Analyzing Corporate Innovation at Hallenstein Glasson Holding Ltd.

This report analyzes potential innovation strategies for Hallenstein Glasson Holding Ltd., a New Zealand-based fashion retailer. It begins with an overview of the company, followed by internal and external analyses using matrices to assess its strengths, weaknesses, opportunities, and threats (SWOT). The report proposes 'Stitch Fix,' a subscription-based service, as a key innovation, detailing its design, implementation, and measurement. It emphasizes leveraging technology and human insight to provide personalized styling services. The report also covers structuring innovation within the company, designing the innovation process, measuring innovation aspects, and creating incentives to support innovation, including training programs and R&D budgets. It concludes by highlighting the importance of a culture of innovation, including cross-functional workshops and explanatory discovery events to enhance customer experience and in-house shopping.

Corporate
Innovation

Overview of Hallenstein Glasson
Holding Ltd.
 It is one of the New Zealand’s men’s lifestyle, fashion and street retail organization and was
founded in the year 1873
 They try to offer men’s fashion, footwear along with accessories that ranges from lifestyle
and street as well as innovative options of suiting demands of customers
 The areas covered by them is worldwide and revenues which have been earned by them is
370,937,468 (Martín-de Castro, 2015)

Internal Analysis Matrix
Primary Activities
Inbound Logistics
 Company has outsourced different inbound
logistics services (Donate & de Pablo, 2015)
Operations
 Improve the experience of customers
Outbound Logistics
 Providing in-store experience to the customers
Marketing and Sales
 Allows the customers for seamless shopping
Service
 Trial Scheme has been started for customers
Support Activities
Human Resource Management
 Excellent appraisal for employees
Technology Development
 Gaining knowledge about product development
Procurement Activities
 Minimizing overall impact of environment through
supply chain activities
Firm Infrastructure
 Development of different financial aspects

External analysis matrix
•Stable political environment
•Fair trade regulations
Political
•Competition is high in external environment
•The company has been responsive towards discount offers
Economic
•Company is aiming to spread brand awareness
•Organization offers products of various categories
Social
•Usage of the website channels
•Usage of high end technology
Technological
•Shown promptness in remaining updated
•Issues relating to health and safety of the employees
Legal
•Concerns relating to the environmental aspects
•Companies are repeatedly asked to five year long engineering plan
Environmental

SWOT analysis
Strengths
Major brand of high street fashion
Helped in fostering faith of customers
Weaknesses
Bad publicity as non trendy stores
Manual working increases the overall cost
Opportunities
New segments of the ethnic and traditional
wear
Development of website
Threats
Competition has increased
Government policies for retail stores
SWOT

What to innovate and how to
innovate
 Stitch Fix is one of the subscriptions based service for the customers of
Hallenstein Glasson Holding Ltd.
 The customers would provide data regarding the lifestyle along with dress
preferences along with measurements
 Proper leverage of combination of proper technological advancement
along with human insight in developing framework of service (Goffin &
Mitchell, 2016)
 Each of the different customers try on Stitch Fit Service at discounted cost
and the word of mouth publicity of the service will be spreading across
the country

Designing of Innovation Strategy
 The major aim of the innovation strategy is to provide the
opportunity to the customers is that they are not required to
pay in advance and they will be receiving suited styles for
their comfort.
 Proper valet will be allocated for the customers who will be
adopting the service wherein there can be contact system for
24 hours for the three days while using the service
 The different male customers face the different issues
regarding fitting and there is lack of appetite over the styles in
the entire market.

Structuring Innovation of Company
and Designing Process of Innovation
 Proper internal training and recruitment wherein the company is planning to employ more than 800
employees along with engaging more than 150 current employees to serve as the valet in the service
 Development of collaboration with customer reception agency and the project was launched pilot
scheme wherein the favoured customers will be enjoying the service at free of cost
 The graphic designers of the company will be developing 300 new styles for the pilot project scheme
and the organization will be planning for the rest of project

Measuring Innovation Aspects and Designing incentives to support innovation
 The organization wants more than 50% of the allocated stock of the
products which can be ascertained in the launching period of the stitch
fix scheme to be cleared
 Paid promotion of the new scheme will be launched and the
budget of New Zealand dollars 0.65 million is ascertained for
running the overall scheme for first eight months (Martín-de
Castro, 2015)
 There are different incentives which are designed in different
manners to support the innovation process. The first incentive
which will be providing discount in High Street Fashion to the
different customers

Learning innovation and Designing incentives to
support innovation
 The innovation learning can be driven by training along with development
scheme and the specialized R&D budget will be fixed which will be helpful
in launching of the new services
 Employees will be able to undergo the different residential courses to learn
strategies which will be implementation of the project
 The company is following five step strategy which will be designing
incentive for supporting innovation (Inkinen, Kianto & Vanhala, 2015)
 First step is empathising, it is the human centred approach which will be
provided to employees regarding the innovative service
 Furthermore, the ideation and analysing the challenges are analyzed that
helped in improving the service

Culture of innovation in SMEs and
conclusion
 Undergoing cross-functional workshops wherein the ideas related to the innovation will be discussed
 Inclusion of explanatory discovery events which will be helpful for customers in understanding scope of
innovation
 Therefore, it can be concluded that the major motive of the aspect is to improve experience of the
customers and providing the customers with in house shopping experience

references
 Donate, M. J., & de Pablo, J. D. S. (2015). The role of knowledge-oriented leadership in knowledge
management practices and innovation. Journal of Business Research, 68(2), 360-370.
 Goffin, K., & Mitchell, R. (2016). Innovation management: effective strategy and implementation.
Macmillan International Higher Education.
 Inkinen, H. T., Kianto, A., & Vanhala, M. (2015). Knowledge management practices and innovation
performance in Finland. Baltic Journal of Management, 10(4), 432-455.
 Martín-de Castro, G. (2015). Knowledge management and innovation in knowledge-based and high-tech
industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47,
143-146.