Kitty

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BCG’s Own Strategy
Kitty
Last modified on December 2, 2015 at 1:05 am
The Boston Consulting Group is a leading global management consulting firm providing strategic advice to private, public, and non-profit sectors worldwide. Although not unique within the consulting industry, BCG provides a great example of a company that is highly effective at [...]

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On December 2, 2015, Kitty commented on Trader Joe’s – Alignment Under Secrecy :

Very intriguing points about choice overload and private label strategy! I had always thought that consumers unambiguously prefer stores with more SKUs and never considered the possibility that too many choices can lead to inaction! The perception that the one SKU that TJ offers must be the highest quality product that TJ has carefully selected for its customers sounds even more enlightening! I think such perception is created by TJ’s private label strategy to a large extent. If their limited SKU selection consists primarily of branded products that can be easily found elsewhere, consumers wouldn’t perceive them as the best choices. It is really the private label strategy that allows TJ to achieve the perception of high quality with a small SKU portfolio.

On December 2, 2015, Kitty commented on Trunk Club – Helping Men Where They Need It Most :

Great post, Matthew! You’ve identified some very important advantages about TC’s business and operating model. I would also say that TC has actually been very smart in designing their business model, specifically in choosing their target customers. I suspect a big challenge for fashion retail companies is managing the number of SKUs and the resulting inventory. Given the unpredictable and fast-changing nature of fashion, it’s generally hard to predict demand and stock up proper levels of inventory in advance. TC has mitigated such problems for itself by focusing on working men, which significantly narrows down the range of SKUs they need and enhances their demand forecasting ability. This in turn gives them an edge in sourcing and managing inventory.

On December 2, 2015, Kitty commented on The Weather Company: Affecting Everyone’s Lives and Making No Money :

I really enjoyed reading your post, Shimon! You’ve proposed very interesting solutions to help TWC monetize their capabilities. However, I wonder if its current operating model is determined by the fact that weather information is generally considered as a public good and my speculation that there would therefore be some kind of regulation on how much weather companies can charge for their data. Theoretically, given the demand for a reliable, authority source of weather information, I would expect TWC to be in an oligopoly or even monopoly market, which should give it huge pricing power when signing contracts with the many more media companies. I would be surprised that TWC chooses not to take advantage of this power if they don’t face any regulatory restrictions on doing so.