Bed Bath and Beyond vs. Linens'N Things

1098 Words Dec 13th, 2011 5 Pages
.Management theory & principles
November 20, 2011

Bed Bath & Beyond VS. Linens ‘n Things

The two companies I have chosen to research and dissect on why one has had great success and one has had great failure are Bed Bath and Beyond and Linens ‘n Things. When looking at both companies they seem to be similar to one another with the items they sell, the store layout and policies so why it that one failed and one is still standing. Managements job is to oversee others so their activities are completed efficiently and effectively. After looking into these two companies there seems to be some underlying reasons why. Linens ‘n Things was introduced in 1975 and has been providing high quality home textiles, housewares and
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Although they have significant similarities in the beginning setting, their performance results separate severely. On the surface, both companies were following a similar business-level strategy of cost leadership, but key strategic decisions led them down very different paths. Both companies focused on providing consumers with high-quality houseware goods in a no-frills, value-priced environment, but Linens n’ Things decision to build centralized warehouses that seemed consistent with a cost leadership strategy ended up bringing it into direct competition with Target and Walmart while as you know is a whole different ball game compared to, Bed Bath and Beyond which allowed for greater decentralization in decision making, which made allowing more store-level decision making and greater customization to local shoppers ' tastes. As a result, Bed Bath and Beyond was able to better tell itself apart from Walmart and Target. Bed Bath and Beyond’s market capitalization was approximately $10.7 billion, while there stores where open Linens n’ Things had just been acquired for $1.3 billion by a private equity firm. Linens ‘n Things has been losing money for years and finally had difficulty keeping up with payments to its lenders and vendors. Some strategies used by Linens n’ Things was a change to
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