Strategic Analysis of Hillberg & Berk in Designer Jewellery - Case

This case study solution provides a comprehensive analysis of Hillberg & Berk, a designer jewellery business, utilizing frameworks such as PESTEL, Porter's Five Forces, and VRIO to evaluate the company's external and internal environments. The analysis identifies key strategic issues and offers recommendations for addressing them, including the adoption of a push and pull strategy to enhance customer satisfaction and expand market share. The report also emphasizes the importance of aligning the company's mission, vision, and values to foster collaboration and improve overall business performance. The analysis covers political, economic, social, technological, environmental, and legal factors impacting Hillberg & Berk, as well as an assessment of the company's resources and competitive advantages. The solution aims to provide a strategic roadmap for the company's continued growth and success in the competitive designer jewellery market.

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 1
HILLBERG & BERK: AIMING TO SPARKLE IN THE DESIGNER JEWELLERY
BUSINESS
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Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 2
Executive summary
Hillberg and Berk makes contributions towards a number of women organizations as well as
associated charitable organizations. The organization’s success and continued growth is
based upon the feet of its brand loyalty. In addition, the company has several opportunities
and has embarked on the building of a bigger and more vibrant brand reputation. It intends to
achieve this objective through the delivery of more qualitative designs as well as products.
This analysis has been done through tools such as the value chain, porter’s five forces,
PESTLE and VRIO. These tools and frameworks will help in the evaluation of the overall
company profile as well as its current strategic setup. The analysis will also help in the
identification of certain strategic issues with amended solutions necessary to find solutions
for them. The report will also provide recommendation including suggesting the go-forward
approach to the business part of the company in expansion efforts. On top of the external
vision, the mission, values as well as vision of the organization, there would be further
recommendation of values to ensure that Hillberg and Berk is provided with a much
improved opportunity towards a collaborative approach for improved business performance.
It has been recommended for the company to adopt the Push and pull strategy. The adaption
of the pull and push strategy capitalizes on an opportunity through the enhancement of
customer satisfaction. The organization would achieve this through the development of new
product lines that would help to increase its market share while also entering into new
businesses.

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 3
Table of Contents
Introduction......................................................................................................................................4
Analysis of HILLBERG & BERK’s external environment....................................................................4
Political factors.................................................................................................................................4
Economic factors...............................................................................................................................4
Social factors.....................................................................................................................................5
Technological factors........................................................................................................................5
Environment factors.........................................................................................................................5
Legal factors......................................................................................................................................6
Five forces model to the industry.....................................................................................................6
Key findings.......................................................................................................................................7
Evaluation of the internal environment of the company.................................................................7
Resource based analysis will be used to provide the relevant answers (RBA)................................7
VRIO framework...............................................................................................................................8
Resources (if any) that are helpful in sustaining the firm’s competitive advantage.......................8
Primary strategic issue facing the company.....................................................................................8
Recommendation/solution? Evaluate your solution(s). How does this solve the problem?..........8
Conclusion.........................................................................................................................................9
References.......................................................................................................................................10

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 4
Introduction
There are a number of strategies that a company can focus to ensure that it maintains its
brand reputation within the market and also be in a position of gaining a competitive
advantage. The organization under analysis is Hillberg and Berk that was founded by Rachel
Mielke in the year of 2007. The company is established on the foundation and plan to create
jewelry of world class standard. The goal of the company is to attain a brand presence within
the market. The company’s goal is to empower the women while also building strategies
which make its customers loyal. The report will focus on highlighting a complete
organizational strategic analysis through specific tools as well as frameworks (Ingram, et
al.2015).
Analysis of HILLBERG & BERK’s external environment
PESTEL analysis
The PESTEL analysis is a significantly important tool in the process of analyzing any
organization’s external environment. It is particularly important to the organization in it is
efforts to analyze the market environment before commencing any processes concerning
product or service marketing (Williams and Figueiredo, 2014). It is henceforth important that
the environmental analysis must feed all the processes of planning and should equally be
continuous. In that sense, the PESTEL analysis focuses on several factors including the
political, economic, social, technological, environmental as well as legal factors which affect
the organization and in this case Hillberg & Berk.
Political factors
Klapper etal. (2010) explains that the effectiveness of government as well as the related
political stability plays a significant role in creating a stable environment for the business.
Canada has been governed in a highly stable manner for a long time and thereby creating
conducive environment for the growth and development of firms such as Hillberg & Berk.
Because of the stability of the country from a political point of view, the tax policies within
the Canada where the firm operates are highly favorable. The company has been able to
benefit from the lower policies of taxation over the last decade. This has resulted in the
company attaining high profits while also increasing its expenditure on research,
development as well as innovation. More so, the growing inequality within Canada can lead
to alterations within the policies for taxation. In addition, the local governments are looking
into the implementation of Jewelry specific taxation policies as a way of containing the
carbon footprint associated with the Consumer Cyclic sector. Hillberg & Berk must also be
able to manage the diverse regulations within the various markets in which it operates. Over
the last few decades, Finance and Accounting has seen an increased scrutiny in terms of the
regulatory frameworks (Bose, 2008).
Economic factors
The great recession of 2008 created a situation of easy liquidity within the market. This has
led to increasing inflation in HILLBERG & BERK’s markets. Such inflation levels have a
negative impact on the organizational customers. Moreover, basing on the data within
Hillberg & Berk’s, the volatile rates of exchange can have an impact on Hillberg & Berk’s
investment plans in both the short and long run. In terms of the efficiency of the financial

