1. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approaches that Built Build-a-Bear is employing?

Build-a-Bear Workshop closely approximates by employing a Focused Differentiation Strategy which concentrating on a narrow buyer segment by meeting specific tastes and requirement of niche members.

A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments).

Successful use of a focused a differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm’s ability to stand apart from rivals competing in the same target market niche.

Build-a-Bear Workshop employs successful differentiation-based focused strategies targeted at upscale buyers wanting products and services with world-class attributes. Indeed, most markets contain a buyer segment willing to pay a big price premium for the very finest items available, thus opening the strategic window for some competitors to pursue differentiation-based focused strategies aimed at the very top of the market pyramid.

2. Critic the chosen strategy in terms of effectiveness, suitability and competitiveness for a company to succeed in a challenging global business environment.
Selling brand experience was not something new in the retail industry, but combining it with the teddy bear was a unique concept from Build-A-Bear Workshop. Nobody expected the small start-up selling customizable teddy bears and other stuffed animals to make any profits, let alone become one of the country’s fastest-growing retailers.
Maxine Clark managed to build a successful nationwide organization, focused on personalization and customer involvement. Although Build-A-Bear had performed impressively in the past, experts in the toy industry now questioned whether it could further innovate its product and bring more value to the customers. The company’s recent differentiation strategies focused on opening new Build-A-Bear Workshops in areas other than the traditional mall-based locations to compensate for slowdown in mall traffic. Build-A-Bear was also excited about launching a new Build-A-Bear Web site at which customers could bring their furry friends to life online and experience new adventures in a virtual world.
Clark created a custom-teddy-bear empire built with “heart” and was personally involved in setting the strategic agenda, building the organization and maintaining the strategic leadership. Her years of retailing experience paid off and gave Clark unique insights into creating her own successful concept for mall-based retailing. Weekly store visits and numerous e-mails provided Clark with valuable customer feedback that she put into practice to build a truly customer-centered organization.
Since the opening of the first store in 1996, Build-A-Bear Workshop capitalized on its unique experience and attracted a strong base of loyal customers. The company’s target market consisted mainly of families with children. Build-A-Bear also appealed to grandparents, aunts and uncles of children and to teen girls who occasionally brought along their boyfriends as well. The Build-A-Bear experience was also sought by child-centric organizations, such as scouting organizations and schools that were looking for interactive entertainment options of the type Build-A-Bear Workshop could provide.
The theme park environment stores operated as specialty retailers of plush animals and related products, as well as various clothing, shoes and accessories for the stuffed animals. Build-A-Bear Workshop stores generated very strong sales wherever they opened. The company differentiated itself from the competition with marketing initiatives that facilitated stronger connections with its customers.
Build-A-Bear Workshop provided a unique and exceptional approach to the entertainment retail industry. The company’s core concept was based on allowing its customers, uniquely termed “guests,” to make, personalize and customize stuffed animals of their choosing. The customization feature provided customers with more value than they would receive from mass-produced products. In addition, personalizing the product stimulated customers’ creativity and gave them a feeling of empowerment.
The Build-A-Bear Workshop atmosphere was based on a highly visual environment with the teddy bear theme carried throughout the store creating a fantasy land where stuffed animals came to life. Shopping at one of the Build-A-Bear’s colorful, brightly lit stores was one part consumption, ten parts entertainment and this entertainment factor provided Build-A-Bear Workshop with a competitive edge in the toy industry.
The culture at Build-A-Bear Workshop encouraged employee contribution and collaboration, and the resulting above-average employee retention rates at Build-A-Bear contributed to the quality of the guest experience, the building stone of the company’s differentiation. Maxine Clark recognized that Build-A-Bear’s success was largely dependent on the support of her employees, also known as associates.
Build-A-Bear Workshop provided a unique shopping experience, as customers created an emotional bond with the toy through the interactive process of bringing it to life. To emphasize the strength of its brand, Build-A-Bear Workshop instituted the Fur Stuff Club (a loyalty rewards program), as well as a bear identification system that aimed to unite children with their lost Build-A-Bear teddy bears.
Although Build-A-Bear Workshop's interactive experience was unique in the toy retail industry, this didn't make the competition any less intense. Kids changed their preference at a rate so fast that a phenomenon one year could be gone the next year. To compete with others in catching children’s new preferences and activity time, a specially retail store such as Build-A-Bear Workshop had to face competition from all different directions, including toy manufacturers like Wal-Mart, Toys “R” Us and others. Maxine Clark considered her competition to be every company that tried to attract the customer’s time and entertainment money. As products in the toy industry became more commoditized, many companies searched for new ways to differentiate their offerings beyond simply manufacturing and delivering the toys to the customers.
While providing unique experiences for the customers became an important competitive advantage in the toy industry, there were also other factors shaping the competitive environment that required attention. While the Internet had helped bolster the retail toy industry, it had also intensified competition dramatically.

