Channels of Distribution
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What is Men's Wearhouse's point of differentiation? How would you characterize their corporate strategy?
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This solution discusses ditribution for Men's Wearhouse
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1. The point of differentiation of Men's Warehouse is superior customer service. The corporate strategy is a combination of interdepartmental synergy, employee energy and corporate agility. The corporate strategy can be characterized as suitable, feasible and acceptable.
2. There are several potential sources of conflict. The sources of conflict are that Men's Warehouse deals direct with 75% manufactures and deals with distributors for others. In addition, the VMS agreement can be a source of conflict when stock outs happen or supplies are received before they are due. Finally, with J2, Men's Warehouse wants an exclusive distribution agreement with J2 this may not be feasible.
3. Men's Warehouse has high brand equity. This is substantiated by the special type of off-price moderate quality category of men's clothing. Also the utility scores of the customers reveal the high brand equity. For instance, in the wardrobe segment the selection has utility scores of 0.21 and quality score of 0.17, similarly I the item specific segment the scores for selection are 0.32 and quality are 0.22. These scores mean that a very large proportion of customers shop at Men's Warehouse for its high quality and selection;
4. Increasing stock turnover rate helps the company trade far more with its working capital. In addition, it also means that the company spends less in carrying its stock. Most importantly, it also uses less space in storing stock. So, having a higher turnover rate helps the company in three ways.
5. The 6065.82 foot store in large urban areas is most ...
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