l.l. bean case study analysis

L.L. Bean: A Century of Keeping Pace With Customers’ Needs

L.L.Bean has seen a lot of change in its 100-year history. From its beginnings as a catalog merchant, the company has grown into a global, multi-channel retailer with physical stores and e-commerce channels, in addition to its popular catalog business. But some things haven’t changed — in particular, the company’s loyal fan base and commitment to customer service.

Keeping those customers happy can be a distribution challenge. Last year, L.L.Bean shipped more than 14 million orders from its distribution center in Freeport, Maine. That’s an average of about 45,000 orders a day. Yet close to 60% of those orders are processed in the six weeks before Christmas. During peak, the company ships nearly 1 million packages a week.  

A few years back, L.L.Bean found that both its e-commerce and store fulfillment DCs were reaching capacity and would soon strain the company’s ability to grow. At the same time, it was being pushed to speed up processing in the DC so as to fulfill commitments for on-time delivery. Operating in a labor-constrained region of the country, the company wanted to reduce the amount of seasonal help required to fulfill orders during peak.

L.L.Bean turned to Fortna Inc. for help. After detailed analysis, the decision was made to embark on a long-term, multi-step approach to transform L.L.Bean’s distribution operations for greater efficiency and improved costs.

First, a replenishment sorter was installed to speed up the process and free up space. Next, Fortna worked with L.L.Bean to install a multi-level pick module that made more space available, and order picking more efficient and accurate. Then came the more challenging part of the project: shutting down L.L.Bean’s store DC, and merging those orders into the e-commerce DC in order to get synergies of inventory and personnel. But the e-commerce DC would require a complete overhaul, requiring:

• Converting to processing orders in waves, to take advantage of picking efficiencies,  
• Implementing a tote-handling system so orders would flow better,
• Retrofitting the large sorter to bring more efficiency and speed, and
• Upgrading the FortnaWES (Warehouse Execution System) to manage the new processes.

All this needed to happen without disrupting current operations, concurrent with the implementation of three major systems: enterprise resource planning (ERP), warehouse management system (WMS), and forecasting.   

It was a complex project, one of the biggest investments in company history. Fortna worked with L.L.Bean to develop a complete integrated design of the new system. The vendor identified changes that would be needed to the customer’s processes, including its Manhattan Associates WMS, FortnaWES, material-handling equipment, and training procedures. The two-year implementation was a comprehensive effort with lots of moving parts and complexity, including the need to ensure the solution stayed aligned with the original plan.

The distribution transformation was a huge success, according to L.L.Bean. Orders that used to take 10 hours to be processed are now finished in less than two. The volume of orders that can be processed in the DC increased by 50%. And overall productivity improved 39%.

In addition, jobs in the DC were simplified, making it easier to train all the temporary labor needed for peak, and helping to reduce the amount of seasonal labor required due to efficiencies from the project.

“There was little room for error in this project,” says Jack Samson, vice president of fulfillment, manufacturing and logistics with L.L.Bean. “We had to be sure we didn’t disrupt current operations.”

Adds Samson: “The success of this project was even greater than we imagined — a 39% increase in productivity. We are well-positioned to support the business in the future.”

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L.L.Bean: Modernizing the IT architecture at a 105-year-old retailer

About L.L.Bean

L.L.Bean, founded in 1912, is a privately held, family-owned apparel and outdoor equipment retailer. The company launched its ecommerce site in 1995 and operates stores and outlets across the United States and in Japan.

Tell us your challenge. We're here to help.

About Fearless Technology Group

Fearless Technology Group helps retailers modernize their technology architecture, solve critical business problems, and capitalize on business opportunities in an evolving landscape.

L.L.Bean modernized its IT infrastructure by moving capabilities from its on-premises systems to Google Cloud, improving customer satisfaction and IT efficiency across multiple sales channels.

Google cloud results.

• Improves customers' online experience with faster page loads and transaction histories
• Enables focus on delivering customer value, rather than managing infrastructure
• Supports rapid delivery of cross-channel services by cutting feature release cycles

Helps deliver an omnichannel retail experience

Freeport, Maine-based retailer L.L.Bean is as famous for its boots as its mail-order catalog, which dates back to 1912. The family-owned company has 51 stores, kiosks, and outlets around the United States. Its ecommerce engine is particularly robust, accounting for $1 billion of the company's $1.6 billion in annual revenues.

