Stitch Fix: Revolutionizing Personalization With Data   Case Solution & Answer

Stitch Fix: Revolutionizing Personalization With Data Case Solution


In 2011, Stitch fix, the e-service for personal selling was founded in the United States. Its motive is to deliveran innovative experience of shopping for both the individuals as well as their family. The organization was founded by Katrina Lake and Erin Morrison Flynn was founded by founder of Stitch fix along with its co-organization founder. Organization’s main goal is to provide easier manner and convenience to its customers in terms of what they love. The workforce of Stich Fix contains around 4000 stylists including 3 million active users or clients. Stich fix has number of brands which includes Fair lane, Market Spruce and Hawker rye etc. To gather the attraction of active and potential clients, it provides delivery, exchange and return of clothing and other accessories of apparel are free. The clients have been saved from selection of clothes and their accessories.

Problem statement

When the Stitch fix was founded, Lake was interested at the time by how little the shopping experience had changed since the 1970s. She was interested by the prospect of a future in which the technology and sales industries were intertwined, believing this, can result in a transformative customer experience. Lake was a data nerd who believed that by combining data and analytics, consumers would be able to see retail and buying in new ways.In early 2020, the big concern was how Stitch Fix would retain its business edge because (Amazon) had newly joined the business with a parallel approach called Prime Wardrobe.

Company background

Online store, Stitch fix delivered packages of clothes to consumers according to their demands. Its main goal was to discover “perfect garments for individual tastes”, and stay up with the latest trends. It does research of their clients in terms of trends and then finding and purchasing attractive goods for their wardrobes.

SWOT Analysis


  • Stitch fix has strong distribution network and large number of outlets in every state so that its products could be available to the customers on time.
  • Stitch Fix has low cost structure which helps the company to sell the product at lower cost.
  • Stitch Fix has large assets structure which generates better solvency for the company (Exhibit 1).
  • Stitch Fix has strong relationship with the dealers, which helps the company in promoting its product and in the provision of training.
  • The website of Stitch fix is very interactive, which helps in generating a large number of sale.


  • Even though, Stitch fix is spending more than average on research and development, but it is less competitive in comparison to some key competitors.
  • Most of the products have lower market share.
  • The decision making criteria is highly centralized, which means decision needs to get approval from the higher authorities, which leads to a decrease in innovation.
  • The budget of quality control is comparatively low as compared to its competitors.


  • The users of internet have increased throughout the world, which is why there is an opportunity to expand the business more towards online markets.
  • The development in new technologies can be used bring innovation in the business.
  • Customers can be encouraged to buy more through an improvement in the customer’s lifestyle and their standards.


  • The increasing number of competitors affects the organization’s capacity to extend its customer base.
  • The globalization forces the company to extend its boundaries across the national borders; therefor the company would have an obligation to deal with the cultural diversity.
  • Changes in framework regulatory creates a major threat to Stitch fix. The compliance with legal standards becomes more complex and exciting for the organization.

Rivalry among existing firms

  • It shows the challenge given by the competitors which can limit the growth of each other.
  • It can be decreased by achieving the customers’ satisfaction of customers on the differentiation basis.

The company can improve its relationship Porter’s five forces

Threats of new entrants

  • A healthy capital and investment is required to enter in industry. This reduces the threats from entering into the market unless their product is highly differentiated.
  • If the distribution channel is restricted, new entrants will be discouraged to enter.
  • If the switching cost of customer is high, then this threat will become much lower………………………

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