Babson Case Number: BAB037 | Length: 22 Pages

Abstract

The case examines the strategy of Williams-Sonoma, an up-market catalog and mall retailer, in entering electronic commerce. Ample information is provided to understand the highly successful strategy the firm’s management had employed to achieve extraordinary growth and profitability. Students can investigate the design and successful upgrading of multiple retailing concepts, the use of two traditional retailing channels (mail order and mall outlets), and management’s skillful use of database marketing concepts. With this background, the case affords the opportunity to perform a relatively rigorous strategic analysis of the firm’s profitability, growth, and sustainability. It details management’s early moves into the online competitive environment.

The potential uses of this case study are in a strategy course, in a retailing course, early in a course on strategy in electronic business, or within an advanced strategic marketing management course. Learning opportunities available in studying this case include:
• the requirements of a strong strategy for a retail concept;
• the benefits of a corporate structure using multiple concepts thereby spreading risk while maximizing return on core competencies;
• the use of technical marketing tools and specialist firms in building performance;
• the strategic analysis of the profitability and growth of a business
• the strategic analysis of the sustainability of a business
• an introduction to issues of electronic business, especially in the retailing sector and from the point of view of being in “bricks and mortar” and seeking business from “clicks and mortar.”

Perhaps the highest value of the case is in the integrated addressing of all these various topics. After a class discussion, that could easily extend into a double class, students should have a rich appreciation for advanced issues in contemporary strategy, retailing, and marketing.

Additionally, the case is very suitable for use as a written case analysis. The case presents much rich and quantitative data and a relatively full description of context. The materials should challenge students at any level with the advantage of an industry to which most students relate naturally.