Like many retailers, L.L.Bean is embracing omnichannel sales by reaching out to customers across multiple channels—print, brick-and-mortar stores, website, app, and social media. Delivering a positive omnichannel retail experience has become essential for large retailers today, as 73% of consumers use multiple channels when shopping , according to Harvard Business Review.

"We didn't want customer experience to be limited to a specific channel. We wanted them to experience L.L.Bean as a dynamic, innovative brand, regardless of the channel."

Two years ago, L.L.Bean set out to improve its omnichannel experience. "We didn't want customer experience to be limited to a specific channel," says Randy Dyer, Enterprise Architect at L.L.Bean. "We wanted them to experience L.L.Bean as a dynamic, innovative brand, regardless of the channel."

In practical terms, L.L.Bean wanted to remove as much friction as possible from customer transactions, whether it's offering ecommerce pages that load quickly on mobile or desktop devices, or quickly providing long-term customers with their extensive purchase histories on demand.

But in its drive toward agile, cutting-edge omnichannel experiences, L.L.Bean faced a considerable hurdle. Different, loosely connected IT systems—some of which had been in use for 20 years—supported each of the retailer's customer channels. While the systems shared some similar capabilities, they relied upon separate applications that performed in their own way.

Much of the retailer's IT system consisted of on-premises mainframes and distributed servers, an environment in which upgrading clusters and nodes was overly cumbersome. "The company wanted to leverage the cloud for new capabilities, faster time to market, better online performance, easier upgrades, and the ability to give customers more capabilities," says Peter Brumblay, Cloud Architect for Fearless Technology Group , a retail technology consultancy hired to help L.L.Bean modernize its IT architecture.

Achieving those goals with the retailer's on-premises IT system would have been too cost-prohibitive, Randy adds. So, L.L.Bean turned to Google Cloud to help modernize its IT system. Google Cloud has helped the company integrate data from multiple sources and systems, handle peak website loads more efficiently and cost effectively, innovate and deliver new online features to customers faster, and improve its website and mobile experiences.

"Unlike the enterprise version of the other container solution L.L.Bean tested, Google Cloud offers a pay-as-you-go licensing model that doesn't require a large capital outlay."

Streamlining upgrades and software

In partnership with Fearless Technology Group, L.L.Bean's IT team experimented with containers, which provide a dedicated virtualized environment for applications to run in. After researching available options, the team decided that Kubernetes , Google's cloud-native, open source system for containerized applications, would best meet their needs.

"We really liked the capabilities of Kubernetes and the direction it was going," says Randy. "We looked at where we could get Kubernetes in the cloud, and we were very happy with what we saw with Google Cloud." Google Cloud includes Google Kubernetes Engine , an open source-based managed environment for deploying containerized applications. L.L.Bean already had a successful relationship with Google, via Google AdSense and its paid search products.

"Google Kubernetes Engine has significantly streamlined the process of upgrading nodes and masters. By comparison, upgrading even minor releases of another container solution that L.L.Bean tested resulted in the need to rebuild that solution's clusters four times," says Randy. Additionally, L.L.Bean would have had to apply more people time to manage the clusters that Google Kubernetes Engine handles in the background.

The seamless integration of Google Kubernetes Engine with Google Persistent Disk , the block storage for Google Cloud, was another benefit, as it was key in getting new software development up and running quickly.

In addition, the cost of the solution better mapped to the company's short- and long-term goals. "Unlike the enterprise version of the other container solution L.L.Bean tested, Google Cloud offers a pay-as-you-go licensing model that doesn't require a large capital outlay," adds Chris Cummings, CEO and Founder for Fearless Technology Group.

"We won't have to pay for peak capacity to have it available during peak shopping times. We just scale capacity up or down as needed."

Scaling as needed

L.L.Bean plans to use Cloud Spanner , a fully managed relational database service in Google Cloud, to solve some of its database scaling challenges.

The retailer's Product Availability service must take constantly streaming updates on inventory positions that flow from multiple backend data systems. At the same time, the service must handle continuous requests for available inventory as customers place orders on the front end. "Because Cloud Spanner is a horizontally scalable and ACID-compliant database system, it can handle the heavy volumes of concurrent writes and reads and is a great fit for this application," says Randy.