a) Strategy in term of effectiveness for a company to succeed in a challenging global business environment.
The strategy in this company stay committed to serving the niche better than rivals; don’t blur the firm’s image by entering other market segments or adding other products to widen market appeal.
Build-a-Bear Workshop is a true example of how a small business can grow and prosper. They opened their first store at the Saint Louis Galleria in 1997. At that time they had just a handful of employees and a very small office location. But they had a business plan, strong initial success at the Saint Louis Galleria and many partners which who wanted to invest in their business and partners who could provide services to them.
Most small businesses need partners to help them fill in the gaps and support their growth. At Build-A-Bear Workshop not only found a wealth of support through partnerships, but also found these relationships to be long lasting.
Build-a-Bear Workshop began in big cities and when they got up to store 150, they started opening in smaller markets with good-size family communities and tourist destinations. In addition, they opened their first overseas store in Japan, and are now in 19 countries. Almost 40% of their store base is outside of the United States and they are putting the support and infrastructure in place to continue this expansion. They also see e-commerce as a growth opportunity on their website and through mobile technology.
Build-a-Bear Workshop will continue to grow internationally in their company-owned operations and through their franchisees; those already existing and by adding more countries.
Build-a-Bear Workshop has been in the forefront of international growth and to be a global company with stores worldwide, including company-owned stores. b) Strategy in term suitability for a company to succeed in a challenging global business environment.
The strategy in this company meets the custom made products that match the tastes and requirement of niche members. It communicates how product offering does the best job of meeting niche buyers’ expectations. The features and attributes tailored to the tastes and requirements of niche members.
Build-a-Bear Workshop started with just bears and clothes. Then, added shoes and accessories and more animals. Their licensed products and started carrying costumes from Disney and Major League Baseball teams. They hit a good nerve. At a time when everything was going high tech, high touch and hands-on was a good balance. They constantly creating new product and focus on good price, convenience and location.
Build-a-Bear Workshop makes their brand unique. It is difference with other products by offering an experience and a new best friend, not just a stuffed animal. They like to believe that Guests who visit Build-a-Bear Workshop stores are really getting their stuffed animals for free and are paying for the experience. Their highly visual and colorful stores, features a teddy bear theme, displays of numerous, fully-dressed stuffed animals and decorate the walls of their stores.
Build-a-Bear Workshop is the only company that offers an interactive makes their Guests own stuffed animal retail-entertainment experience. Their Guests are passionate about and feel ownership of their brand.
Clark has had the benefit of working with many very creative and smart people who have helped bring the idea of Build-a-Bear workshop to reality. c) Strategy in term competitiveness for a company to succeed in a challenging global business environment.
Clark reveals how she built Build-a-Bear Workshop, Inc. from the ground up, offering the tools needed to start, run, and market a company in today’s competitive environment.
Clark believes that the qualities that it takes to be successful are not based on gender. Having solid business relationships and being able to share ideas are great traits of business people.
Clark had the experience, know how, contacts and financial wherewithal to develop the business plan for Build-A-Bear Workshop. She had vast experience in product development, sourcing and marketing and these were exactly the skills she needed to start her company. Clark also had years of contacts with suppliers and people, many of which have become the backbone of their company.
Built Build-a-Bear started by internet which were able to track people in their loyalty program and continually do customer research. Everything is focused on the customers and giving them a good experience. This company wants to engage kids beyond selling them something in their store.
Build-a-Bear Workshop offers an experience rather than simply a product. They make a connection with our Guests that is lasting and contagious.
But Build-A-Bear has also struggled in recent years with sales and profitability. So Clark recently launched a turnaround strategy to reverse those trends by shuttering underperforming stores and unveiling a new store design that is being rolled out to dozens of stores nationwide.
Clark hit upon a winning combination she calls “high touch and hands-on. Other marketing factors like price, simplicity and convenient locations help keep that experience a positive one. A customer loyalty program supplies basic market information and the Build-a-Bear websites includes an award-winning virtual environment. 3. What action recommendations would you make to the top executives to strengthen the company’s growth and profitability?
The action recommendations would I make to the top executives to strengthen the company’s growth and profitability as follows:
Exposure the training, more skills and passion to build upon company’s strategies that resulted in strong sales performance and position the company for sustained profitable growth.
Take the employees seriously. Make a meeting every months among them to settle their problem. Employees can ask any questions they want. As a result, get good feedback and understand what matters to our associates. Then, do remote conferences with employees in the companies by Skype or others communication technology.
The ability to work well with other people in a group depends on our ability to appreciate other individuals' emotions. A boss who knows what his staff members really want and care about will be able to design a better team environment than one who is simply focused on the elements of a project.
A lack of social skills is behind some of the biggest challenges in organizations. Starting from the top, if leaders are not good at understanding others, they are likely to develop a strategy and expect everyone to get on board, without stopping to imagine how others may feel about that plan. Executives often expect that employees will follow orders and execute a strategy as planned without taking care about their benevolence.
The top executives must be trained to be able to challenge conventional thinking and think outside the box in all aspects of the business. Other than that, they must be able to learn from mistakes and move on - not all products are hits and it's important to keep pushing the envelope to come up with the newest and freshest merchandise.
Support an organization that will drive hard to make great ideas happen and turn them into sales by implementing through resourcefulness and tenacity. View challenges as opportunities to differentiate them from the crowd. Don't let outside forces limit their potential. Contribute to their community and help others.
Find their passion and get as much experience in the business world as they can, preferably in the field they are interested in. Ask questions, do whatever it takes to understand the workings of the business. As the result, the culture, leadership, employee’s satisfaction, knowledge, passion and their skills are determinants important in organizational performance to strengthen the company’s growth and profitability.