The Hudson Bay Company.docx

Strategic positioning a key issue that is evident

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Strategic Positioning A key issue that is evident from the case study of HBC is on strategic positioning of the company. Strategic positioning deals with the manner in which a business as a whole distinguishes itself in a valuable way from its competitors to ensure that it delivers value to it customers. From the case study analysis, it can be observed that the Hudson Bay Company has always been strategically positioned to ensure creation of value to its customers. Among the first element that indicates the company’s strategic positioning was the trading posts, of which the company maintained a monopoly of operating. The HBC are noted to have established harmonious relationship with the indigenous people, and this offered the company a linkage for moving their European Good to their trading partners deeper in the inland. The company later realized the need of being located closer to its suppliers and as a result established inland trading posts. The Hudson Bay Company has been noted to have had control of important assets that raised the company’s value, among them forty-five thousand acres of land around its posts. The
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CASE STUDY ANALYSIS 4 company kept subsurface mineral rights of the land it sold in the Western province. Another element of strategic positioning by HBC is evident in 1910 when the company underwent restructuring leading to formation of three departments; land sales, retailing, and fur trading which allowed the company diversified trading opportunities with different risks and uncertainties. The company is noted have positioned itself strategically in the expansion of its retail business through creation of a modern store that had five acres of retail space. The company is seen to have further aligned itself strategically to make supplies to Allies during the world war II. The company can be noted to be still holding valuable real estates that increases its net worth. Business Restructuring Another issue of concern that emerges from the case study is on importance of Business restructuring. Hudson Bay Company has been seen to undergo a series of metamorphisms with regard to its structure, form, and ownership. Restructuring refers to the reorganization in the legal, ownership and, operational and other structures of a company with an aim of enhancing the profit levels, and ensuring better organization of the business. While initially engaged in trading of European goods, the HBC underwent a restructuring that allowed it engage in the production of point blanket which became its trademark. The company underwent restructuring in 1910 leading to the formation of three departments; land sales, retailing, and fur trading. This diversification saw the company navigate the loss of business in land and fur departments and focused its investments into the retail department, with which it still holds muscle in the market.
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  • Fall '11
  • dan
  • Hudson's Bay Company, The Hudson Bay Company

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