CASE ANALYSIS : ARON Essay

1807 Words Oct 9th, 2013 8 Pages
Socratix Case Study 2

The questions asked are:
1. What is your Strategy & action Plan for geographic expansion for Aaron’s within the U.S?
2. A) Should Aaron expand internationally?
b) if Aaron was to go for international expansion, what are the key things they must keep in mind or do?
3. Could rent-to-own work for goods beyond basic durable household items? Should Aaron offer additional products and service offerings/
4. In terms of growth, Loudermilk (CEO) viewed managerial talent as Aaron’s primary constraint. How they address this issue?

To analyze the questions asked and give logical and effective answers it is important to first understand the Rent-to-Own industry per say as well as find out what are the Strength and
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Cleanliness of Stores top priority

Income bracket reducing due to unemployment status increase which will further give boost to the Industry.
Regressive Cross Subsidy
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Brand Name “ Aaron Sales and Lease Ownership”

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Own manufacturer of furniture which gives it a cost advantage

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Flexibility in Payment Options and Fair collection Practices than Competitors

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Success parameter metric of a store consists of ‘Customer Count’

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Timely Delivery, Pick up and maintenance

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Aaron’s own ‘E-University’

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10 % projected growth rate till 2015

Pestle Analysis: Political + Economical + Social + Legal + Technological + Environmental
Political: The political Analysis of Aaron’s Business has been categorized into two main segments one being inside U.S. and one being International Market
Inside U.S.:
1. Criticism from Congressmen stating Nature of Industry is predatory as it targets weaker sections of economies which pay higher rates of interest for products than regular retail credit sales.
2. Regulatory uncertainty in U.S. as a federal law has still not been enacted to regulate the industry which may classify the business as credit sales thereby regulating and capping the rate of interest levied with that of retail credit sales thereby killing the industry.
3. Each state has its own regulations and law framed for rent to own

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