Let's Take This Private: Linens ‘n Things Versus Bed Bath & Beyond (2010)

Assignment Template:

Let’s Take this Private: Linens ‘N Things Versus Bed Bath & Beyond (2010)

I. Complete a detailed SWOT analysis for LNT and attach as an Appendix. After completing the SWOT analysis, list the “top two” strengths, weaknesses, opportunities and threats in the boxes below:

Positive Negative

Internal Strengths

- Online shopping offered. The Internet provided customers with easy access to pricing information.

- Moved to a superstore format. Weaknesses

- LNT had a limited marketing budget

- Lack of innovation in management and investment in human resources.

External Opportunities

- Bushs Tax Relief Act Extern

- WTO import quotas were lifted. Threats

- Unpredictable customer demand in the fashion industry.

- Low barriers to entry and thus provides for an extremely competitive environment.

II. Concluding Statement: (Max 300 words). Your statement should address three key points:

1. Explain how these strengths, weaknesses, opportunities and threats impact LNT’s strategy

2. What new LNT strategies do you foresee based on your analysis?

3. What are your recommendations for LNT based on your analysis?

Linen’N Thing is the second leading business in the housewares industry, which has low barriers to entry and thus provides for an extremely competitive environment. After several years of LNT failing to find that boost they needed to overcome BBBY, a new CEO was brought in, Bob DiNicola, a turnaround specialist. To compete with this LNT decided to market themselves towards a different demographic and sold high-quality, brand name goods. They had more unique offers such as electronic bridal registries and online shopping and good customer service, which helped them to create more loyal customers. Also the fact stated in the case that echo boomers are approaching their late twenties, average age when Americans get married. This could be a strong benefit to Linens ‘N Things because these couples will want to spend more money for better quality and long lasting products. LNTs strategically placed warehouses allowed for decreased dwell times. However, Linens n’ Things decision to build centralized warehouses that seemed consistent