GMS200-101

Mini Assignment #2
Case Study 10: Hudson’s Bay

Question2)

Describe the competitive strategy bused by HBC after its sale to Sucker and NRDC.

What strategy is HBC adopting now?

Answer2)

Following the sale to HBC by Zucker, the new strategy was to focus on developing
operations and increasing customer satisfaction. After the passing of Zucker, HBC was
purchased by NRDC. NRDC’S strategy also included using the di erentiation strategy to
reinvigorate HBC. NRDC intended to improve their products and provide better services.
They discontinued more than 60% of their products and created “The Room”, a VIP suite
at one of their Toronto locations that featured top-tier designers. The overall goal was to
entice customers to return. The di erentiation strategy was successful, allowing them to
reveal a deal with the Canadian Olympic team, which had customers returning,
particularly those who hadn’t been to the Bay in a long time. HBC is currently pursuing a
market expansion strategy by collaborating with the British-based store “Cheap Chic” to
open inside their stores. In 2016, they stated that they would expand online by acquiring
the ash sale site “Gilt Group”. Expanding into the E-commerce eld is a calculated move
because E-commerce revenue is increasing year after year, and as technology advances,
consumers are more likely to buy online rather than in-store.

HBC has also been expanding internationally. They announced the opening of twenty
Hudson Bay and Saks Fifth Avenue stores in Europe, primarily in the Netherlands. They
will be introducing themselves to a completely di erent and new market by doing so.
Overall. Following the scale of HBC to NRDC and Zucker, they began using di erentiation
strategy and the market expansion strategy, both of which resulted in the company
improving products, customer satisfaction, expansion, and overall pro ts.

Question3)

What types of things should Richard Baker, as HBC’s CEO and “strategic leader”, be
doing with respect to the company’s employees to ensure successful strategy
implementation?

Answer3)

Richard Baker, HBC’s “strategic leader”, should incorporate new and improved strategies
in collaboration with the company’s employees. Nowadays, we live in a technologically
advanced world where products are purchased online, communication and interactions
are conducted online, and everything is completed online with great ease. Baker should
consider improving the company’s e-commerce strategy as well as hiring quali ed
employees to carry it out. Having HBC sell products and services online allows customers
to shop online, which saves them time and convenience. It also bene ts HBC by
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increasing revenue through online sales. Customers are more likely to purchase more
products under the current customer reward programme because they can accumulate
points over time and receive special discounts and o ers. This allows for the collection of
Information and data on customer behaviour so that they can improve using their
feedback. Richard Baker must ensure that his vision is shared by all of his employees.
Reviewing new ideas and putting them into action can help the company be very
successful in the long run if all employees follow through. All employees in the company
must have similar goals, such as increasing sales or attracting new customers. And at
last, Baker’s role is to empower his employees in order to ensure that they are performing
their duties correctly and in accordance with the company’s standards.

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