Case Study Description of EILEEN FISHER: Repositioning the Brand
Well-established fashion brand Eileen Fisher has traditionally appealed to older women. However, to drive growth, Eileen Fisher's management team wants to target a younger demographic and has revamped its Fall product line to offer more fashionable styles to appeal to younger women. But, repositioning the brand has proven to be harder than expected. This case explores the challenges of appealing to new target markets, without alienating existing customers. The case follows Eileen Fisher's initial forays into social media as they chase a younger demographic, and demonstrates the opportunities and pitfalls that await big brands when they enter the world of Web 2.0.
Authors :: Anat Keinan, Jill Avery, Fiona Wilson, Michael I. Norton
Topics :: Sales & Marketing
Tags :: Collaboration, Competition, Corporate communications, Social enterprise, Social platforms, Social responsibility, Strategy execution, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "EILEEN FISHER: Repositioning the Brand" written by Anat Keinan, Jill Avery, Fiona Wilson, Michael I. Norton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Eileen Fisher's facing as an external strategic factors. Some of the topics covered in EILEEN FISHER: Repositioning the Brand case study are - Strategic Management Strategies, Collaboration, Competition, Corporate communications, Social enterprise, Social platforms, Social responsibility, Strategy execution and Sales & Marketing.
Some of the macro environment factors that can be used to understand the EILEEN FISHER: Repositioning the Brand casestudy better are - – digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic , increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China,
increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of EILEEN FISHER: Repositioning the Brand
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in EILEEN FISHER: Repositioning the Brand case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Eileen Fisher's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Eileen Fisher's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of EILEEN FISHER: Repositioning the Brand can be done for the following purposes –
1. Strategic planning using facts provided in EILEEN FISHER: Repositioning the Brand case study
2. Improving business portfolio management of Eileen Fisher's
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Eileen Fisher's
Strengths EILEEN FISHER: Repositioning the Brand | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Eileen Fisher's in EILEEN FISHER: Repositioning the Brand Harvard Business Review case study are -
Ability to lead change in Sales & Marketing field
– Eileen Fisher's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Eileen Fisher's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Eileen Fisher's is present in almost all the verticals within the industry. This has provided firm in EILEEN FISHER: Repositioning the Brand case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Eileen Fisher's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in EILEEN FISHER: Repositioning the Brand Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Eileen Fisher's is one of the leading recruiters in the industry. Managers in the EILEEN FISHER: Repositioning the Brand are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Eileen Fisher's is one of the most innovative firm in sector. Manager in EILEEN FISHER: Repositioning the Brand Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Learning organization
- Eileen Fisher's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Eileen Fisher's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in EILEEN FISHER: Repositioning the Brand Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Eileen Fisher's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
High brand equity
– Eileen Fisher's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Eileen Fisher's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Eileen Fisher's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Eileen Fisher's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Eileen Fisher's are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Eileen Fisher's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Eileen Fisher's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Eileen Fisher's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Eileen Fisher's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses EILEEN FISHER: Repositioning the Brand | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of EILEEN FISHER: Repositioning the Brand are -
Skills based hiring
– The stress on hiring functional specialists at Eileen Fisher's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Eileen Fisher's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study EILEEN FISHER: Repositioning the Brand can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the EILEEN FISHER: Repositioning the Brand HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Eileen Fisher's has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study EILEEN FISHER: Repositioning the Brand, in the dynamic environment Eileen Fisher's has struggled to respond to the nimble upstart competition. Eileen Fisher's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Products dominated business model
– Even though Eileen Fisher's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - EILEEN FISHER: Repositioning the Brand should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Eileen Fisher's has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Eileen Fisher's even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Anat Keinan, Jill Avery, Fiona Wilson, Michael I. Norton suggests that, Eileen Fisher's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study EILEEN FISHER: Repositioning the Brand, is just above the industry average. Eileen Fisher's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Increasing silos among functional specialists
– The organizational structure of Eileen Fisher's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Eileen Fisher's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Eileen Fisher's to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Eileen Fisher's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study EILEEN FISHER: Repositioning the Brand has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Eileen Fisher's 's lucrative customers.
Opportunities EILEEN FISHER: Repositioning the Brand | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study EILEEN FISHER: Repositioning the Brand are -
Creating value in data economy
– The success of analytics program of Eileen Fisher's has opened avenues for new revenue streams for the organization in the industry. This can help Eileen Fisher's to build a more holistic ecosystem as suggested in the EILEEN FISHER: Repositioning the Brand case study. Eileen Fisher's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Eileen Fisher's to increase its market reach. Eileen Fisher's will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Using analytics as competitive advantage
– Eileen Fisher's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study EILEEN FISHER: Repositioning the Brand - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Eileen Fisher's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Eileen Fisher's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Eileen Fisher's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Eileen Fisher's to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Eileen Fisher's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Eileen Fisher's can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Eileen Fisher's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, EILEEN FISHER: Repositioning the Brand, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Eileen Fisher's can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Eileen Fisher's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Eileen Fisher's is facing challenges because of the dominance of functional experts in the organization. EILEEN FISHER: Repositioning the Brand case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Eileen Fisher's in the consumer business. Now Eileen Fisher's can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Eileen Fisher's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats EILEEN FISHER: Repositioning the Brand External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study EILEEN FISHER: Repositioning the Brand are -
Technology acceleration in Forth Industrial Revolution
– Eileen Fisher's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Eileen Fisher's needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Eileen Fisher's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study EILEEN FISHER: Repositioning the Brand .
Stagnating economy with rate increase
– Eileen Fisher's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Eileen Fisher's in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Eileen Fisher's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Shortening product life cycle
– it is one of the major threat that Eileen Fisher's is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Eileen Fisher's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Eileen Fisher's.
High dependence on third party suppliers
– Eileen Fisher's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Eileen Fisher's in the Sales & Marketing sector and impact the bottomline of the organization.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Eileen Fisher's needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Regulatory challenges
– Eileen Fisher's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Eileen Fisher's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Eileen Fisher's business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of EILEEN FISHER: Repositioning the Brand Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study EILEEN FISHER: Repositioning the Brand needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study EILEEN FISHER: Repositioning the Brand is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study EILEEN FISHER: Repositioning the Brand is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of EILEEN FISHER: Repositioning the Brand is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Eileen Fisher's needs to make to build a sustainable competitive advantage.
