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Lands End Ms Essay

816 words - 4 pages

Lands' End –Case

Based on article of Communication of the Association for Information Systems

Blake Ives, Gabriele Piccoli:

“Custom Made Apparel and Individualized Service at Lands' End”

1. Estimate the impact of custom-tailoring compared to in-store purchases of ready-to-wear on the following cost factors: equipment, labor, inventory, shipping, and advertising. Estimate the impact of each, on overall costs, on a really rough range from – 9 to +9, where -9 would be much lower cost in the grand scheme of things, 0 would be the same cost, and +9 would be much higher cost. Add up your estimates and derive a net or total. If the answer does not seem to make sense, make ...view middle of the document...

| | |Loyalty to the custom apparel products remains high, if supported by speed & quality along with |
| | |excellent customer service. |
|Bargaining power of suppliers |L |Variety of manufacturers available, moreover, selected ones are being provided with installation|
| | |of ASI programs, which makes them to increase productivity and secure business, on top of this |
| | |their brands are kept/promoted. |
| | |Suppliers, retailers & distributors could have relatively more power, however their pressure is |
| |M M |minimized with merchandize exclusivity and also with sales volume growth. |
| | | |
| | |ASI should be considered as special supplier, based on proprietary customizing IT solution and |
| | |partnership. |
| |H | |
|Threat of substitute products |M |Ready-to-wear clothing is broadly available and convenient (at stores or ordered by catalog), is|
| | |less risky, less confusing and choice-demanding, quite aggressive in marketing therefore it |
| | |stays as strong alternative to custom-tailored clothing. |
|Industry competitors |H- |Direct competition exists in few segments: |
| | |customization, mostly targeting teens, |
| | |elite segment (Brook Brothers), however limited by 1 store/city and with more complicated |
| | |customization process. |
| | |Levi’s “Original Spin” similar, but required personal visit for measurement. |
| ...

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