The ability to quickly scale capacity to meet changing usage patterns, such as during holiday shopping, as well as to rapidly perform load tests to test capacity, are "night and day" with Google Cloud compared to L.L.Bean's legacy on-premises IT system. Says Randy: "We won't have to pay for peak capacity all the time like we used to, to have it available during peak shopping times. We just scale capacity up or down as needed."

Speeding up online experiences

In partnership with Fearless Technology Group, L.L.Bean has six development teams migrating applications to the cloud. Two teams are moving all llbean.com pages over time into a new web architecture dubbed Front-End Architecture (FEA), which is based on React. This new customer-facing architecture runs entirely on Google Cloud. All applications supporting the FEA are to be deployed as containers with Google Kubernetes Engine, with the goal of completing the vast majority of the project during fiscal year 2018.

The teams have already migrated the llbean.com homepage, category pages, and specialty product landing pages to the FEA. The result has been significantly faster webpage renderings. In turn, that's translated into lower bounce rates for those pages, and customers are less likely to get frustrated by slow load times and click off the site after viewing only one page.

"When you can get customers to click through to other pages, you've got a much better level of engagement, and ultimately, that feeds into customer conversion opportunities and direct revenues from customer acquisitions," Randy explains.

Showing long-term customers their detailed, lengthy purchase histories is another way that Google Cloud is helping L.L.Bean be more responsive to its customers online. "Because of the complexity of our legacy IT system, that data comes from multiple sources and it gets integrated in real time," says Randy. "Plus, we decided to increase the amount of history we kept for our customers."

As that data volume started growing, and as more customers accrued longer histories, those queries became expensive to deliver and unsatisfying for users to experience. For example, lengthy customer history queries would sometimes timeout on the L.L.Bean website. Today, the company is automatically pre-aggregating purchase history data from multiple sources and storing it in Google Cloud eliminating timeouts and providing much more consistent response times to customers.

"With Google Cloud, we can run experiments, learn from the results, and deliver new capabilities into production much faster."

Building new capabilities

With Google Cloud, teams have much more automation at their disposal, such as automated build processes and testing, resulting in greater development efficiencies. "With Google Cloud, we can run experiments, learn from the results, and deliver new capabilities into production much faster," says Randy. The company's IT teams are able to move to an agile software development approach, enabling them to react quickly, deliver more capabilities in a shorter time frame, and continuously innovate.

For example, the Frontend Architecture team was looking for a lightweight tool to test network load balancing. The team chose Locust , spun it up in a container, spun up a swarm of workers (which are a type of node), and were performing automated load tests within two weeks. With Locust successfully containerized, the Product Availability team started using it to test their inventory services—and added their own functionality to it as well.

The two teams were able to build capabilities they didn't have before, quickly and efficiently, thanks to the flexible architecture in Google Cloud. In the past, adding a new functionality often required developing within a rigid, eight-week release cycle. But the development practices enabled through Google Cloud allow teams to deploy new features whenever they're ready to go.

There are plans to employ the FEA for internal user-facing systems, too. "We plan to share the technology base as much as possible, to leverage what we've done and bring consistency to things like the website and call center operations," Randy explains.

Building a customer driven IT system

Storing customer and other data in the cloud can keep some IT people awake at night with worry. But Randy says L.L.Bean's teams appreciate Google's end-to-end security model which was built into Google Cloud from the ground up. L.L.Bean also layered its security best practices and tools onto the platform to help ensure that data is safer, highly secure, and audited.

Over time, L.L.Bean will transition completely to a microservices architecture deployment. The goal is to move application services away from legacy on-premises systems, extract the functionality out of all its separate customer-facing systems, and reposition them as shared application services running as container deployments on Google Cloud.

"The shift to Google Cloud is helping us stay competitive in the rapidly changing retail landscape. With the help of Fearless Technology Group, we're doing a lot of cool stuff these days with the cloud, agile practices, and containerized applications."

L.L.Bean is experimenting with other Google Cloud services, including BigQuery and Dataflow as the foundation for a marketing data analytics platform, and Pub/Sub for event handling. The long-term strategy is to continue building a multi-cloud IT architecture, giving the retailer the flexibility to add and integrate components from other systems as needed. Google Cloud and Google Kubernetes Engine will serve as the foundation, especially (but not exclusively) for its customer-facing systems.

It was clear that L.L.Bean's legacy on-premises system was only going to constrain its ability to be innovative and responsive going forward. At the same time, there's been an overall company-wide effort to modernize.

