HBC Business Analysis: Strategic Recommendations for Future Growth

This report provides a comprehensive analysis of HBC, a retail company. It begins by emphasizing the importance of building relationships for organizational growth and highlights HBC's mission to adapt to the changing environment and meet customer needs. The report then delves into a SWOT analysis, identifying HBC's strengths (diversified products, convenient locations, and technology), weaknesses (ownership changes, high operational costs, and fewer employees), opportunities (expansion potential, increasing demand, and capital), and threats (economic instability, high human resource costs, and competition). Following this, the report applies Porter's Five Forces to assess HBC's competitive position, emphasizing the strong threats from new entrants, substitutes, suppliers, buyers and intense competitive rivalry. Finally, it discusses successful strategies employed by HBC, including reward programs, online presence, differentiation, and revitalization to regain market share and serve customers effectively. The report concludes by referencing the sources used in the analysis.

Running head: HBC
HBC
Name of the Student
Name of the University
Author note

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Answer to question 1:
Building relationship is important as it helps in developing networks, and unity of
voices for products or services that are significant for the growth of the organization
(Herremans, Nazari & Mahmoudian, 2016).
The mission statement of HBC is about to stay strong and change with the changing
environment and to serve the Canadians an experience that s better in terms of retail and also
to meet the requirements of their customer by providing better quality, value, variety and
service which all can trust.
Stakeholders wanted HBC to change and customize their products according to the
market trends of the organization so that they can also remain in profits.
According to the stakeholders, it was important to have a diversification of products
provided.
Answer to question 2:
STRENGTHS
 Diversified products.
 Location.
 Technology.
WEAKNESSES
 Changed ownership.
 The high cost of operation.
 Fewer employees.
OPPORTUNITIES
 Possibility of expansion.
 Increase in demand.
 Huge capital.
THREATS
 Weak economy.
 High cost of human resources.
 Competition.

2HBC
STRENGTHS: there is a wide range of products and a deep assortment in HBC which
includes clothing, home decors, cosmetic products and many more.
Moreover, there is an availability of the store at very convenient location helping
more people to visit the store more often. It has developed in terms of technology and has
facilitated online shopping helping the customers to get their desired product at their
fingertips.
WEAKNESSES: HBC has faced a lot of change in ownership and hence cannot lower the
price of the product, letting down many hopes of the people.
The employees enrolled with this organization is very less, and it sometimes becomes
difficult to manage a huge flock coming together in the store.
OPPORTUNITIES: there is a scope for expanding of HBC through the introduction of
technology as there is an increase in the growth of the online shoppers.
Besides, there is a hike in demand increment of more private-level brands, making it
an opportunity to grow globally.
THREATS: The economic breakdown discourages the customers to make less purchase
affecting the company and the growth of giant and other retailers also increase more
problems for the organization.
Answer to question 3:
Porter’s five forces help in knowing the competitive position of the firm (Dälken, F.
(2014).
Threat to new entrants: STRONG
Threat of substitutes: STRONG

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Bargaining power of suppliers: STRONG
Bargaining power of buyer: MODERATE
Competitive rivalry: STRONG; there is a huge competition in the market for retailers and
many substitutes, therefore, it becomes difficult to draw the attention of customers from the
giant retailers.
Hence it becomes a huge problem and must be dealt with applying strategic plans and
strategies.
Answer to question 4:
There were certain reward programs started by the company and going online was one
of the successful strategy used.
However, other strategies were also adopted, and customers were provided with
unique products and services. This was the implementation of the differentiation strategy
(Banker, Mashruwala & Tripathy, 2014).
HBC also used revitalization strategy and renovated their stores by redesigning it that
helped customers with a deep assortment of products (Dev & Keller, 2014).
These strategies helped HBC to make a comeback in the market serving customers in
a better way.

4HBC
REFERENCES:
Banker, R. D., Mashruwala, R., & Tripathy, A. (2014). Does a differentiation strategy lead to
more sustainable financial performance than a cost leadership strategy?. Management
Decision.
Dälken, F. (2014). Are Porter’s five competitive forces still applicable? A critical
examination concerning the relevance for today’s business (Bachelor's thesis,
University of Twente).
Dev, C. S., & Keller, K. L. (2014). Brand revitalization. Cornell Hospitality Quarterly, 55(4),
333-341.
Herremans, I. M., Nazari, J. A., & Mahmoudian, F. (2016). Stakeholder relationships,
engagement, and sustainability reporting. Journal of Business Ethics, 138(3), 417-
435.