Case Study Analysis: Spanx, Attribution Theory, and Business Strategy

This case study delves into the entrepreneurial journey of Sara Blakely and her company, Spanx, focusing on the application of attribution theory to understand the factors contributing to her success. The case explores how Blakely, initially facing setbacks in her career, leveraged her determination and understanding of the market to create a highly successful brand. It highlights the advantages of identifying market gaps, leveraging opportunities like the Oprah Winfrey endorsement, and maintaining a proactive approach. Disadvantages include initial rejections and competition from established brands. The analysis proposes short-term strategies such as product innovation and market expansion into Southeast Asia, along with long-term strategies like diversification and strategic partnerships. The recommendations emphasize the importance of adaptability and strategic decision-making in ensuring the continued growth and success of Spanx.

The youngest billionaire: Attribution theory
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Summary: Summarise the main issues identified in the case study that is relevant to the topic.
The case study essentially aims to focus on the story of the Spanx which is a start up by Sara Blakely who is
the youngest billionaire as present around the globe and is self-made. The case revolves around how
Blakely started off as an ordinary girl looking out to establish her career in the field law but failed to do so.
However, this aspect did not demotivate her and instead, she tried even harder and found a job at a Kid`s
club while still engaged full time in sales job as well. Her inquisitive nature and the zeal to do well helped her
in finding Spanx which is currently sold by more than 50 countries and is highly popular and loved by the
celebrities as well. Hence, as agreed in the Attribution theory, it can be effectively mentioned that, the
factors which influencer her to perform considerably well can be essentially stated to be the zeal to perform
well. The lack of proper pantyhose products and in consideration with this, the understanding about the
lingerie and pantyhose market.
Advantages: Describe the advantages and explains how they are relevant to the topic.
The advantages can be referred to be the aspects of operations which may lead to better factors and
influence the businesses to perform considerably well. In regards to this, the different advantages which are
available for the business can be agreed to be as follows:
1. The lingerie market which offered the customized products can be agreed to be rather limited in
nature. Here the products were although present; they were not appropriate enough and did not
meet the needs of the target audience accordingly (Story and Neves 2015). In line with this, this
offered Sarah Blakely with an opportunity to attain success in the market.
2. Another advantage which leads to the success can be agreed to be the fact that, Oprah Winfrey
incident assisted the designer in attaining long term procedure. This essentially means that, when
the products reached the Oprah Winfrey market then in such a scenario, the growth of the product
and the business idea became essentially popular. In addition to this, it can be agreed to it that,
when the product was used by such celebrities, its popularity became easier to ensure (Rogoff, Lee
and Suh 2004).
3. Another advantage was the willingness of Blakely to undertake an activity. Blakely had the zeal to
perform well and believed that she would be required to undertake several activities which would
thereby lead to success of the business outcomes.
Disadvantages: Describe the disadvantages and explains how they are relevant to the topic.
Very often, the enterprises are faced by certain challenges which tend to act as a certain disadvantage and
tend to discourage an individual who may then act as a barrier in this associated aspect. In consideration to
this, the disadvantages as faced by Sarah Blakely can be stated to be as follows:
At the initial stages of the business opportunity, Sarah faced several rejections which slowed down her
speed of conducting a business (Reinhard, Stahlberg and Messner 2008). In association with this, it can be
agreed to it that, had Sarah been given this creative opportunity earlier, then in such a scenario, she would
have been able to gain more success.