"The shift to Google Cloud is helping us stay competitive in the rapidly changing retail landscape," says Randy. "With the help of Fearless Technology Group, we're doing a lot of cool stuff these days with the cloud, agile practices, and containerized applications that are improving our speed to market and helping us deliver a better customer experience—regardless of sales channel."

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L.L. Bean, Inc.

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• | Pages: 13

BEN GROSSMAN

CASE STUDY:

L.l.bean be an outsider at work.

L.L.Bean recently doubled down on a new rallying cry to the public: Be an Outsider. As the campaign took off, L.L.Bean’s Brand Engagement team, a progressive combination between social media, content, public relations, experiential marketing and dynamic retail, needed to begin to deliver proof on its promise to help people experience the shared joy of the outdoors.

And to ensure that its connection with consumers was authentic, L.L.Bean wanted to focus on earning its way into the hearts and minds of its target audience.

Here’s how we made it happen.

The Challenge

After more than 100 years in business, L.L.Bean is widely known as an apparel brand, stuck in consumers’ minds as Fall and Winter products on the pages of catalogues. 

In order to be taken seriously as the modern outdoor retailer it is, the brand had to be known as a champion of time spent experiencing the shared joy of the outdoors. L.L.Bean needed a way to gain cultural relevance during a time when it hadn’t even been part of the conversation.

The Insight

As much as L.L.Bean’s consumers love the outdoors, they don’t get nearly enough of it. One big reason? The gross majority of the brand’s “outsider” target audience have traditional desk jobs. In fact, 95% of their time is spent indoors, and nearly half of that is spent at the office. 

Yet research shows that when we spend more time outside, we’re better workers: 50% more productive, 300% more creative, and 92% are happier. In other words, work doesn’t have to be a place we go – it’s a thing we do. And we’re better at doing it outside. But if we were going to change workplace behavior, we knew we’d need to do something to disrupt the biggest routine our audience has.

“Be an Outsider at Work” became a movement to help people get more of the outside into their work days.

We started by asking a few provocative questions: What if open floor plans were truly open? Is blue sky thinking better done under a clear blue sky? Would more bright ideas see the light of day if we did, too?

Then, we introduced the world’s first ever outdoor coworking space in partnership with innovative workspace brand Industrious and published research that proved the benefits of getting outside at work. In doing so, we didn’t just open a new type of office space, we opened people’s minds to the importance of the outdoors.

The Experience

Every part of the campaign gave “Out of Office” a whole new meaning.

Our outdoor offices opened in green urban spaces across L.L.Bean’s priority markets, from New York City, NY to Madison, WI; from Boston, MA to Philadelphia, PA. We invited the press, influencers and everyday workers to book an outdoor desk, team conference room or stationary bicycling desk to realize the benefits of working al fresco. As part of the experience, we leveraged L.L.Bean’s Outdoor Discovery Program to conduct tree-side team-building for some of the worlds’ biggest companies.

Concurrently, we released the results of a proprietary research study in collaboration with workplace strategist Leigh Stringer. An in-depth white paper, shareable infographic and snackable social content brought the research and actionable tips to life, demonstrating both the benefits and ease of spending just a few more minutes outside each day at work.

Popular digital publisher NowThis released videos that were shared digitally and talked about in office environments everywhere. A satellite media tour with local news channels across the country inspired workers with fresh perspective before they left for their morning commutes.

Suddenly, L.L.Bean was being heralded on the front page of USA Today and in the Workplace Wellness pages of Forbes. The brand had quickly changed both the way people viewed work  and thought about the brand. And workers across the country were all in.

Thousands of employees from some of the world’s most admired companies – Google, IBM, McKinsey, Superfly, Blue Apron, Pinterest and many more – booked co-working spaces with L.L.Bean and shared our digital content with their networks.  

Along the way, we captured plenty of the attention and began to change consumer mindsets:

406 million earned media impressions across 478 placements

4.6M digital engagements 

73% lift in branded search

91% participant likelihood to work outside in the future

4.4x the industry avg. engagement rate

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L.L. Bean, Inc.: Inventory Management Case Study

L.L. Bean, Inc. has long been recognized for its iconic outdoor gear and apparel. Behind the scenes, lies a complex and finely tuned inventory management system that is worth exploring.

