Competitive Strategies: Zucker And NRDC

Describe at least three competitive strategies used by HBC prior to its sale to Zucker and NRDC.
The three competitive strategies used by Hudson’s Bay Company prior to its sale to Zucker and NRDC were diversifying their products, differentiating themselves, and e-business strategies. To begin with, the Hudson’s Bay Company sold their non-strategic assets and natural resource holdings. The divestiture of the non-strategic assets allowed the business to and strengthen their share of the market through acquiring other retailers. Through this, HBC diversified through Designer Depot and Style Depot. Another strategy the HBC used was differentiating themselves from their competitors though reinventing their company’s image. This turnaround allowed …show more content…
To begin with, Jerry Zucker focused on improving the business’s operations and customer satisfaction. By doing so, the Bay was able create a unique bond between the business and the customers, this facilitating customer loyalty. By having loyal customers, the business retained more customers and have consumers that prefer not to buy from the Bay’s competitors. Moreover, under the NRDC’s leadership, the Bay revitalized itself though reducing the number of brands they distribute for, and focused on improving the quality of service provided. For example, the company re-launched “The Room” at one of its Toronto locations and offered a, “higher-end assortment of fashionable brands”. Additionally, the business redesigned and renovated their stores to give off a clean and modern look for the customers to enjoy and feel at ease. Through reinventing the brand’s image of a, “shabby store” into a modern and fashionable retailer, the business outperformed its competition in terms of their quality of products, services, and atmosphere. Lastly, the Hudson’s Bay Company became, “the official clothing outfitter for the Canadian Olympic Team [thus making them] clothing provider for the 2006, 2008, 2010, and 2012 games”. This allowed the company to build a special barrier to entry surrounding their Olympic merchandise that is protected by their exclusive contract with the Canadian Olympic team. Moreover, since the victories of the 2012 Vancouver Olympics the company has been associated with the nation’s Olympic success, thus building another competitive advantage around the business’s

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