Hbc Essay

1. Describe at least three competitive strategies used by HBC prior to its sale to Zucker and NRDC. Also, please state whether the three strategies you describe are corporate or business level strategies (2 marks).

Prior to its sale to Zucker, HBC implemented some competitive strategies in order to regain power in the industry and to stay afloat despite economic downturns of the 1980s. One corporate level strategy that HBC did was that they planned a strategic expansion in order to solidify its share of the market by acquiring K-Mart Canada. Thereafter, since the 1980s, when big box stores were becoming popular, HBC had to step up their competitive edge by changing something about their price and merchandise (Schermerhorn and Wright, 2014).

Describe at least three strategies HBC adopted since the sale. Also, please state whether the three strategies you describe are corporate or business level strategies (2 marks).

Since the sale, HBC continued to adopt strategies to succeed in the industry and to be attractive to its consumers. Immediately, under the control and management of NRDC, HBC focused on the customer with a business level strategy that dropped 60% of its former brands and launched a strategy called “The Room”, a VIP suite at a Toronto location, which included choices of clothing and accessories from Chanel, Armani and Ungaro (Schermerhorn and Wright, 2014). A corporate level strategy that HBC had was when they became the official clothing line for the Canadian Olympic team. From 2006 to 2012 HBC was selling Winter Olympics apparel and in 2010 when the Olympics were in Vancouver, HBC became very popular (Schermerhorn and Wright, 2014). New customers and customers that had not shopped at HBC for many years came running back to buy this line of hoodies, mittens, hats, to name a few (Schermerhorn and Wright, 2014). HBC also conducted another business level strategy by renovating their stores to continue the theme of redesign and revitalizing the feel of their locations and overall look (Schermerhorn and Wright, 2014). At that point, HBC was offering a higher end of fashionable items such like Hugo Boss, Juicy Couture and Theory, which expanded their e-commerce (Schermerhorn and Wright, 2014). One last