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 5
markets, the company can have entrance to vibrant financial markets while also having an
easy accessibility to liquidity within the equity market to ensure further expansion both
nationally, regionally and internationally(Manteghi and Zohrabi, 2011). There is also a high
level of economic performance within the markets in which the company operates. It is
projected that the Jewelry market will grow by about 10-12% due to enhanced government
expenditure, increased investment within the sector as well as disposable income. There is
also an availability of the core infrastructure by the government. The data provided in the
case study indicates that there is an enhanced government investment in efforts focused on
the infrastructural development to improve and facilitate the business environment. Hillberg
& Berk’s can make use of this infrastructure to enter tier 2 as well as tier 3 markets. In
addition, the continuously increasing trade liberalization policy within Canada can help the
organization to make further investments within regions which are currently off-limits to the
firm (Dobbs, 2014).
Social factors
The level of education is high in Canada particularly in the jewelry and design sector.
Hillberg & Berk can therefore leverage this high education level to expand its presence in
Canada. From a demographic point of view and more particularly in terms of the cyclical
products, the company appears to have the demographic aspect on its side. Canada is mostly
a young nation and continues to therefore grow. Hillberg & Berk can take advantage of this
trend to address the needs of different segments within the population. There is also the huge
role played by the media in term of influencing public opinion. Hillberg & Berk has taken
and continues to take advantage of social media and traditional media to build a marketing
network which is highly efficient. There is also an evolution in terms of the roles played by
gender within Canada. The company can test several concepts to provide support and also
cater for the continuously evolving gender roles within the local market (Vining, 2011).
Technological factors
With enhanced technology particularly in Canada, the organization’s supply chain partners
have been empowered. Because of technology, the organization’s product life cycle has been
shortened. This has enabled the suppliers to be able to swiftly develop new products. This
turn of events has put the company’s marketing department on pressure to keep its suppliers
happier through the promotion of a diverse range of products. The company has further taken
advantage of the technological advancement through lowering its operational and production
costs. Contemporary technology contributes a lot towards lowering the servicing and
operations cost especially from the point of view of accounting as well as finance (Macchion,
etal.2015). It is important for the company to invest in the restructuring of its supply chain to
create more flexibility necessary for the company to meet the needs of its customers.
Innovations coming about as a result of technological innovation are fast creating disruptions
within the supply chain model for the organization. The disruptions arise because
technological innovations create a platform where channel partners are provided with a
greater information access and thereby leading to improved profit sharing (Utami and Lantu,
2014).
Environment factors
Recycling is rapidly emerging as a norm as opposed to being merely something good in
Canadian economy. It is therefore important that Hillberg & Berk enganges in plans to create
a culture which emphasizes the adherence to expectations as well as regulations within the