As the retail landscape continues to evolve, the case study of L.L. Bean's inventory management provides valuable insights into the strategies and technologies that have enabled the company to navigate seasonal fluctuations, align supply with demand, and maintain a customer-centric approach.

However, the true intrigue lies in the innovative solutions and sustainable practices that have set L.L. Bean apart in the realm of inventory management.

Background of L.L. Bean, Inc

Founded in 1912, L.L. Bean, Inc. has established itself as a renowned outdoor retailer with a rich history and a commitment to quality and customer satisfaction. The company was founded by Leon Leonwood Bean, who created the first-ever waterproof boots to address the needs of hunters and fishermen. This innovative product, the Maine Hunting Shoe, laid the foundation for the company's commitment to developing high-quality, functional outdoor gear.

Over the years, L.L. Bean, Inc. has expanded its product line to include a wide range of outdoor apparel, footwear, and equipment, catering to outdoor enthusiasts of all kinds. The company's dedication to product development has been a key factor in its success, with a focus on incorporating customer feedback and embracing technological advancements to enhance its offerings. From the introduction of the iconic Bean Boot to the development of advanced moisture-wicking fabrics, L.L. Bean, Inc. continues to prioritize innovation and quality in its product development efforts.

The company's rich history and legacy of providing reliable outdoor gear have solidified its position as a trusted brand among outdoor enthusiasts, reflecting its enduring commitment to meeting the evolving needs of its customers.

Inventory Forecasting Methods

Inventory forecasting methods play a pivotal role in ensuring optimal inventory levels and meeting customer demand.

Demand trend analysis allows for a detailed understanding of consumer preferences and purchasing patterns, enabling more accurate inventory projections.

Additionally, accounting for seasonal sales fluctuations is crucial for effectively managing inventory levels and aligning them with expected demand.

Demand Trend Analysis

Analyzing demand trends is a critical component of inventory forecasting methods, providing valuable insights for effective inventory management. To optimize supply chain operations and enhance demand forecasting accuracy, several key strategies should be considered:

• Historical Sales Data : Utilize historical sales data to identify seasonal and cyclical demand patterns, enabling proactive inventory adjustments to meet anticipated demand fluctuations.
• Market Research and Consumer Behavior Analysis : Conduct in-depth market research and analyze consumer behavior to identify evolving trends, preferences, and purchasing patterns, thus refining demand forecasting models.
• Collaboration with Suppliers and Partners : Establish collaborative partnerships with suppliers and key stakeholders to gather market intelligence, anticipate demand shifts, and adapt inventory levels accordingly, ensuring a responsive and agile supply chain.

Seasonal Sales Fluctuations

Seasonal sales fluctuations pose a significant challenge for inventory forecasting methods, requiring a nuanced approach to anticipate and accommodate the varying demand patterns throughout the year. Sales forecasting plays a crucial role in understanding these fluctuations, as it allows for the identification of peak seasons and low-demand periods.

By analyzing historical sales data and market trends, companies can make informed predictions about future demand. Inventory optimization is essential in this context, as it ensures that the right amount of stock is available at the right time, preventing both stockouts and overstock situations.

Utilizing advanced analytical tools and machine learning algorithms can aid in accurately predicting seasonal sales patterns, thus enabling companies to optimize their inventory levels and meet customer demand effectively.

Seasonal Inventory Challenges

Seasonal inventory challenges pose significant complexities for retailers, particularly in managing the fluctuations in demand across different seasons. Maintaining an optimal inventory turnover rate becomes a critical factor in addressing the seasonal shifts in customer preferences and buying patterns.

Additionally, forecasting accuracy becomes paramount in mitigating the risks associated with overstocking or understocking seasonal merchandise.

Seasonal Demand Fluctuations

L.L. Bean, Inc faces significant inventory management challenges due to the fluctuating demand for seasonal products, requiring a meticulous and strategic approach to maintain optimal inventory levels. This is particularly evident in handling seasonal demand fluctuations, where the supply chain and inventory optimization play crucial roles.

The company must navigate these challenges by:

• Forecasting Demand : Leveraging historical sales data and market trends to accurately predict seasonal demand.
• Agile Production : Implementing flexible production processes to swiftly adjust output based on seasonal demand fluctuations.
• Efficient Distribution : Optimizing distribution networks to ensure timely availability of seasonal products in high-demand regions.

