The case focuses on household items subgroups within the overall retail sector. In the period examined the case (1970 to 2006), household goods in North America saw the emergence of two "big box" retailers - Linens "N Things (LNT) and bath Bed & Beyond (BBBY). LNT and BBBY were created during the four years of each other, and their corporate headquarters was only 16 miles apart.
Despite this remarkable similarity in the initial conditions, the results of performance sharply divided. At first glance, the two companies have been conducting similar business-level strategy of cost leadership, but the key strategic decisions led them to very different evolutionary path. Both companies are focused on providing high-quality products to consumers in a no-nonsense dishes, the cost of expensive environment, but the decision to create LNT centralized warehouses - it would seem, according to the strategy of cost leadership - finished bringing it into direct competition with Target and Walmart. Unlike BBBY allowed for greater decentralization of decision-making, thus increasing the store level decision-making and greater adjustment to the tastes of local consumers. As a result, BBBY was better able to differentiate itself from Walmart and Target. The case allows teachers to introduce the basic concepts of strategy, such as industry and environmental analysis, business-level strategy, core competencies and administrative heritage. At the material time (February 2006), the market capitalization of BBBY was about $ 10.7 billion, while the LNT was just acquired for $ 1.3 billion private equity firm. Business begins immediately after the acquisition of the view and the new CEO LNT, which is mandated to develop a crisis plan. "Hide
by Frank Schulz, Tina Doede, Elizabeth Nicknam-Retana Source: Richard Ivey School of Business Foundation 12 pages. Publication Date: August 10, 2010. Prod. #: 909M61-PDF-ENG
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