Martha Stewart's Case Analysis - Essay Example

The company’s stated market is ‘as big as everyone who has a house.’ The company is shown to have four segments which are divided into three platforms in order to leverage investments. There is the Omnimedia platform which is divided into publishing (focusing on the Martha Stewart Living (MSL) magazine, Martha Stewart Weddings as well as a selection of special interest magazines and books and a New York Times column) and television (focusing on the Martha Stewart Living television series, From Martha’s Kitchen, prime time specials and Christmas events).

There is also the OmniMerchandising platform (focusing on Martha Stewart branded lines ranging from the Martha Stewart Everyday line to the Martha Stewart Home line, distributed principally through Kmart and Sears respectively) and the Internet/Direct Commerce platform (focusing on Martha by Mail catalog and the marthastewart.com website). Stewart herself is the driving force behind the company, maintaining control over the company following privatization with 60% control of shares and 96% control of votes.

She maintains close relationships with her female dominated board of directors while her family also play an important role in the business. The root problem of the report is that it is difficult to assess the value and long term future of a company which is based around a personality. This is because the company could be seriously adversely affected by a change in public opinion with regards to Martha Stewart herself. This problem exists because the company has become a personality led brand.

It is therefore extremely difficult to predict how public opinion will react to the personality in the future if their perceived strengths are threatened. Examples in the case study include criticisms of Stewart as being difficult to work with, as setting unreasonably