Stitch Fix: Revolutionizing Personalization With Data The case solution
Internal Analysis
Online store, Stitch fix delivered packages of clothes to consumers according to their demands. Its main goal was to discover “perfect garments for individual tastes”, and stay up with the latest trends. It does research of their clients in terms of trends and then finding and purchasing attractive goods for their wardrobes.
Stitch Fix’s Business Strategy
The brand’s reputation in the market is actually the result of a hybrid strategy used by Stitch Fix in providing products to its client. The hybrid strategy revolves around focused differentiation provided to the customers through e-commerce segments at a very low cost as compared to other industry players.
Stitch Fix’s Corporate Strategy
The corporate strategy revolves around the evaluation of a company’s business segments and choosing the one, which generates highest value for the company. Similarly, Stitch Fix’s corporate strategy is based upon business diversification, as the company offers a wide range of the product scope, including more than 1000 brands.
Brand Positioning
The hybrid strategy has helped the company in maintaining a good positioning in the minds of the customers by providing personalized styling solutions to its customers. Such solution create an in-person styling experiences, as the specialized styling services are offered by the company with the help of personal stylists for each customer.
VRIO Analysis
VRIO analysis is used to understand the internal resources of a firm and its capabilities in order to find out whether these resources and capabilities lead to a sustained competitive advantage or not. The VRIO analysis for Stitch Fix has been explained as under
- Valuable: The Stitch Fix’s resources such as a vast distribution network, network of more than 1000 brand and personal styling experts, all have made possible to provide personal styling solutions to the customers, according to their preferences. So, the Stitch Fix’s internal resources are valuable.
- Rare: The resources are considered rare, if these are acquired by one or few companies. Stitch Fix’s resources are considered rare because a large distribution network is not owned by other industry players excluding few. Similarly, having contracts with more than 1000 brands and personal styling experts is costly too, which is not possible for small players to imitate so easily.
- Imitation: Stitch Fix’s resources are costly to imitate, as it’s very hard and expensive to have more than 1000 brands on the product portfolio and to arrange personal styling experts for each customer on individual basis.
- Organized: The Stitch Fix’s resources are fully organized, as they create value for the company by satisfying the customers’ wants. The whole organization system including the processes, organization structure and culture is organized and creating value for the company.
SWOT Analysis
Strength
- Stitch fix has strong distribution network and large number of outlets in every state so that products are available to customers on time.
- Stitch Fix has low cost structure which help company to dell the product at lower prices.
- Stitch Fix has large assets structure which generates better solvency for the company (Exhibit 1).
- Stitch Fix has strong relationship with the dealers which help company to promote product of company and training.
- The website of Stitch fix is very interactive which help in generating large number of sales.....................
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