Men’s Wearhouse Case Study


Meaning of a Declining Industry

The retail business in men’s clothing is a declining industrybecause it has no barrier to new entrants. It is for this reason thatthe industry is laden with numerous competitors who have similarproducts to those of Men’s Wearhouse. The homogeneity in theproducts has left the not-so-loyal customers up for grabs for any newentrant who might please them. The notion that men do not likeshopping is also changing by the day. The implication of thisdevelopment is that most of the businesses that were based on theconcept are slowly declining. So is the men’s clothing industry.

Value Chain Analysis

Men’s Wearhouse uses the help of consultants to create more valuein its products. Clients are at liberty to ask the consultantanything before they can make up their mind on what to purchase. Theconsultant will advise on the appropriate design and colors. Thisapproach attracts more customers, especially those who are often notso sure about what they should buy.

Emphasis on creating an emotional connection with clients alsoincreases the value of the products. As part of the training, thesalesperson needs to interact with the potential client at a personallevel. Many people will be willing to visit a shop that has friendlysalespeople rather than one with cold salespeople whose only aim isto make the sale.

Reduction in the price of most commodities puts the icing on thecake. Unlike department stores, Men’s Wearhouse has pricereductions of up to 20%. In order to achieve this form of valuecreation, the company convinces suppliers to sell it goods at acheaper price with the promise that it will not reveal the secret toany third party.

Resource Based View Analysis

The company’s organizational culture meets the four criteria for apotential competitive advantage. The culture of training employeesregarding new sales methods is valuable because it makes them moreskillful than those of competitors. The organization culture thereinis rare because not so many retail stores uphold a culture that putsthe employees above the customers. According to Men’s Wearhouse, abusiness that values its customers will make its employees a toppriority. When employees feel valued, they are bound to attaincapabilities that have never been experienced before. In addition,the entire organization culture is not imitable because it is complexand it has taken a lot of years to build.


Advertising the low prices in the local media will boost theperformance of the company. When it comes to men’s clothing, theprice is paramount the rest of the details such as design and howfashionable the cloth is will be second. Advertising this feature inseveral media that target men-especially sports channels will be agood publicity venture.

Being non-biased in the kind of men’s wear that is on offer willwiden the scope of the business. Currently, the company seems to bemore interested in formal men’s clothing such as suits. The growingworking class means that there will be more demand for casualclothing by men working in blue-collar jobs.

Using aesthetically appealing female sales people could help to boostsales. Although the idea is sexist, it still remains a fact that menare visual creatures. It will take a gorgeous woman far less time totalk a man into buying something that he may not need.