We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Replacements, Ltd.: Replacing The Irreplaceable

essay
The whole doc is available only for registered users OPEN DOC

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Bob Page worked as an auditor and hated it. As a hobby, he started visiting flea markets and collecting china. Friends asked him to look for replacement pieces for them. By 1980, Bob had revenues of $53,000 from his hobby and decided to quit his job to start Replacements, Ltd. By 1997, Bob’s hobby had grown into a business with almost $60 million in revenue and 500 employees. Bob was proud that he had been successful without a business plan, a marketing strategy, budgets, and many of the things that business schools teach a company must have to be successful.

Replacement Ltd. has a strong network of suppliers that supply the company each week with pieces of china, crystal and silver that they locate from estate sales, auctions, flea markets and antique stores. Replacements provides its suppliers the current price the company is willing to pay for a particular piece.

The problem faced at Replacements was its lack of a strategic business strategy that incorporates a strong inventory system is limiting is ability to sustain its current growth rate as well as threatening its position as the dominant leader in providing a source of china, crystal, silver and other collectable items to the public.

This company has experienced phenomenal growth, but the management style and drive to implement good customer service have resulted in rapid employee burnout and high turnover despite above average pay and incentives. Inventory management poses another big problem.

Strategic mission and vision

Replacements, Ltd. will be the dominant leader in providing replacement pieces in china, crystal and silver. It will do so by providing quality items with superior customer service from knowledgeable employees.

SWOT Analysis of Replacements

Strengths:

– Dominant leader in a unique business with $60 million in sales in 1997

– Large inventory of over 6 million pieces and 125,000 patterns

– They had a better buying system unlike its competitors where they bought the pieces based on demand and how much inventory they had.

– They kept records of patterns that each customer owns in their list

– State of the art telephone service centre

– Had an incomparable customer base of 2 ½ million

– They had rich knowledge about pieces and they documented things

– Employees were given above average pay and incentives

– Offer a free pattern identification, flatware restoration and cleaning service

Weaknesses:

– Lack of formal, specific business strategy

– Strong corporate culture with high expectation of employees

– Lack of flexible inventory system that allows maximum utilization

Opportunities:

– Expand into international business operations beyond current mailing practices

– Create exclusive partnerships with other china, crystal and silver
manufacturers

– Develop exclusive rights to carry limited edition items that are aimed at the target market

– Outsourcing certain functional areas of the business

Threats:

– Entrance of similar businesses especially from foreign countries

– Consumer trends change and collections of china, crystal etc become less important to future generations

– Loss of customers due to lower inventory on hand

– High turnover rates

Recommended actions to improve performance

– Reduce inventory

– Implement real-time inventory purchasing procedures

– Continue superior customer service and satisfaction

– International warehouses and showrooms

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member