Essay about The Corporate Information Management System for L.L.Bean

1674 Words Jun 27th, 2012 7 Pages
L.L.Bean is the industry leader in providing to its customers, outdoor equipment and apparel. With growing competition and a stagnant economy, the company must continually work to maintain sales, profits, and customer loyalty. L.L.Bean does this by focusing on the competitive forces prevailing throughout the business environment. These forces include new market entreats, the power of the buyer and the supplier, the growing threat of substitute products, and their competition.
L.L.Bean’s Competitive Forces
L.L.Bean works hard to reduce the threat of new entrants to the marketplace by erecting barriers to entry. L.L.Bean accomplishes this by offering products or services that are difficult to displace in the eyes of customers. L.L.Bean
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The Competitive Forces of L.L.Bean are fulfilled in the company’s logistical and order fulfillment capabilities. L.L.Bean has a 650,000 square foot warehouse that houses the infrastructure to expediently move its inventory of 4 million items from a 25 shipping dock facility, through a built in Federal Express distribution system. These attributes are the company’s critical source for competitive advantage, along with its incomparable customer service, increased productivity, enhanced flexibility, and improved quality-of-work life for Bean employees, and incorporating cutting edge technology for a strong business and IT strategy, the company has successfully initiated certain strategies to counter the competitive forces from Porter’s five forces model by using Porter’s four competitive strategies, basically focusing on differentiation, utilizing better product/service industry wide (L.L.Bean et al, 2010). Customers often have substantial power to affect the competitive environment. This power can take the form of easy consumer access to several retail outlets to purchase the same or similar products or services (Pearlson & Saunders et al., 2009). L.L.Bean has, from the beginning, recognized that the customer has many options in spending. This recognition of the power the customer holds is reflected in

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