Innovation Management & Strategy: Hallenstein Glasson Holding Ltd

This report analyzes innovation management strategies for Hallenstein Glasson Holding Ltd., a New Zealand-based fashion retailer. It explores potential future innovations and provides an implementation report from the perspective of an innovation manager. The analysis includes internal and external factors, a SWOT analysis, and recommendations on what and how to innovate. Key areas covered are designing an innovation strategy, structuring the company for innovation, designing the innovation process, measuring innovation, and creating incentives to support innovation. The report also addresses learning innovation and fostering a culture of innovation within SMEs, aiming to enhance the company's competitiveness and market advantage.

Running head: INNOVATION MANAGEMENT
Innovation Management
Name of the Student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................2
Overview of Hallenstein Glasson Holding Ltd......................................................................2
Internal Analysis Matrix............................................................................................................3
Primary Activities..............................................................................................................3
External Analysis Matrix...........................................................................................................4
SWOT Analysis.....................................................................................................................7
What to Innovate........................................................................................................................9
How to Innovate.........................................................................................................................9
Designing of Innovation Strategy............................................................................................10
Structuring Innovation of Company.........................................................................................10
Designing Process of Innovation.............................................................................................11
Measuring Innovation Aspects.................................................................................................11
Designing incentives to support innovation.............................................................................11
Learning innovation.................................................................................................................11
Designing incentives to support innovation.............................................................................12
Culture of innovation in SMEs................................................................................................12
Conclusion................................................................................................................................12
Reference List..........................................................................................................................14

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Introduction
The report throws light on analyzing the innovation aspects which can be adopted by
Hallenstein Glasson Holding Ltd. which will be beneficial in transforming the different
business activities appropriately. In the present business world scenario, building a proper
business and operating the same, no longer guarantees that the business will be successful in
the competitive business environment. The main aim and purpose of the report is to showcase
the different innovative strategies which can be adopted by them as to improve the overall
competitiveness in the market and gain competitive advantage. Through proper internal and
external analysis matrix, the different strengths, weaknesses, opportunities and threats have
been analyzed which will be beneficial in improving the overall aspects of performance of the
company.
Overview of Hallenstein Glasson Holding Ltd.
Hallenstein Glasson Holding Ltd. is one of the New Zealand based men’s fashion,
lifestyle and street retailer. The company was founded in the year 1873 and it is
headquartered at Auckland, New Zealand. The company tries to offer the men’s fashion,
footwear and accessories which ranges from lifestyle and street along with innovative options
of suiting for the customers. It is one of the iconic menswear stores ands it is being
recognized for the value and fashion equation. The areas served by the company is worldwide
and the revenue earned by the company till the year 2018 is 370,937,468 which has been a
successful aspect for gaining competitive advantage in the competitive business environment.

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Internal Analysis Matrix
Figure 1: Value Chain Analysis of Hallenstein Glasson Holding Ltd.
(Source: Pinto et al. 2017)
Primary Activities
Inbound Logistics- The activities of HALLENSTEIN GLASSON HOLDING LTD.
are associated with storing along with receiving inputs of the various products. It is inclusive
of warehousing of the physical products and store the information of customers and they have
outsourced various inbound logistics services (Vitale & Pillan, 2016).
Operations- The main motive is to improve the experience of customers and they
require to work towards visits of customers. There were various issues related to the leak of
customer data and the operations became ineffective.
Outbound Logistics- There are different options for the customers to shop products of
HALLENSTEIN GLASSON HOLDING LTD. wherein they provide in-store shopping
experience through click and collect options.

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Marketing and Sales- Digital division of HALLENSTEIN GLASSON HOLDING
LTD. have been successful in improving the experiences of the customers and it allows the
customers to seamlessly shop using their mobile phones.
Service- The company has begun trial scheme for the customers to devote more space
for the fashion aspects of the company and improve overall experience of customers.
Support Activities
Human Resource Management- There are excellent appraisal for employees at
HALLENSTEIN GLASSON HOLDING LTD. will be beneficial in providing initiatives to
the staffs.
Development of Technology- There are different technologists working together with
suppliers as to gain knowledge about development of product.
Procurement Activities- The company minimizes the overall environmental impact of
the different operations through well-established supply chain.
Infrastructure of the firm- Development of the different financial tests such as proper
availability of the credit cards which will be beneficial for the success.
External Analysis Matrix
Political Factors
The government have recently imposed the policies like the Health and Safety
Standards of New Zealand with an aim of hazard identification, risk assessment as well as
risk control. As informed by Meynard et al. (2017), companies, which are based in New
Zealand are supposed to be stringently following these guidelines. Otherwise they would be
under the risk of undergoing penalization and even the government holds the authority to shut

