Rent The Runway Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Rent The Runway Case Solution

Decision to pursue each action

No. Actually the initial purpose of company was to meet the break-even point but it cannot be a long term goal because in future company have to expand its business. After adding jewelry and accessories the company need to generate the higher profits and do more sells.

Important business actions to validate

As Fleiss and Hy man know that the chances of business success can increase if company provide quality services to the consumers and add value proposition for the consumers. Rent the runway is a successful business concept because it was fulfilling the dram of women to wear designer dresses at reasonable prices. The value proposition was to provide designer dresses and the great feeling of wearing designer dresses. They develop an emotional connection through advertisement techniques and develop huge consumer base. But it is important for company to improve the consumer experience through technology and improving the consumer service for consumers. Company need to work on their operations and technology and that require additional funding and these improvements will help them to expand business and capture market share.

Different actions

I would suggest the cofounders to focus on the current consumer market and try to improve as much as they can. Cofounders should work their operations and increase the efficiency in their operations. Along with that cofounders should closely analyze the factors that can help company to increase consumer base and add value for consumers. Currently it is required to stabilize what is going on rather that jumping into another product line.

Question 2

The demand for rental dress was increasing and the initial success has possess a threat of new entrant in the market. As the business concept is easy to copy. In order to maintain the market share in the market and to be sustainable in the competition; it is recommended to accelerate the funding to invest in inventory management and to add product range. RTR has to add value in order to acquire more consumer’s base. To increase the second funding RTR has to raise funds from VC firms. This funding will help RTR to hire more employees and improve operational systems. But there is a risk in this option as it can divert the business from its current model and can increase burden over cofounders.

Whereas adding new segments contain higher profit margins for the company and it would allow RTR to improve consumer’s experience through the involvement of stylists and provide suggestion of whole look. This have enough potential for future growth but the risk is that this option is not profitable for company.

So, in my opinion; the company should stick with the main idea and generate funding to improve the operations and to increase the efficiency of its operations and add more inventory in the stock to serve huge customer base.

Question 3

As RTR was focused and they already have long-term plans to enter into new product segments in future but due to the successful launch and increasing consumer demand cofounders changed their decision and was considering to launch new segments so earlier. But this was not a feasible option for cofounders at this moments. This hustle can create business failure for the cofounders and can end the business right after start...................................

Rent The Runway Case Solution

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