Inventory Turnover Rate

Navigating the inventory turnover rate during seasonal fluctuations presents L.L. Bean, Inc with a complex challenge that demands a strategic and analytical approach to ensure efficient management of seasonal inventory.

Inventory optimization is crucial to balance stock levels with varying customer demand throughout the year. L.L. Bean must strategize to maintain adequate inventory levels during peak seasons to meet customer demand, while avoiding excess stock during off-peak periods. This requires meticulous inventory control to minimize carrying costs and prevent stockouts.

Implementing robust forecasting models can help anticipate seasonal demand patterns, enabling proactive inventory management. Furthermore, analyzing historical data and market trends can aid in making informed decisions regarding stock levels.

Forecasting Accuracy Challenges

Efficient inventory management in the face of seasonal fluctuations presents L.L. Bean, Inc with the formidable task of addressing forecasting accuracy challenges, thereby necessitating a meticulous and strategic approach to ensure optimal seasonal inventory control.

Challenges pertaining to forecasting accuracy in the context of seasonal inventory can significantly impact the company's operations. The following are key factors contributing to these challenges:

• Data Driven Forecasting : Implementing advanced data analytics to incorporate historical sales data, market trends, and customer insights to enhance the accuracy of demand forecasts.
• Inventory Optimization : Employing inventory optimization techniques to balance stock levels with anticipated demand, thereby reducing the risk of stockouts or excess inventory.
• Demand Sensing Technology : Leveraging innovative demand sensing technologies to capture real-time demand signals and adjust inventory levels accordingly, enhancing responsiveness to fluctuations in customer demand.

Addressing these challenges requires a comprehensive and adaptive approach to forecasting and inventory management, enabling L.L. Bean, Inc to effectively navigate seasonal inventory fluctuations.

Supply Chain Optimization

Optimizing the supply chain is crucial for achieving operational efficiency and cost-effectiveness, as well as ensuring timely delivery of products to customers. One of the key aspects of supply chain optimization is inventory management. L.L. Bean, Inc. has leveraged advanced inventory optimization techniques to streamline its supply chain and enhance overall performance. The table below outlines some of the crucial strategies and technologies used by L.L. Bean to achieve supply chain efficiency and inventory optimization.

Demand-Supply Alignment

The alignment of demand and supply is a critical factor in ensuring operational efficiency and customer satisfaction within the supply chain of any organization. Demand forecasting and supply chain optimization play pivotal roles in achieving this alignment.

• Demand Forecasting :

Accurate demand forecasting is essential for aligning supply with customer needs. L.L. Bean, Inc. employs advanced statistical methods and data analysis to forecast demand, taking into account factors such as seasonality, trends, and customer preferences. This enables the company to anticipate customer demand and align its supply chain accordingly, thus reducing stockouts and excess inventory.

• Supply Chain Optimization :

L.L. Bean, Inc. has strategically optimized its supply chain to align with demand patterns. This involves efficient inventory management, streamlined logistics, and agile production processes. By leveraging technology and data analytics, the company ensures that the right products are available at the right time and place, thereby aligning supply with demand and enhancing overall operational effectiveness.

• Collaborative Planning :

The company fosters collaboration between various departments and suppliers to achieve demand-supply alignment. Cross-functional teams work together to synchronize production, procurement, and distribution processes, ensuring that supply meets forecasted demand accurately. This collaborative approach enhances the company's ability to respond swiftly to changes in customer demand, ultimately leading to improved customer satisfaction and operational efficiency.

Technology in Inventory Management

Utilizing cutting-edge technology is essential in modern inventory management systems to enhance accuracy, efficiency, and real-time visibility throughout the supply chain.

Technology integration plays a crucial role in streamlining inventory management processes. Advanced software solutions, such as inventory optimization tools, enable companies to forecast demand more accurately, leading to better inventory control and reduced carrying costs. These tools analyze historical data, market trends, and other relevant factors to calculate the optimal stock levels for each product.

Furthermore, automated inventory tracking systems, including RFID and barcode scanners, facilitate real-time updates on inventory levels, minimizing the risk of stockouts or overstock situations.

In addition, the use of advanced analytics and machine learning algorithms allows businesses to gain actionable insights from large volumes of inventory data. These insights can help in identifying patterns, demand fluctuations, and supply chain inefficiencies, thereby enabling proactive decision-making.

