Retail Execution: Linens 'N Things SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Retail Execution: Linens 'N Things
In the decade that the chairman, president and chief operating officer of Linens 'N Things (LNT) had been leading the firm, there had been significant changes to the industry. Specifically, its main competitor was experiencing higher sales and profits with the result of increased market share. External advice was sought to identify strategies available to LNT to catch up to its competitor and a successful Guest Oriented, Locally-Driven (GOLD) pilot was launched. Due to dwindling interests and internal resistance to the initiative, however, the chairman was left to decide what to do with the roll-out. He had several options to consider: Should he maintain the current pilot, or simply shut it down? Could it be changed or altered to encourage participation? Should it be district-specific? Or perhaps issuing an executive mandate would generate involvement. The chairman knew any decision would have to consider these and other cultural and strategic issues.
Swot Analysis of "Retail Execution: Linens 'N Things" written by Adenekan (Nick) Dedeke includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Linens Lnt facing as an external strategic factors. Some of the topics covered in Retail Execution: Linens 'N Things case study are - Strategic Management Strategies, Competitive strategy, Human resource management, IT, Leadership, Manufacturing, Organizational culture and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the Retail Execution: Linens 'N Things casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, there is backlash against globalization, central banks are concerned over increasing inflation, technology disruption, geopolitical disruptions, increasing energy prices, increasing commodity prices,
increasing transportation and logistics costs, wage bills are increasing, etc
Introduction to SWOT Analysis of Retail Execution: Linens 'N Things
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Retail Execution: Linens 'N Things case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Linens Lnt, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Linens Lnt 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 Retail Execution: Linens 'N Things can be done for the following purposes –
1. Strategic planning using facts provided in Retail Execution: Linens 'N Things case study
2. Improving business portfolio management of Linens Lnt
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Linens Lnt
Strengths Retail Execution: Linens 'N Things | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Linens Lnt in Retail Execution: Linens 'N Things Harvard Business Review case study are -
Sustainable margins compare to other players in Leadership & Managing People industry
– Retail Execution: Linens 'N Things firm has clearly differentiated products in the market place. This has enabled Linens Lnt to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Linens Lnt to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Linens Lnt has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Retail Execution: Linens 'N Things HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Innovation driven organization
– Linens Lnt is one of the most innovative firm in sector. Manager in Retail Execution: Linens 'N Things Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Linens Lnt is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Linens Lnt has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Linens Lnt 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.
High brand equity
– Linens Lnt has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Linens Lnt to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Organizational Resilience of Linens Lnt
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Linens Lnt does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Linens Lnt in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Linens Lnt in the sector have low bargaining power. Retail Execution: Linens 'N Things has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Linens Lnt to manage not only supply disruptions but also source products at highly competitive prices.
Training and development
– Linens Lnt has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Retail Execution: Linens 'N Things 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.
Diverse revenue streams
– Linens Lnt is present in almost all the verticals within the industry. This has provided firm in Retail Execution: Linens 'N Things 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.
Learning organization
- Linens Lnt 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 Linens Lnt is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Retail Execution: Linens 'N Things Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Retail Execution: Linens 'N Things | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Retail Execution: Linens 'N Things are -
Products dominated business model
– Even though Linens Lnt 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 - Retail Execution: Linens 'N Things should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Linens Lnt, firm in the HBR case study Retail Execution: Linens 'N Things needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study Retail Execution: Linens 'N Things 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 Linens Lnt 's lucrative customers.
High cash cycle compare to competitors
Linens Lnt has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Skills based hiring
– The stress on hiring functional specialists at Linens Lnt 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.
Aligning sales with marketing
– It come across in the case study Retail Execution: Linens 'N Things that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Retail Execution: Linens 'N Things can leverage the sales team experience to cultivate customer relationships as Linens Lnt is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Linens Lnt 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. Linens Lnt 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.
Need for greater diversity
– Linens Lnt has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, Adenekan (Nick) Dedeke suggests that, Linens Lnt 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.
No frontier risks strategy
– After analyzing the HBR case study Retail Execution: Linens 'N Things, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Lack of clear differentiation of Linens Lnt products
– To increase the profitability and margins on the products, Linens Lnt needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Retail Execution: Linens 'N Things | 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 Retail Execution: Linens 'N Things are -
Creating value in data economy
– The success of analytics program of Linens Lnt has opened avenues for new revenue streams for the organization in the industry. This can help Linens Lnt to build a more holistic ecosystem as suggested in the Retail Execution: Linens 'N Things case study. Linens Lnt can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Learning at scale
– Online learning technologies has now opened space for Linens Lnt to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Manufacturing automation
– Linens Lnt can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People 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.
Leveraging digital technologies
– Linens Lnt can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Linens Lnt can use these opportunities to build new business models that can help the communities that Linens Lnt operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
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 Linens Lnt in the consumer business. Now Linens Lnt can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Linens Lnt 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 Linens Lnt to hire the very best people irrespective of their geographical location.
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 Linens Lnt 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Linens Lnt can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Linens Lnt to increase its market reach. Linens Lnt 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.
Building a culture of innovation
– managers at Linens Lnt can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Linens Lnt 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, Retail Execution: Linens 'N Things, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Linens Lnt can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Retail Execution: Linens 'N Things External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Retail Execution: Linens 'N Things are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Linens Lnt
– 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 Linens Lnt.
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 Linens Lnt in the Leadership & Managing People sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Linens Lnt in the Leadership & Managing People industry. The Leadership & Managing People 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.
Stagnating economy with rate increase
– Linens Lnt 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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Linens Lnt will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Linens Lnt can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Linens Lnt has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Linens Lnt needs to keep up with the evolution of technology in the Leadership & Managing People 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.
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. Linens Lnt needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Linens Lnt 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 Retail Execution: Linens 'N Things .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Regulatory challenges
– Linens Lnt 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 Leadership & Managing People industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Linens Lnt.
Weighted SWOT Analysis of Retail Execution: Linens 'N Things 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 Retail Execution: Linens 'N Things 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 Retail Execution: Linens 'N Things 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 Retail Execution: Linens 'N Things 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 Retail Execution: Linens 'N Things 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 Linens Lnt needs to make to build a sustainable competitive advantage.