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 6
consumer cyclical sector. More to that, the continuous and rigorous scrutiny by the
environmental agencies has also added to the organization’s operational costs. There is an
alteration in terms of the product innovation priorities for the company because of the
environmental norms being undertaken within Canada. In most of the cases, the design of the
products has its basis on the environmental requirements and standards as opposed to paying
attention to the traditional propositions for value. The improved awareness amongst the
customers has ensured that the role played by the environmental factors is enhanced and is
placed at the center of the organization’s overall business strategy (Porter, 2008).
Legal factors
It is critical that the organization’s practices are consistent with Canada’s business laws. The
business laws and overall procedure followed by Canada is quite elaborate and hence it’s
necessary for the company to pay attention to every detail. There aspects such as laws
relating to data protection. Data protection has emerged in Canada as a critical aspect in
matters concerning both intellectual property rights as well as privacy issues. It is important
for Hillberg & Berk to consider is Canada has a robust enough mechanism that can the
protection of their products and overall data against breaches. It is important to note that
Canada’s taxation rates are some of the most favorable in the world and therefore creating a
favorable environment for the growth and development of companies such as Hillberg &
Berk. Canada is known to have a low federal as well as provincial corporate rate of tax. The
low tax rates within the Canadian business environment presents external opportunities for
the business to continue thriving and improving on its overall profits and revenue generated.
Five forces model to the industry
Hillberg & Berks business porter five forces model analysis is reflective of the competitive
environment associated with the industry. From the data provided in the case study, the
following elements stick out in terms of porter’s five forces. Hillberg & Berks does hold its
vision and goals quite closely as it creates a perfect environment for them to orientate its
innovation in view of the choices associated with its investment and strategic choices. Within
the jewelry and design industry, the profitability of the industry is dependent on the following
forces.
The suppliers’ bargaining power. Hillberg and Berk has a limited concentration over the
suppliers of its products. The added value on the quality of the products is of vital importance
to the customers. It is in these products that the company continuously seeks to improve its
investments to ensure that it is able to maintain its suppliers. It is also noted that the company
is new and emerging within the industry for which there are only medium opportunities f or
the suppliers’ bargaining power.
The customers’ bargaining power. There is a low bargaining power of the customers
enjoyed by the HIllbeerg and Berk and the others involved in this kind of industry. Buyers
will still be inclined to the buy the product even when its price increases. This is a long term
positive effect on the entire industry. The buyers have limited choices which in the end
pushes them into buying the products at the prevailing prices regardless of the increment.
Although it should be noted that the buyer usually requires customisation as well as high
quality products (Williams, and Figueiredo, 2014).
The threat from substitutes. There are a limited amount of substitutes concerning the
products and services as well as designs provided by HIllbeerg and Berk. The organisation’s

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 7
designs and products are made of the highest quality. Any attempts to duplicate them by the
rivals comes with low performance levels and equally poor level of quality. Moreover,
because of the low risk for competition, it is not always possible for the customers to switch
easily from one brand to another.
The threat from new competitors: The fact that the design and jewellery industry is highly
costly particularly in terms of starts up and operational costs, HIllbeerg and Berk has a
medium threat from new competitors. There are specific entry barriers in the industry
including a solid and huge networks of distribution, solid and strong brand reputations as well
as massive requirements costs.
Current rivalry. There are a number of competitors for HIllbeerg and Berk including both
huge and small. The riding power associated with the current organizations is huge since
most of them were established way back before the institution of HIllbeerg and Berk. The
businesses faces a huge pressure from the rival existing firms and thereby limiting its growth
potential. The level of profitability in this kind of industry is usually low since firms have a
tendency of adopting aggressive targeting as well as pricing strategies against one another.
Key findings
On the basis of the analysis, it is apparent that HIllbeerg and Berk H&B has weaknesses in
regard to making value relations with the suppliers. In that regard, the company is not
positioned to prevent fluctuations with the bargaining power of the suppliers. The threat
posed by the new competitors is a significant one and has the potential to affect the
organisation’s brand value as well it market share. It is henceforth necessary for the
organisation to focus its energies on the implicit needs as well as expectations of its clientele.
This would enable it to strengthen its basis for differentiation. The company can also raise the
costs of switching by adopting long terms relations with its customers (Cooper and
Finkelstein, 2014).
Evaluation of the internal environment of the company
Resource based analysis will be used to provide the relevant
answers (RBA)
One of the most important intangible assets that the company has is the care that is given the
company’s customers. The tangible assets of the company include, one of the biggest
jewelries center in Canada, with a net capital of over $10 million. Strength of the company is
that it has been able to deal with the human capital and all the workers at the company are
fully motivated. Employee motivation has been the sole source of the continuous innovations
in the designs of the company. The weakness of the company lies in the limited ability
incorporate the cages in the technology in their business, this inhabits the success of the
company.
One of the ore values of the company is to empower women towards joining entrepreneurship
and giving back to the ever-supporting community. Precisely, the mission of the company is
to help women and girls capture their desired sparkle and to most importantly support the
project that are initiated by women in nearby communities and worldwide. The company
therefore exits to change the lives of women through improving in their income base. This is
exactly what the company has been doing since its establishment, therefore the company is
slowly achieving its mission.

