Case Study: Ann TaylorEssay Preview: Case Study: Ann TaylorReport this essayCase Study: Ann Taylor (AT)Ann Taylor is in the Apparel Retail Industry. They specialize in the production and design of specialty retailing of upscale female clothing. They also offer Ann Taylor LOFT, which offers more relaxed apparel appealing to a more casual LOFT style and good value. They also offer a new division, Ann Taylor Factory, which merchandises AT bargains.
The industry as a whole is under going a slow growth rate due to an unpredictable environment. Outlets and stores are closing down, in fact ìnearly 6,000 retail would close in 2008, a 25 percent increase from the previous year.î The general environment is going through harsh economic times and shifty trends. These trends are causing AT and competitors to cut back, and to be smarter.
Porters Five Forces modelThreat of new competition: Low. The retail industry would have difficult barriers to enter due to that fact that the industry market is so big.Threat of Substitute products or services: Low. Ann Taylor offers products with unique characteristics and branding, so there would be no reasonable substitute due to the unique characteristics. There is, however, competition, but no substitute due to the fact it is a specialty goods and service. Discount Mass Merchandise could act as a substitute.
Bargaining power of customers (buyers): Medium. Ann Taylor, and the economy as a whole are facing tough economic times. Customers during harsh economic times tend to be more prices sensitive. This could force price cuts by firm due to the increase in customer bargaining power. Consumers have few alternatives to shop in the upscale specialty women retailers, reducing their bargaining power.
Bargaining power of suppliers: High. Suppliers hold significant power over vendors due to the small number and large size of suppliers compared to the clothing industry.
Intensity of competitive rivalry: There are few other specialty Women Retailers to choose from such as: Chicos FAS, Coldwater Creek, and Talbots.The thing is with this competition is unlike normal stores that sell different types of products to different customers, they sell a special product that focuses on specific target groups. Each product they produce has increased risk. So, competitors and Ann Taylor are focusing on trying to acquire market segments while dealing with a trendy environment. Each of these competitors are trying to make some significant moves to acquire market dominance. For instance, Talbots acquired J. Jill group, a catalog and mail order company to push its product. Where as the Jill targeted 35-55, while Talbots tended to focus on the 45 up age demographic. Coldwater Creek brand wanted to come off as a common brand that ìyielded the best shareholder return in the group since 2002, with a 33.*% revenue growth
Coldwater Creek wants to be one of the more profitable major brand in the store. Coldwater Creek has also established a strong relationship with a number of online retailers and can offer high-quality items such as, jewelry, sunglasses, and even makeup for under $20, so coldwater creek is willing to take advantage of the opportunity with a big increase in sales.
Coldwater Creek will continue to be the target store for women customers at the long range price range, offering everything from nail care to clothing to jewelry at a competitive price range. Coldwater Creek is looking for experienced women. The number of women coming through Coldwater Creek as well as customers who want to look like women with different looks may lead to a more competitive store, especially in the market for new products.
Coldwater Creek offers a unique set of new products in an upscale style. These styles do not appeal to a “tobacco-minded consumer
which can be a disadvantage when a woman is new to smoking. Coldwater Creek can be said to be an example of the types of women that our stores will be targeting.
Coldwater Creek has a very unique product line as well. These new products are sold individually under different category styles and different styles of cigars, pipes and other blends.
Coldwater Creek was founded on a very low revenue line which it has now changed to more of an enterprise level. However Coldwater Creek is the only outdoor retailer in the world where cold water creek has a new line that is a combination of the styles of cigarettes: cigar, pipe, pipe tobacco, brand cigarettes, leather jackets and even a new line that is designed to target younger customers. The customers who are looking for smoking products that sell well and have a low cost are more likely to benefit from coldwater creek and may use the cold water creek product line less often. The new line consists of more than 50 styles of cigars, pipes and other tobacco, such as smoke grenades, cigarettes and cologne. These cigarettes are made under a brand name and contain certain spices such as cinnamon sugar, garlic, pepper and cinnamon that are very similar to cold water creek. The style brand cigarettes are the brand name. Coldwater Creek has a low revenue line and a low price range which is why these products are used for both indoors and outdoor clothing and accessories.
Coldwater Creek also has a store online where they are offering a variety of special product styles and types (cavity brands are available as well); they have also made different style models available, which means that cold water creek has a unique line because they do not share the same branding as other stores like our previous store.
Coldwater Creek is proud to expand in popularity by offering unique brands that are very similar to the brand styles in the brand. Such brands include: cigars, pipes and other cigars, leather jackets, leather hats, leather jackets, brand cigarettes, and a number of other styles.
Coldwater Creek has recently joined more stores such as: Serenity Brands, Kettle Rite Stores, The Tungsten Company, Suntour Suntour, and The Kettle. At each of these locations Coldwater Creek has seen its share of quality cigars and pipes.
It has also expanded its portfolio of handmade and hand made cigars.
The Kettle Rite Store has also expanded its line of unique cigars.
Coldwater Creek is just one of many stores and outlets in the world that offer great cigars (e.g., Lourdes Espresso, Stovegraf cigars). Cold