul G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MANAGEMENT INFORMATION

SYSTEMS
ASSIGNMENT
CASE STUDY ANALYSIS -3
IS TIME RUNNING OUT OF BED BATH & BEYON?

The case study examines Bed Bath & Beyond's rise and issues as a leading
domestic retailer, as well as its eventual collapse as a result of outdated
techniques and a failure to adapt to changing client demands. Despite its early
success, the company struggled to compete with expanding retailers and e-
commerce behemoths like Amazon, Walmart, and Target. Overreliance on
discounts, outdated technology, and a lack of digital innovation hindered its
expansion. Although the company made several acquisitions, none of them
resulted in significant profitability, and its traditional in-store shopping model
became obsolete in the digital age. Mark Tritton's appointment as CEO in 2019
marked a watershed event, bringing in new initiatives that emphasized
technological advancement and innovation.
Tritton's arrival caused a significant reshuffling of senior executives, as well as a
fresh emphasis on technical advances, operational efficiency, and offering
unique product assortments both online and in shops. Bed Bath & Beyond
intends to restore market competitiveness by renovating its stores, expanding
its e-commerce capabilities, and enhancing the overall consumer experience.
The case study illustrates the need for adaptation and innovation in the retail
industry, as well as the challenges that traditional merchants face in the digital
age. It emphasizes the need for strategic leadership, technological innovations,
and customer-centric strategies to be relevant and prosper in a rapidly
changing market environment.

QUESTION ANSWERS
1St Ans) The competitive Forces model:
 New Entrants: Fortunately for BB&B, establishing a home products
business is not straightforward. Making a big splash demands a lot of
money and brand recognition.
 Supplier Power BB&B's huge supplier base gives them bargaining
strength. Some well-known firms, however, may have BB&B under
control.
 Buyer Power: This is when things become tense. Customers now have
a variety of options, ranging from online giants like Amazon to
discount boutiques bursting with deals. To distinguish out from the
crowd, BB&B must put in extra effort.
 Substitutes: Bargain and dollar shops may sell same things at lower
prices. BB&B must persuade customers that their selection and
standards of excellence are worthy the additional cost.
 Competitive rivalry: This is if things become nasty. BB&B competes
with reputable businesses like Walmart and Amazon, both of which
have a significant internet presence. Even Wayfair, which is a pure
online retailer, is joining in the fun.

The Value Chain


 Negotiating excellent agreements with suppliers is critical for BB&B to
secure enough product supply. Their current strategy, which includes
overflowing shelves, may require some tweaking.
 Making Things Happen this is where the magic (or logistics) occurs.
BB&B must properly transport items from warehouses to stores and
customers' doorsteps. Their online fulfillment method might be
simplified.
 Selling Things Convince clients that BB&B is the ideal place to find their
fantasy shower curtain. Their marketing strategy should be more
cohesive, incorporating online and physical shopping approaches.
 Providing outstanding customer service, such as answering questions
and aiding with returns, is vital for retaining client happiness. BB&B's
physical presence may be a crucial asset here, delivering a human
touch that internet vendors cannot match.

2nd ANS) Bed Bath & Beyond (BB&B) is contending with a variety of difficulties
that are threatening its position in the home goods retail business. Let's go
down these issues and their root causes:
Management Considerations:
 BB&B emphasised physical stores above online operations, resulting in
a lack of digital strategy. This resulted in an improperly designed
website and inefficient online order processing.
 Inconsistent Brand Identity: Customers saw an inconsistency between
BB&B's online and in-store experiences, resulting in a distorted brand
image.
 BB&B's emphasis on cost-cutting resulted in outdated technology and
a lack of investment in digital innovation.
 Slow Decision-Making: The business culture discouraged risk-taking
and innovation, limiting BB&B's capacity to respond to changing
market needs.
Organizational Factors:
Unmanageable Inventory: BB&B stocked a wide range of products with
limited availability online, frustrating customers who couldn't find what
they wanted.
Decentralized Buying: Store managers had too much autonomy in
selecting inventory, leading to inconsistencies and a lack of centralized
purchasing power.
Technology Factors:
 Outdated IT Infrastructure: BB&B's technology systems weren't
equipped to handle the demands of modern e-commerce, hindering
online operations.
 Manual Processes: Manual order fulfillment processes slowed down
online deliveries and increased operational inefficiencies.
 Limited Data Integration: BB&B struggled to consolidate customer
data from various channels, making it difficult to execute targeted
marketing campaigns and personalize the shopping experience.

3rd ANS) Bed Bath & Beyond (BB&B) is actively working on numerous
solutions to their problems, but the success of these initiatives is contingent
on many factors.
1. Greater emphasis on digital platforms.
 Advantages: Investing in a user-friendly online platform, optimising
order processing, and boosting digital marketing would enable BB&B
to access a larger online consumer base.
 Drawbacks: This strategy necessitates a significant financial
investment and catching up with established online retailers. Success
is dependent on the efficient integration of online and in-store
experiences.
2. Inventory Optimization:
 Pros: Implementing a "show more, carry less" strategy can free up
in-store space and save inventory costs, allowing customers to
access a wider variety online.
 Cons: Customers who prefer in-store purchases may find this
frustrating. The success of this technique is primarily dependent on
efficient online ordering and fast delivery.
3. Laboratory stores:
 Pros: Lab shops allow for experimentation with store forms and
merchandising, resulting in creative consumer interaction tactics.
 Cons: The success of this effort relies on BB&B efficiently gathering
and analysing data from trial stores, as well as successfully
integrating learnings across the network.
4. Private Label Brands:
 Developing private-label brands may differentiate BB&B and
enhance consumer value.
 Cons: Successful private-label brands demand significant investment
in product development and marketing.

Overall Effectiveness: The efficacy of BB&B's solutions is reliant on


several factors:
 Execution: Can BB&B effectively execute these solutions while
overcoming present limitations?
 Will BB&B successfully integrate online and in-store encounters to
create a unified brand image?
 Can BB&B develop a distinct value proposition that distinguishes
them from the competition?
These strategies have potential, but success is not guaranteed. BB&B must
respond fast, change based on customer feedback, and face the difficulties
ahead. If properly executed, they have the potential to carve out a distinct
market.

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