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down the operations of the company for undefined time period. The Hallenstein Glasson
Holding Ltd. Faced penalizations when a warehouse employee was victimized in accident.
Charges of neglecting the government regulations were brought against the organization
against several Human Rights forum. According to the news of the New Zealand Bulletin,
Marks and Spenser is one of the rare companies which goes down the Fair Trade route in
their manufacturing and retailing (Spieth & Schneider, 2016). The fair trade regulations that
have been released by the company in their annual reports of 2018 show that their products
are packaged using recycled materials. Again, in order to generate value towards the
customers, the level of toxin in the raw materials used by Hallenstein Glasson Holding Ltd.
For the production of their men’s fashion range is minimal (Parameswar, Dhir & Dhir, 2017).
The organization also follows the animal welfare policy of the government and woolens are
extracted from the animals in purely sterilized and safe environment.
Economic Factors
The current economic scenario of the organization shows that competition in the
external market of the company is extremely high. This high level of competition will affect
the retail sales of Hallenstein Glasson Holding Ltd. to much an extent. The economic
slowdown and the depreciation of the value of the local currency against the US Dollar that
have affected the purchasing parity of the customers. Hit hard by this factor Marks and
Spenser was forced to close down number of their outlets and also conduct job cuts by about
2% in the international market, which accounts to about sacking job of about 70000
employees (Rodríguez, Paredes & Yi, 2016). However, it can be perceived that the customers
of Marks and Spenser are always responsive towards discount offers by the company and the
20% on all garment styles that the company offered to the customers in the run up to
Christmas in the year 2018 saw a 21% increase in the sales rate of the company.

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Sociological Factors
In the last few years, the marketing approach of the society have changed. As stated by the
CEO of the organization, the company is aiming spread the brand awareness, specifically in
the clothing domain. Besides, they want to endorse all their innovative and favored products
through online sales channels also. The organization offers products of various categories
based on the appeal to different markets in context to social class and other demographics. As
Moliner-Velázquez et al. (2019), expects, this will help in reducing the adverse impacts of the
reduction of the purchasing parity of the customers in the most potential local markets of
Hallenstein Glasson Holding Ltd. the organization is planning to develop a disruptive
innovation in the high street clothing fashion by introducing ranges of less expensive men’s
fashion.
Technological Factors
The market position of the brand need to be communicated to the customers,
continuously. Most of the brand marketers use large capital to create brand awareness. The
channel of website modeling is one important aspect that needs to be exploited at best. Now
the company is planning to use celebrity icons in promoting the new innovative products that
are going to hit the market. The organization also uses high end technology in their
promotional campaigns (Scheller, Johanning & Bruckner, 2019). The augmented reality
advertising campaigns at the time of the soccer premium league in 2017 helped them to foster
their brand awareness among international audiences.
Legal Factors
The organization have shown promptness in remaining updated with the latest regulations of
the all the states where they are operating. Facing issues regarding health and safety of the
organization, the legal protection policy of the employees have been updated. The new

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regulations like the Fair Packaging and Labelling Act 1996 have also been considered
seriously by the organization.
Environmental Factors
All the companies operating in the country are asked to change the ways they conduct
their manufacturing of the consumer goods. The companies are asked to be concerned
regarding the usage of raw materials in their products and specifically implies in context to
the textile industry. The organizations are being repeatedly asked to reduce the toxin level in
their products. In light of the desired changes, the organization has launched their own Green
Production Policy. The company has launched a five year long reengineering plan to
emphasis and implement a strategy to become a completely carbon neutral brand, zero waste
to landfill policy, sustainable sourcing as well as health promoting business strategy. It is
expected that the policies will be implemented within the next 5 years or so.
SWOT Analysis
Strengths
The company Hallenstein Glasson Holding Ltd. is a major brand in the high street
fashion which is very popular fashion genre in the country. Up-gradation of the product
quality of Hallenstein Glasson Holding Ltd. have helped to foster the faith in the customers.
The customers of Hallenstein Glasson Holding Ltd. can now fulfill all their shopping needs
under the same roof of Hallenstein Glasson Holding Ltd. now. The company currently have
1200 different suppliers for 400 different product varieties. Compared to other clothing retail
brands, the supply line of Hallenstein Glasson Holding Ltd. is more widespread (Helminen,
Ainoa & Mäkinen, 2016). Again, the company have about 600 retail stores in whole of UK.
This helps in making the business wider and sales value is also fostered as an outcome of this
widespread presence. Lastly, there are product designs of popular designers in Hallenstein