Moreover, cloud-based inventory management systems provide companies with the flexibility to access crucial inventory information from anywhere, at any time, enhancing collaboration and decision-making across different departments and locations.

Inventory Turnover Ratios

Integrating technology into inventory management not only facilitates real-time visibility and operational efficiency but also enables businesses to evaluate their performance through metrics like Inventory Turnover Ratios.

Inventory Turnover Ratios are a crucial tool for assessing how effectively a company is managing its inventory and converting it into sales. Here are three key aspects of Inventory Turnover Ratios:

• Inventory Optimization :

By analyzing Inventory Turnover Ratios, companies can gain insights into the optimal level of inventory needed to meet customer demand while minimizing excess stock. This helps in streamlining operations and reducing holding costs.

• Cost Control :

Inventory Turnover Ratios aid in identifying slow-moving or obsolete inventory, allowing businesses to take proactive measures to avoid overstocking and potential markdowns. This, in turn, contributes to better cost control and improved profitability.

• Operational Efficiency :

A high Inventory Turnover Ratio indicates that a company is efficiently managing its stock, which can lead to improved cash flow and reduced carrying costs. This efficiency also reflects positively on customer satisfaction as it ensures the availability of in-demand products.

Customer-Centric Inventory Strategies

With a focus on enhancing customer satisfaction and optimizing supply chain operations, the implementation of customer-centric inventory strategies is pivotal for driving competitive advantage and sustainable growth in today's dynamic marketplace.

Customer-centric inventory strategies revolve around understanding and fulfilling customer demand while effectively managing inventory levels. By leveraging data analytics and customer insights, companies can anticipate demand patterns, reduce stockouts, and improve fulfillment rates, thereby enhancing customer satisfaction. This approach also involves segmenting customers based on their purchasing behavior and preferences to tailor inventory levels and product assortments to specific customer segments, further enhancing their experience.

Furthermore, implementing inventory optimization techniques such as demand forecasting, safety stock management, and efficient replenishment processes allows companies to maintain optimal inventory levels. This not only reduces carrying costs and minimizes stockouts but also enables swift order fulfillment, thereby enhancing customer satisfaction and loyalty.

Additionally, aligning inventory strategies with omni-channel retailing and e-commerce requirements is crucial in today's market landscape, where seamless and efficient inventory management across multiple channels is imperative for meeting customer demands.

Sustainability in Inventory Practices

Building upon the customer-centric inventory strategies discussed previously, the integration of sustainability in inventory practices is becoming increasingly vital for businesses aiming to align their operations with environmental and social responsibility objectives.

As companies strive to reduce their environmental impact and meet the growing consumer demand for sustainable products, they are re-evaluating their inventory practices to incorporate sustainability measures.

Here are three key aspects of sustainability practices in inventory management:

• Optimized Supply Chain : Implementing sustainable inventory practices involves optimizing the supply chain to reduce carbon footprint and waste. This includes sourcing materials from eco-friendly suppliers, minimizing transportation-related emissions, and reducing packaging waste.
• Waste Reduction : Sustainable inventory practices focus on minimizing waste generation throughout the product lifecycle. This involves implementing efficient inventory management systems to prevent overstocking, reducing product obsolescence, and finding innovative ways to repurpose or recycle excess inventory.
• Ethical Sourcing : Embracing sustainability in inventory practices also entails ensuring ethical sourcing of raw materials. Companies are increasingly prioritizing suppliers who adhere to fair labor practices, ethical sourcing of materials, and environmentally responsible production processes.

In conclusion, L.L. Bean, Inc. has effectively utilized various inventory management strategies to address seasonal challenges, optimize supply chain operations, and align demand with supply.

The implementation of customer-centric inventory strategies and the integration of technology have also contributed to the company's success.

By prioritizing sustainability in their inventory practices, L.L. Bean has demonstrated a commitment to responsible business operations.

Overall, the company's strategic approach to inventory management has positioned them for continued success in the market.

As the saying goes, 'A well-managed inventory is the key to unlocking business success.'

'A well-managed inventory is the key to unlocking business success by ensuring efficient operations, meeting customer demand, minimizing waste, and maximizing profitability.'

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L.L. Bean Case Analysis

How successful has L. L. Bean been? L.

