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Store 24 Case Solution & Answer

Store 24 Case Solution

Introduction

Store 24’s Chief Executive Officer and Chief Financing Officer had to decide about either abandoning or continuing the “Ban Boredom” strategy in the fiscal year 2000. Although the financial performance of the store increased form 1998-2000, but the company’s Ban Boredom strategy was not up to the customer’s standards. The senior management had to decide regarding whether to rely on the financial results or just focus on the soft research data on the market while making the final decision related to the Ban Boredom strategy.

Problem Statement

In order to remain competitive in a mature and a highly competitive industry; Store 24 introduced the Ban Boredom Strategy, which was aimed at creating a differentiation point for the store in comparison to its competitors. The strategy’s focus was on providing an entertaining, fun and creative environment to the customers, which was based on different themes and promotions. But the recent customer surveys indicated that the strategy was not resonating with the store’s customers. The survey showed that the customers found a very little differentiation in store as compared to its competitors.

The customers were unable to relate to the creative, fun and entertainment based environment. The survey concluded that the customers preferred good product selection and quick services. Though the company’s financial results improved with the strategy’s implementation;the customers’ satisfaction level were still low and the company’s management had to decide, whether they should rely on the financial results or just focus on the soft research data about market for making the final decision related to the Ban Boredom strategy.

Company Background

Store 24, was a privately owned convenient store in England. It owned a total of 75 stores located in different vicinities, including: Hampshire, Connecticut, Rhode Island and Massachusetts. It was the fourth largest store, which hired 800 employees. Among the 75 stores, 45 were situated in the urban areas and the remaining were located in the suburban areas. Store 24 generated a total revenue of $180 million in the fiscal year 1998. The company was comprised of 29% cigarette sales, 3% sandwich sales, 13% snacks sales and 2% coffee sales. The company managed to differentiate itself from its competitors by introducing entertaining atmosphere in stores, by adopting the “Ban Boredom” and the “Cause You Just Can’t Wait” strategy and the company also used a balance score card to measure the effectiveness of the implemented strategies…………………..

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