Zale’s Case Study
Zale’s is an organization that has shown significant increase and decreases over its lifetime. Zale’s is a specialty retail jewelry corporation that only focuses on the best of jewelry. A lot of Zale’s ups and downs have to do with the economic situation. When the economy is booming the jewelry is on the rise but, when the economy is struggling, jewelry is usually the first to be hit. In this case I think that Zale should try to reach out to some of the less fortunate folks. Zale’s operates stores in the U.S., Puerto Rico, and Canada. They employ approximately 16,900 employees in 2,394 of their stores.
Although Zale’s is the largest specialty retail corporation, they have suffered to maintain their dominance in the industry. There are several reasons why Zale’s is not leading their competition. One reason is because of their ...view middle of the document...
Along with the leadership problems Zale’s also have external and competitors to deal with. Externally the jewelry industry is gaining and sustaining market share, and is growing international competition. This can become a problem because most jewelry are created or come from international waters. This should encourage Zale’s to expand their company more across the globe. They should take a chance in the growing market to earn more revenue. Also when the economic situation is horrible jewelry takes a hit. A study has shown that more people would take synthetic diamonds or natural diamonds, only because of the bad economy and to reach consumers that are not able to spend an arm and a leg for jewelry.
Zale’s have 3 major competitors, which are Signets, Tiffany, and the Surging Blue Nile. With Signet leading in revenue at $3,403,500,000 they come second with its profit margins in at 11.20%. While Tiffany’s leads in profit margins with 15.20% with only 8,120 and 3rd in revenue at 2,395,000,000 right behind Zale’s at 2,439,000,000. While all the top competitors in specialty jewelry, Zale’s will have to expand their product line and service to continue to compete and have a chance to lead their competitors.
With Zale’s being in a tight competition, they are doing some good things such as supporting organizations that oppose the mining of dirty gold. Zale’s are primarily pursing a direct sale strategy, offering products throughout all segments from basic to fine jewelry. Strategy wise, I feel that Zale’s should reach out to more to customers in this time of economic struggles. While they sale fine jewelry, they should add low-moderate priced jewelry as well. I think that they should actually try to expanding more international and explore the growing market overseas. They should also continue to build a strong organizational structure because without a strong organization, the company will fall again. My final thought is that Zale’s is competing but must find ways to advance their corporation either by expanding globally or product line.