1. What internal resources and assets did ANN have that gave it a competitive advantage?
Ann Taylor’s competitive advantage is constituted by its cash availability, it’s loft and brand recognition. It’s internal resources are in house design team, in-store strategy which provides wardrobing and cater to every customer. Ann also has strong bargaining power because of its brand image and quality of feelings. The company focuses on providing quality clothing with a complete product line by targeting socially upscale professional women. It also providing low priced casual merchandise through Loft division. Ann taylor’s internal resources are very essential elements for providing a competitive strength, It’s own in house design team brings creative designs as per the targeted customers class, tastes and preference, these customers are provided with all kind of wardrobing and catering so that they remain loyal to the brand.
2. How did ANN compete?
Ann compete with all its core capabilities and internal resource asset to sustain in an ever changing economy, it provided a wide range of merchandize with a great quality and style, with in house designing and styling team enhanced customers experience. Ann had experienced significant growth but success had been very uneven between the original Ann Taylor stores division, which sold updated classics and company’s newer Ann Taylor LOFT division that offered lower priced casual merchandize.
3. What has Kay Krill done to implement strategy, and what challenges remain?
Kay krill implemented variety of initiatives and identified several distinct areas of opportunities to generate growth. She continued efforts to revitalize Ann taylor store brand, and also considered encouragement of LOFT’s growth. She launched a beauty business, tested a maternity section, expanded high end fashion offerings and considered a new concept store targeting older segment of women aging 55 to 64 years. She announced a restructuring plan when brand witnessed a downturn in sales in 2008, by reducing overall cost-structure, this involved layoff of headquarters staff, reconfiguring of executive performance compensation bonus and involved herself in day to day activities.