Neiman Marcus Analysis - Case Study Example

The position statement of the case is that Harcourt General, the parent company of Neiman Marcus Group is on a goal of creating value for its business through the business excellence of the latter. Neiman Marcus Group is striving towards the development of concepts for new products (new concepts of retail chains) with the validation that new concepts will lead to the achievement of business goals inclusive of financial goals. Neiman Marcus (NM) has to decide upon the most appropriate business form for success which should not only depict a new image of the company but at the same time should also provide the Neiman Marcus feeling. NM needs also to decide on the business structures and locations along with consideration of the costs for developmental activities. The company is focused on department and speciality stores. For performance enhancement, there is a definite requirement for evaluating ways for improving results from these stores.

The position statement of the case induces the necessity for developing and implementing corporate strategies for growth both in the short-term as well as in the long term. Identification of competitors’ core areas of strength has led towards the urge for developing sustainable competitive strategies. Identification and implementation of various practices and developments are thus essential. The most effective decision for Neiman Marcus at this stage would be to generate and evaluate opportunities for expanding globally. Groups holding potential for effective merchandising in various parts of the world are required to be approached. Along with merchandizing, the company should also look for opportunities for leading joint venture businesses. Opportunities within the success of present businesses should be recognized. For example, the company did well in its shoe businesses (generating nearly 100 million Dollars). Global markets where the shoe business can succeed are further required to be explored. Joint venturing with competitors would be a successful move. For example, NM can jointly give rise to a successful joint venture by merging its trendy jewellery segment with Tiffany’s traditional jewellery segments.

The strength of Neiman Marcus lies in the department and speciality stores of its product lines. It should heavily focus on expanding its emerging business segments such as that of shoes through its specialized business forms. Finding large areas for store openings all over the world should be undertaken. Large areas with separate segments for men, women and children can be generated. Visual merchandising in various parts of the world is perhaps the best pathway that would lead the company towards the achievement of its long-term strategic goals. For enhancing performance, NM should undertake massive research on the tastes and preferences of consumers in the selected global markets. Through the research, NM would be in a position to target several segments of the market offering each segment with a wide range of products. The most important consideration would be, however, to strive towards finding out ways of offering the varied ranges of products under a single roof. On the other hand, the company should also analyze that the new business move gives rise to its financial performance enhancement as well. Thus, merchandising would provide an effective pathway for the enhancement of business performance. The action plan being provided within this segment of the case analysis would enhance the performance of the business and would also make them strive for sustainable growth opportunities. Read More