Analysis of The Limited, Inc.HistoryThe Limited, Inc. was founded by Leslie H. Wexner on August 10, 1963, starting with a store located in Columbus, Ohio. During its first year of business, this store brought in sales of $157,000. Its strategy was to provide a "limited" assortment of quality, fashionable sportswear at mid-range prices. The "limited" concept worked well, and in the late 1970s Wexner began a dual strategy of market development and product development. New stores have opened and have gained appeal to women of different ages, sizes and budget constraints. The Limited, Inc. comprises a unique family of brands. Since opening in 1963, the company has grown to more than 5,633 stores and 13 retail operations. Companies that fall under the umbrella of The Limited, Inc. are: Express, Lerner New York, Lane Bryant, Henri Bendel, Structure, Limited Too and Galyan's Trading Company. The Limited, Inc. also owns 83% of Intimate Brands, Inc., IBI, which includes Bath & Body Works and Victoria's Secret. Instead of offering a wide variety of clothing types, stores offer a limited assortment in large quantities and color varieties. The company emphasizes rapid inventory turnover so that only the newest fashions are always in stores. As of 1997, Limited, Inc. is a $9.2 billion specialty retailer selling apparel for women, men, and children; underwear; personal care products and sporting goods through its 5,633 stores and one catalog. Recent years have seen significant changes in business. In May 1998, The Limited, Inc. divested itself completely of its shares of Abercrombie & Fitch. They gave shareholders the chance to exchange their restricted shares for A&F shares in a process known as a modified Dutch offer. Today, The Limited, Inc. operates as four separate business groups: Women's Brands, Emerging Brands, Intimate Brands and Supporting Businesses. .Women's Brands:Express:Express was remodeled in the early 1990s to have a more sophisticated European image instead of the neon-lit high-tech store of the mid-1980s. The company now describes its Express stores as providing "hot new fashion for young women in their early twenties." The merchandise includes "young, vibrant fashion of good taste and quality." A private label created for Express is called Compagnie...... middle of paper ...... they are both involved in market penetration. The first strategy would be to create additional market share through innovative and stylish advertising. The next market penetration strategy would be to develop new and fresh advertising campaigns to compete with the new ads of the competition. The last suggested strategy would be that of future integration. This strategy would place Henri Bendel stores in larger cities. These five strategies emerged through the TOWS matrix. Evaluating Alternative Solutions All five suggested solutions are within the capabilities of The Limited, Inc., although some are significantly better than others. The cost of all these solutions would be very high, that's why the company can only benefit from some of these solutions. Financing these projects is the main problem. All these solutions would also require extensive research. This research would be involved in the initial stages of each of the suggested solutions. These are the two biggest costs of recommendations. In some solutions, the benefits outweigh the costs. Getting a large number of sales would actually fund the projects themselves. If the company can be.
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