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 8
The estimated annual revenue of the company is $ 10.1 million, the company did not achieve
this in the first few years of its existence but it was after a gradual process. The company has
an estimated total of 64 employees who directly participate in the running of the company.
The company also has over 30 retail shops in Canada and two new stores bi opened up. There
is no specific competitor in this kind of business within Canada, there are 5 major companies
that are putting stiff competition to the company, but it has been able to outsmart them for
now.
VRIO framework
Strength/Resources Valued Rare Incomparable Organizationally
Maintained
Brand uniqueness YES YES YES YES
Custom-made
jewelry
YES YES YES YES
Sparkle assortment YES YES YES YES
Jewelry Designs YES YES YES YES
Jewelry quality YES NO YES NO
Women based
entity
YES NO YES
Women
empowerment and
employee growth
YES YES YES YES
Warranty period
for a singular one
YES NO NO YES
Resources (if any) that are helpful in sustaining the firm’s
competitive advantage
The brand uniqueness, customization of products and designs provided by the company are
not likely to be duplicated. This high level differentiation would be very helpful in
maintaining the competitive advantage of the company.
Primary strategic issue facing the company
The company’s major strategic issue is at business level and it’s concerned with the
company’s incapacity to make value relations with its suppliers to halt the constant
fluctuations with the bargaining power of the supply. There are several symptoms which
underlie this particular strategic issue and they include
 Lack of regular communications and engagement of the suppliers in the process of
decision making.
 There is also an issue relating to constant duplicates made in the complete same style
with the products provided by the company. Even though the quality is not the same
as that of the company, it is still a threat to the reputation of the company.
 Constant fluctuations in terms of the suppliers’ bargaining power
Recommendation/solution? Evaluate your solution(s). How
does this solve the problem?
The company should consider adopting the go forward strategy. The go forward strategy
would help the organization maintain while also improving its creative culture. By going

Hillberg & Berk: Aiming To Sparkle In The Designer Jewellery Business 9
forward, and maintaining a creative culture, the company would be in position to figure out
creative ways in which to bring the suppliers on board and find ways of incorporating them
into decision to making to curb the problem of supplier bargaining power fluctuations
(Bartusková and Kresta, 2015.
The company should invest in training its employee and equipping them with the latest
technological skills. The equipment of employees with innovative and creative skills would
enable them to handle compute aided designs and the related software. This would go a long
way towards solving the problem of attempted duplications of the company designs by
implementing much more sophisticated 2D and 3D designs (Williams and Figueiredo, 2014).
The company should adapt the Push as well as pull strategy. The adaption of the pull and
push strategy capitalizes on an opportunity through the enhancement of customer satisfaction.
The organization would achieve this through the development of new product lines that
would help to increase its market share while also entering into new businesses. The pull and
push strategy leverage the organization’s strengths. By engaging in new lines of product
development, the company will be taking advantage its huge amounts of resources and also
consolidating on its already vibrant customer feedback demands and engagements. By
adapting this particular strategy, the company would invest less in marketing as it would have
greater reach for a diversified clientele base (Pantano, 2016). This would help to enhance
value creation within the company through cutting on marketing costs and while quality is
maintained. It would also help lessen the time required to design its products through the
maintenance of close relationships with the suppliers which gradually enhances the
profitability of the company. The adoption of the pull and push strategy would enhance the
organization’s market presence thereby enhancing its market share. The company might have
to incur an initial high cost in terms of research and development for the new product lines.
Moreover, the addition of all strategies might cause issues such as product failure particularly
with regard to the new product lines. The new product lines should be implemented within a
period of two years as this would allow ample time for research and development.
Conclusion
In summary, the formation of H&B by Rachel Mielke in 2007 was born out of her passion
for jewelry design as well as entrepreneurship. The operation of the organization is through
the maintenance of women and their lifestyles. In the aftermath of undertaking the analysis of
the company through Value chain, PESTLE, porter’s five forces and VRIO analysis, it is
evident that the main focus of the company women empowerment. The company undertakes
the role of women empowerment through the provision of various training concerning skill
development as well as the establishment of the company’s future.

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