Definition of Success and Critical Issues

The definition of success for Harry Laurell, the owner of the D-Bamboo Home and Garden shop is to build the customer base of the shop, increase the number of customers and increase the total revenues for the shop. The revenues of the shop have started to stabilize and decline in the year 2009 and Harry has analyzed that the sales had declined by 40% as compared to the previous year which is a huge decline in the sales revenues. There are also a number of critical issues that are faced by the shop owner due to which the sales of the shop have started to decline. These issues are discussed in the next section of situation analysis.

Briefly if we outline the most critical issues that are being faced by the D-Bamboo shop of Harry then these relate to the adverse economic climate of Trinidad, the emergence of new competitors in a nearby location with the same competitive prices, the rumors or other plant shops to be opened soon. There were also certain disadvantages attached to the current location of the shop. All of these critical issues had caused the sales to decline in 2009 by 40%. Therefore, the definition of success for Harry is to boost the sales of the company, relocate to the most profitable location, decrease the operating expenses and increase the customer base and their loyalty.

D-Bamboo Home and Garden Shop Harvard Case Solution & Analysis

Situation Analysis

The economic environment of Trinidad has not been good as a result of the recent financial crisis. Moreover, the entry of a new competitor in a nearby location has impacted on the sales of D-Bamboo shop. The nearby competitor has been offering the same competitive prices as offered by Harry. Furthermore, there were also rumors that another shop with the same product lines was expected to be opened one kilometer away in the nearby shopping mall by the end of December 2009. Harry also feared that the sales for the upcoming Christmas season might not match the pattern that has been witnessed in the past several years.

Looking at the above factors, the primary concern of Harry is to ensure the survival of the D-Bamboo Home and Garden Shop in the long term. If we analyze the situation faced by the D-Bamboo Home and Garden Shop and Harry then we can see that there is a high threat for the new entrants and one of the competitors has already entered the market in a nearby location. If we talk about the power of the suppliers then most of the customers have began to turn into suppliers and as the D-Bamboo Home and Garden Shop uses several local suppliers, then he can fix competitive rates with them.

The network of suppliers is large and thus their bargaining power is low. The bargaining power of customers is medium to high as they are willing to travel long distances to buy their desired plants. The substitutes for the plant shop items are self grown and a number of competitors are rumored to provide similar plant items like D-Bamboo Home and Garden Shop...............

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