Secondly, the brand faces competition from several popular brands which sell similar products. These
products and brands have been present in the market since a very long time and in consideration with this, it
becomes effective to state that, when these products will be considerably popular in the long run, then in
such a scenario, the firm will have to come up with new and better opportunities to manage the business
adequately.
Additionally, she relied on the Neiman Marcus who provided her with a small chance to sell her products.
Had she been given a better focus and exposure, she would have received an opportunity to perform
considerably well.
Options: Develop alternative courses of action for the manager and/or stakeholders could take
that are relevant to the topic.
The different options can be described as the initiatives which the different enterprises will be required to
undertake can be agreed to be the short terms and the long term initiatives which the firm would be required
to undertake in order to ensure better operations and focus in the long run. In consideration with this, it is
integral to understand that the short term options for the firms are as follows:
1. Blakely would be required to see to it that, she keeps coming up with new products and ideas
In order to ensure that Blakely does not get distracted and is able to proceed towards her goals, in
the short term, she needs to keep up with a zeal and come up with new products as well as the
ideas which will assist in engaging in successful associations and ensure that the firm is being able
to gain popularity in the long run (Perry and Hamm 2017). Through this, she will continue her
innovative ideas and be able to engage in considerate operations in an appropriate manner.
2. She can enter South East Asian countries as well.
Another initiative which can be undertaken by Sarah Blakely can be stated to be the expansion into
the South East Asian countries. These countries can be agreed to be the emerging markets and in
consideration with this, it can be effectively mentioned that, when the brand will be able to extend its
operations in the South east Asian countries in an appropriate manner then in such a scenario, the
firm will grow and will attain global domination.
In consideration to the long term options available, it can be mentioned that Blakely using the attribution
theory would be required to undertake the given steps:
1. Undertake diversification strategies
At present, the various diversification strategies which can be taken by the enterprise can be agreed
to be the expansion into other domains of woman clothing (Nisar and Yeung 2018). In
consideration with this, it can be essentially mentioned that as Sarah applied her business acumen
in looking out for the opportunity with the products currently Spandex, then in such a scenario, it
becomes considerably critical to state that, Sarah needs to undertake several decision which will
ensure adequate efficiency to the different operations of the firm and make the brand even more
popular in the market (Kryven et al. 2016).
2. Collaborate with the different parties
In addition to ensuring that she is being able to expand the different opportunities, it can be
essentially mentioned that, Sarah Blakely would be required to see to it that, if she gets into
associations and partnerships with the large brands which will help them in ensuring and attaining

considerate success.
Recommendations: Evaluate the advantages and disadvantages and select the best option or
combination of options for to be taken in the short-term and long-term.
Short-Term (immediate action):
In the short term, Blakely would be required to come up with adequate new ideas and opportunities which
would enable them to engage in considerate success (Martinko 2018). The advantage of this initiative will be
hat Blakely would be able to expand her business opportunity and ensure that she is successfully being able
to engage in a considerate strategy with the help of which the opportunities can be dealt with and the
competition can be combated against successfully (Baliga, de Mesquita and Wolitzky 2019). However,
another disadvantage of the strategy is that it would expose the brand to a considerate risk and in
association with this, it would be fairly essential for the enterprise to ensure that, adequate actions are
undertaken.
Entering into the South east Asian countries would give Sarah Blakely an opportunity to ensure that they will
be able to expand their countries of operations and engage in activities with the help of which, they will
successfully be able to ensure considerate operations accordingly (Hu et al. 2017). In line with this, it
becomes important to ensure that the enterprise is being able to plan accordingly and expand in the right
manner adequately. A disadvantage may be that the plan might not be successful.
The appropriate strategy would be entering into the South East Asian markets which would enable them to
expand their brand and thereby ensure success.
Long-Term (training, policy etc.):
In the long run Sarah Blakely would be required to ensure that they are being able to engage in considerate
operations accordingly. In line with this, it is effective to understand that, in the long run, Sarah Blakely as a
brand considering Spandex would be required to see to it that in addition to product development strategies,
if the enterprise engages in market development as well as diversification strategies, the firm will be able to
engage in effective operation. A disadvantage of the strategy can be agreed to be the fact that, the firm may
not have adequate initiatives to perform well and hence, may lose out on the considerate funds of the
enterprise (Amankwah-Amoah 2015).
Another strategy which is required to be undertaken can be stated to be the strategy associated with
partnering with the other enterprises and designers. In line with this, it is effective to mention that, this
strategy will enable the enterprise to see to it that they are being able to gain adequate strategies to ensure
long term success. A disadvantage of this strategy may be that the operations may not turn out to be fairly
adequate in nature.
The appropriate strategy which can be taken by the enterprise can be stated to be the diversification
strategy.

References
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