Men’s Wearhouse Case Analysis

Men’s Wearhouse indeed is a declining industry. This is to mean that it is an industry whereby the ordinary firm existing is hardly struggling to survive. Just to recap, it is an industry that manages to succeed despite being in a competitive environment. One key contributing factor to this is the limited market available (Pfeffer, Stanford University, & Graduate School of Business, 1997). In reality, people tend to spend little money on men-tailored clothing industry. As a result, several independent stores are forced to merge. Moreover, the competition among the rivaling companies is exceedingly high therefore making it hard for the stores to achieve any consistent growth. Men’s Wearhouse has grown succeeding ever since their inception in 1973 (Pfeffer et al., 1997). Albeit its market shares dominance and rapid growth, they have encounter challenges such as competition from big and have not only been surviving but also keep being successful despite the steep competition they face. Therefore, this is an in-depth analysis of how Men’s Wearhouse industry manages to succeed in a declining industry despite the steep competition.

This industry has been declining majorly due to the competitive environment they are in. Large and financially stable companies have given a hostile competition to the small firms. Moreover, job opportunities in this industry have always been undermined since it is characterized by low pay and unfavorable working conditions and environment. There is minimal healthcare cover for the employees in this industry and as well an unbalanced ratio between skilled and non-skilled employees.  Additionally, the industry’s turnover tends to be pervasive as the percentage of part-time employees is very high. For instance, real wages pertaining to retail trade decreased from 91% to 62% out of the nation’s average as from 1948 to 1992 (Pfeffer et al., 1997). The employees are not been provided with a suitable environment to work efficiently in this industry. For instance, workers are congested when working due to insufficient space or they work in limited space not enough to enable them to work productively. Therefore, all these have been the contributing factors that have caused this industry to decline.

We use value chain analysis to precisely center on marketing, services, and sales as the primary activities while considering human resource management as the secondary issue for assisting activities:

  • Being a fashion industry, it is a requirement for the Men’s Wearhouse to have robust marketing skills in order to sustain the competency of its products.
  • Excellent services result in good sales, the more professional marketers the Men’s Wearhouse have the more sales they make.
  • Proper and organized human resource management system ensures staff expertise and optimum employee commitment.

With regards to this value chain analysis, it is certain that being a fashion firm, the latest trending style, and the employee expertise facilitates leveraging sales (Pfeffer et al., 1997). Thus, failing to encourage employees to enroll in management courses and eventually promoting them from within the firm declines the advancement of its employees. This finding suggests that the human resource management requires further evaluation and restructuring.

As per the value chain, Men’s Wearhouse is successful in their marketing, sales, and service, including human resource management. George Zimmerman always emphasized the significance of proper training programs which results in an eventual increase in customer satisfaction. Getting to understand their target market enables them to be effectual in their skills and as well provide them with a higher probability of attracting their customer’s attention. Additionally, Men’s Wearhouse mandates the store managers to be in charge of recruiting salespeople. Success originated from good management through provision of extra power which eventually results in improved work performance.

RBV analysis is used to determine the significant value-creating activities for that contribute to the success of Men’s Wearhouse.

  • Offering a good incentive program improve employee performance.
  • Zimmerman visits motivate their employees thus improve their productivity.
  • Their reputable brand loyalty helps them in marketing and improving the sales of their products.

As per RBV analysis, Men’s Wearhouse prospers on their administrative abilities and accrues valuable benefits to the company. They have a strategic way of motivating their salespersons and as well as sustain customer satisfaction. Zimmerman’s frequent visits to the stores across the nation are one of the ways. It facilitates employees with feeling appreciated and valued in their workplace. A good incentive program is in place to facilitate encouragement for the company’s salespersons which results in excellent services provision. The firm has a reputable brand loyalty which helps them in marketing and improving sales of their products while maintaining existing customers and attracting new ones too. Moreover, the company has several current senior managers that have been in the company since the inception. With time, a mutual relation has been established which customers trust.

Recommendations that Men’s Wearhouse should look into in order to improve their performance further include:

  • Men’s Wearhouse should determine a more effective method of redistributing wages to the assistant managers. As a matter of fact, these managers’ earnings are comparatively less than for the sales consultants. Like as it was mentioned earlier, success begins with proficient managing yet the wages for this position keeps away several qualified individuals.
  • To change the attitude of focusing on taking from others as was implied by Zimmerman. Market experience variance from decade to decade, therefore, Men’s Wearhouse needs to take into consideration this to be an opportunity to gain from. They should identify a new strategy of marketing which is targeted at establishing new customers which would assist in slowing down the deterioration of their industry.
  • They should ensure that they look into the sales employees’ weaknesses and find immediate solutions to them. Zimmerman asserted that several salespeople not productive enough. This has caused the limitation of the entire performance of the firm. The management should take action to change their training strategies so as to improve employee productivity, especially for the new sales recruits.