L. Bean has been emerging as the market leader in mail-order companies that are specializing in outdoor apparel and equipments. As recorded by the company’s Customer Awareness Survey, it is the most well-known mail-order company setting the pace in the market with the reputation of having efficient delivery of good quality good s to the customers. From 1976 to 1980, the number of new L. L.

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Bean customers had been increased to 650,000; by 1980 sales had risen to over $120 million. 2. What are the reasons for L. L. Bean’s success? a.

Clear company positioning and strict compliance to that positioning: L. L. Bean provides high quality outdoor wears at fair price with great customer services. b. It treats its customer with genial care and consideration like treating them as friends and neighbours especially with its free shipping and handling fee for customers‘ convinience; c.

Staffed with professional personnel d. Great effort in marketing management and the notion of using ‘word-of-mouth’ as one of the marketing idea is really effective 3. What is happening to the business, both positively and negatively?

Positively: the sales have been increasing after years of operation and innovation; increasing amount of inquiries from across the country and international distributors to invite L. L. Bean to conduct their business there. Negatively: The transitional period when the company suffered from shortage of young talents, out-dated technology and slow growth; the successors–the next generation of the Beans will not be able to step into the business in the near future which can result the imbalance of management; the growth of new customers has not been significantly high 4.

How would you respond to the questions Mr.

Gorman poses at the end of the case? To avoid falling into being a money-crunching company, L. L. Bean should always keep steady in the course of being a loyal and honest company to its customers that will always provide high quality products at right price to satisfy their needs–just like what L. L. Bean has been doing: treating customers like a personal friend.

An enterprise is in the market for profits but if it will not lose sight on what keeps its existence in the market, it will definitely ‘keep the magic alive’ for long. 5. Which, if any, new avenues for growth should L.

L. Bean pursue? International development: L. L.

Bean should keep the same operational ideology across the US but negotiate a different arrangement in other countries since the demographics and the buying preferences are different. In terms of whether to sell primarily through retail stores or through mail-orders, because mail-order has been L. L. Bean‘s most competitive strength all along and it can save many overhead costs, I personally suggest in the first stage of implementing business in other countries, mail-orders should be the main means to approach customers.

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L.l. bean, inc.: corporate strategy case study analysis & solution, harvard business case studies solutions - assignment help.

L.L. Bean, Inc.: Corporate Strategy is a Harvard Business (HBR) Case Study on Sales & Marketing , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Sales & Marketing Case Study | Authors :: Hirotaka Takeuchi, Penny Pittman Merliss

Case study description.

L.L. Bean, Inc., a Maine-based manufacturer and mail-order retailer of sporting goods and apparel, has grown from $3 million in sales (1967) to over $120 million (1980). Current projections predict an annual compounded growth of 25% through 1985. Management must decide how to achieve this growth: through mail order, by opening more retail stores, by increasing manufacturing operations, or by going international. In managing growth, the company president is determined to maintain the highly personal service, excellent product quality, and friendly, informal working environment which he considers key to the company's popularity with customers and employees.

Strategic planning, Supply chain

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the sales & marketing.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Sales & Marketing. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the L.L. Bean, Inc.: Corporate Strategy HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - L.L. Bean, Inc.: Corporate Strategy Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of L.L. Bean, Inc.: Corporate Strategy

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the L.L. Bean, Inc.: Corporate Strategy . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the L.L. Bean, Inc.: Corporate Strategy
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of L.L. Bean, Inc.: Corporate Strategy HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis L.L. Bean, Inc.: Corporate Strategy

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of L.L. Bean, Inc.: Corporate Strategy

Another way of understanding the external environment of the firm in L.L. Bean, Inc.: Corporate Strategy is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into L.L. Bean, Inc.: Corporate Strategy Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome L.L. Bean, Inc.: Corporate Strategy case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine L.L. Bean, Inc.: Corporate Strategy case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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• Harvard Case Studies

Harvard Business Case Studies Solutions – Assignment Help

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

porter’s five forces model

STEP 2: Reading The Ll Bean Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Ll Bean:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Ll Bean and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Ll Bean HBR Case Solution:

• Pest analysis

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Ll Bean is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Ll Bean.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Ll Bean Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Ll Bean.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Ll Bean Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Ll Bean:

Vrio analysis for Ll Bean case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Ll Bean company’s activities and resources values. RARE: the resources of the Ll Bean company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Ll Bean)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Ll Bean Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Ll Bean Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Ll Bean Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Ll Bean Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.