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Glasson Holding Ltd. outlets which is another factor that fosters the brand loyalty. The
organization also endorses products of other brands like autograph, Big&tall, Collezione,
North coast, Blue harbour and so on. As such, the negative impact of market differentiation is
reduced.
Weaknesses
Recently, the organisation have focused on product diversity. However, the sales
parity since 2012 to 2016 had been considerably low because of the ill-repute of being out
fashioned and non-trendy. Another misconception among the customers of Hallenstein
Glasson Holding Ltd. is that the product line of the company is curated based on the needs of
the mature customers (Foroudi et al. 2016). The aspect of teenager fashion have been
constantly ignored by the organization. The delay in refreshing the product lines is the reason
behind the development of such a perception.
Manual working is another factor that can help the organization to diminish the sales value of
the organization. This is because the operational costs of the company is increased when
extra manual labor is involved in any production line. As an impact, it is necessary that
mechanized and automatized material handling facilities have to be installed by the
organization in the near future. The level of perfection in the product lines of same series is
also impacted adversely.
Opportunities
The major opportunity for business growth before the organisation in the current
moment is the internationalisation of their products. However, international franchising is the
only opportunity to export products to other countries. On the contrary, given the export
opportunities and costs incurred in exporting, the company would be able to get hold of very
few franchises. This is why, Hallenstein Glasson Holding Ltd. wants to enter the UK market

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with a small product line that would be internally produced in UK. Currently, the products of
Hallenstein Glasson Holding Ltd. are available on import in places like Germany, Canary
Islands and so on.
Threats
As highlighted by Roy et al. (2017), the biggest threat to the business of the
organisation is the presence of maximum number of market competitors. Multinational
corporations like Asda, Sainsbury, and Tesco Express are attempting to make market entry in
New Zealand. As an impact, there is high risk of market segregation.
What to Innovate
In order to make the user experience of the high street fashion customers better in
New Zealand, The Innovation Manager of the company is planning to introduce an exclusive
service for the customers. The service have been named, Stitch Fix which is going to be a
subscription based service for the customers of Hallenstein Glasson Holding Ltd. the
customers who accepts the subscription will need to update their personal data under the
“Fixes” category of the mobile application of Hallenstein Glasson Holding Ltd. there the
customers would provide data regarding their body type, lifestyles as well as dress
preferences along with their measurements (Pantano & Viassone, 2015). Based on the
preferences, the stores will suggest styles to the individual customers. The customers will get
products delivered to their homes. They can choose the products in a time of three days and
keep the ones they like. The rest would be collected by the company agent in due time.
How to Innovate
Leveraging a combination of technology and human insight the organisation is
attempting to develop a framework of service. At first selection of 5000 most loyal customers

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of Hallenstein Glasson Holding Ltd. Each of these customers will be able to try on the Stitch
Fit service at a discounted cost (Amling & Daugherty, 2018). As such, the word of mouth
publicity of the service will spread across the country.
Designing of Innovation Strategy
The organisation wants real life stylists to suggest fashion for the customers. The aim
is prevent the customers to prevent any of the products. Essentially, when the customers are
not needing to pay in advance and they are getting suited styles in the comfort of their own
homes, it is expected, they would like to retain most of the products for themselves. A valet
would be allotted for each customer who adopts this service who would keep in contact 24
hours for all 3 days when they are using the service (Amling & Daugherty, 2018). As a subtle
strategy, the organisation would be employing the valet to pursue the customers to understand
that all the curated styles selected for him would be best for him to take up. In this context, it
deserves mention that this service is exclusively for the men. This is because, the women
have many avenues of altering their dresses. However, the men seldom have access to such
services. However, the male customers also face issues regarding fitting and lack of appetite
over styles available in the market. The organisation wants to capitalise over this market issue
as a business opportunity.
Structuring Innovation of Company
At first an application will be developed where the customers would provide their
data inputs. After that the stage of internal training and recruitment have to considered where
the organisation is planning to employ 800 new employees and engage 150 current
employees to serve as valet in this service (Pinto, Dell’Era, Verganti & Bellini, 2017). They
have to develop collaboration with a customer reception agency. Thereafter the project would

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be launched on a pilot scheme where the favoured customers would enjoy their service at free
of cost. After that commercial implementation of the scheme would be possible.
Designing Process of Innovation
At first the graphic designers of the organisation would develop 300 new styles for the
pilot project scheme. Based on the requirements posted by the consumers in this free trial, the
organisation would plan for the rest of the project.
Measuring Innovation Aspects
Initially the company wants 50% of the allocated stock of products ascertained for the launch
Period of the stitch fix scheme to be cleared. After that paid promotion of the new scheme
will be launched. A budget of New Zealand dollars 0.65 million is ascertained for running the
scheme for first eight months.
Designing incentives to support innovation
Incentives can be designed in various ways to support the innovation. The first incentive that
can be used here is to provide discount in specific designs of High Street fashion to the
customers who use the stitch fix service (Tivasuradej & Pham, 2019). The next incentive will
be providing higher salaries to the designers who will be creating the products for the stitch
fix scheme.
Learning innovation
Innovation learning in organisation will be driven by training and development scheme.
Specialised research and development budget will be fixed for launch of the new service. The
employees will be able to undergo online residential courses to learn the strategies of
implementing the steps of this new project as well as understand the benefits of implementing