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Let’s Take This Private: Linens ‘n’ Things Versus Bed Bath & Beyond

Essay by   •  August 13, 2019  •  Case Study  •  680 Words (3 Pages)  •  825 Views

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LET’S TAKE THIS PRIVATE: LINENS ‘N’ THINGS VERSUS BED BATH & BEYOND.

Problem Statement: Linens and Things (LNT), a houseware retail chain business, has been recently acquired by Apollo Management and National Rural Development Corporation (NRDC), making LNT a private venture, is assigned with the challenge to come up with a strategy to push LNT in the path of growth, profitability and sustainability.

Since LNT is operating in a very dynamic environment, it is being influenced by consumers spending behavior, technological changes, changing regulatory framework, social trends, government policies, etc. To re-evaluate and redefine the company’s strategy, increase efficiency and enhance customer experience, PEST analysis is used. It will help to analyze the external factors impacting the current situation at LNT.

Political: Recent lower taxation done by govt. has benefitted LNT, leading to profit and more investment in R&D.

Economic:  (Efficiency of financial market.) LNT can explore different financial markets and can be tangible regarding spending in market, as there is easy availability of liquidity. Also, due to increase in consumer’s income & government expenditure, there is a possibility of increase in the economic performance of market that the firm is operating in, to grow by 9-10 %.

Social: There is a difference between the understanding of the market at local level and administration or as shown in the case.  The customers that LNT target are the ones who value “trust” and “experience”. They also pay more preference to post-sale services, as compared to price of the product.

Technology: The product life cycle has decreased owing to the emerging technologies. Suppliers are coming up with innovative product, in short interval of time regularly, to attract as well as capture the market. This creates a problem for LNT market team to endorse/promote diverse products. It creates problem for the operation and R&D department also to come up with a product that meets the expectation of the consumers.

To obtain key insights into both internal and external factors that can impact the performance of the organization, SWOT Analysis can be performed.

Strength: Already established business with defined market & established customer base and also Di Nicola has the experience of taking a failed company and turning it into a success.

Weakness: Low Budget, existing structure of distribution and sales

Opportunity: Being a major distributor in the market the company can collaborate with local players that can help in customization.

 Threat: Cut throat competition; changing political scenarios.

Recommendations:

Political: Although, lifting of the World Trade Organization import quota policy is a benefit for LNT, it’s being misused by the organizations. A strict adherence to the govt. regulations and policies needs to be implemented by LNT in its current trade practices in order to avoid future backfires.

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