PLAY IT SAFE AT HOME, OR TAKE A RISK ABROAD? Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Play It Safe At Home, Or Take A Risk Abroad? Case Solution

INTRODUCTION

Coe is a rent a center type business. It is an organization that dedicated to provide household goods on rent as well as provide the possibility to purchase the goods. The company has approximately 1000 store locations available in all over the United States. Moreover, the company started its operations in 1950's, with the hope of growing its business all over the world. Terry is the founder of the Coe Company. However, he starts its operations by investing $600 in 32 chairs to rent to auctions. Under his consideration, the company achieves a high growth opportunities. The company further expanded its operation to the most advantages alternatives. The company provides a short term contract payment mode as well as offered a monthly payment schedule to the customers who purchase goods from them. The company also provide a shorter contract period which is approximately 12 month which means that the company charge high prices for its products and charge lower cost for the eventual purchases. By following this strategy, the company becomes the number one lease to own chain as well as gain solid position in the United States Market. Moreover, the company focuses on differentiated market strategies which become company differentiated from its competitors.

In this case, the different decision of the senior's executives has been presented which highlights the decisions of the founder’s son, which they made in order to maintain the financial position of the company as well as for expanded the business into the other international markets. The main issue that the company faced is that how should the company expand its business operations to international markets. The company is also expected to expand its operations into the Mexico, Europe, and the United States. The company initially started its operation into the Canadian market from where they can achieve maximum profit margin which not only increases the market share of the company but also improves the competitive position in the market. After achieving the great success into the Canadian market, the company further tried to expand its stores into the Puerto Rico state where they have faced several challenges regarding the culture, governmental, administrative, and economics. Due to these challenges, the company failed to proceed further its operation into the Puerto Rico state. After analyzing the financial and corporate performance of the company, most of the experts suggested to the company to remain stick to the United States market and also expand its operations to the Walmart's demographics. The main strategy of the company is to train its managers regarding the needs of the customers and to guide them about the lease agreements. The company suggested to its managers to approve the lease agreements to only those peoples who are eligible to pay the payments for the services. On the other hand, the policy of the company is to provide the awareness to the unaware customers who have no understanding about the rent to own services. However, the economy is in recession due to this the company feels hesitate to commit big ticket items at once. On the other hand, the most important things that make the Coe's chain more attractive is its customers.

In this case, it is evaluated that the company would not afford to make payment, it is possible for the company to resume the contract agreements with no penalties whenever the financial position improved. In simple words, the primary objective of the company is to expand its business operations all over the world as well as securing the financial success of the company. Furthermore maintaining and gaining new stakeholders as well as helping customers and keeping their loyalties....................

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