QUESTION 1:
Rent The Runways (RTR) is fashion ware and clothes offering online company that offers designer dresses to its consumers on rent. The company was co-founded in the year 2009 by two women Jennifer Hymen and Jenifer Fleiss. Today it is one of the leading online fashion ware provider that provides clothes to people who cannot afford to purchase the dress. They do have a few competitors in the industry who also provide the same services but their prices are much higher than RTR and the business structure and service environment of the RTR makes it a much more comprehensive and success story.
Before founding the company rent the runway Jennifer Fleiss worked at Lehman Brothers and Morgan Stanley as a consultant for internal strategy and Jennifer Hymen was a sales and marketing genius who had already worked at different platforms and fields of life. She started as a sales and marketing agent for Star wood hotels and later secured their franchise rights to start Star wood’s wedding business. While, other than that she also worked at wedding channels advertisement and sales team and was also director of new media channel for its sports talent agency.
The two co-founders met at the Harvard Business School while they were doing their MBA there. The idea was a smart piece of Hymen`s mind, she inspired this impressive idea from her sister after seeing the affection and liking for designer outfits that her sister had for designer outfits she realized that these designer outfits had a great attraction and potential market among women of younger age but that was left unexplored due to steep and extraordinary prices of these dresses that this age segment of the fashion industry market could only wish to wear and were forced to wear other local outfits. It was this market that the owners wished to explore, as they believed that this proportion of consumers had volumes of market strength in them to explore.
The initial idea behind the creation of the online company was the realization of the owners that due to very much higher prices of these designer outfits a huge population of the market was feeling neglected and it was their wish to wear these clothes to look beautiful and to boost that inner confidence that was a little neglected as they did not had the purchasing power to afford these dresses. So the co-owners decided to explore this inspiration of the consumers to explore this inspiration of the young age consumers by renting them latest trending outfits for occasions they wanted to wear for very cheap and affordable price. Their approach was a simple viable product approach initially and operated manual systems in the warehouse. But the immediate success of the business and the immense turnover of the costumers. The company had to drastically restructure its policies, organizational structure and aspects.
Initially the approach of the company and their aim was to provide value and convenience to the young consumers of the industry as they could not afford to purchase these designer outfits from high-end retail stores. But as the business expanded and its market increased the owners realized that they were offering much more than just that as the continuous feed backs whether negative about not getting the desired dresses despite booking for the occasions and positives from the consumers showed that it was full filing the dreams and wishes of its consumers that it was also fulfilling their dreams rather than just value and convenience and the company was now trying to keep itself up in line with the expectations of its consumers by increasing its capacity and inventory so that it does not disappoint its customers in delivering them their choice of dress by adopting and evolving itself to this new concept.
QUESTION 2:
The company has been a success story since it was formed. Just two months after it was launched it has expanded rapidly and has gained immense market share in the industry but it has so far not been able to capitalize on that. So the management now realizes this critical issue as stock outs in its inventory was far too fluent.Rent the Runway Case Solution
It is this success that has enabled the management that has now started to think of expanding the company sooner than it had planned to do so. The investors of the company are also encouraging and seem to agree to this move as the immense market share and so much raised expectations of the costumers have been a positive signal to them.............................
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