Ll Bean - Corporate Strategy

L L Bean: Corporate Strategy

L.L. Bean: Past Success

For many years, L.L. Bean has proven itself as an increasingly successful company relative to its core competitors within its outdoor clothing and recreation equipment industry. The success has driven the company to its current position as the "largest mail order company in the specialty outdoor business." Leon Leonwood Bean drove his company towards success and maintained this status through innovation and his progressive attitude within his community.

Throughout its history, various critical factors have contributed to the success of L.L. Bean. Leon Leonwood Bean created a strong corporate foundation which has been strategically expanded since his passing. Presently, the company has achieved strong brand equity with an identifiable and relatable heritage that helps retain and maintain existing and prospective customers. Success can be attributed to the company's core value, which is to treat each customer with respect. For this reason, the company has strived to maintain excellent customer service (i.e. fast and accurate), competitive prices and delivery time. These values have resulted in high customer loyalty and satisfaction, high employee morale, and an overall positive reputation as a provider of high quality products.

External or environmental factors have created great opportunities for the company, many of which were projected by and capitalized on through LL Bean's management team. For example, customer demographic and psychographic (e.g. more women in the workforce and rising age of population) have become major contributing factors to the success of mail-order sales (i.e. L.L. Bean's primary distribution channel).

Just as LL Bean treats its customers "as human beings," the company also values its employees and generates high morale through various strategies. For example, the working environment is "relaxed and congenial," employees are paid substantially above-average wages, receive attractive benefits, and face few barriers among ranks. Therefore, strong employee morale has had an immense impact on the financial profitability and overall positive image created and maintained by the company.

At present, L.L. Bean is experiencing alternate opportunities to achieve financial growth. From 1975 to 1980, the company's business quadrupled. If management can capitalize on these present opportunities, continued growth can be achieved. Internal challenges exist that can potentially limit the success of L.L. Bean's promising future. It is crucial that each option chosen and problem solved does not compromise the company's "customer first" legacy. In addition, there is future uncertainty within the company that must be resolved to ensure the security of investors, reputation, and the ultimate longevity of the company. For the next 10 to 15 years, uncertainty regarding future ownership will become an issue. Because there is no L.L. Bean family member available to participate, the company must consider the interest from "suiters" in buying out the company.

Avenues for Growth: Recommendations

Option #1: Mail-Order Option

As the company's specialty and largest source of income, L.L. Bean has acquired extensive knowledge in the mail-order distribution channel. These changes will require relatively less capital and enhance an already successful