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Kelly Bossolt MartaKovorotna Sarah Smith

Kelly Bossolt MartaKovorotna Sarah Smith. Executive Summary:. Industry Overview Company History Financial Analysis Internal Analysis External Analysis Recommendations Questions. Industry Overview:. How big is the apparel retail industry? 2008: Grew 3% Valued at $1,025.9 Billion

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Kelly Bossolt MartaKovorotna Sarah Smith

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  1. Kelly Bossolt MartaKovorotna Sarah Smith

  2. Executive Summary: • Industry Overview • Company History • Financial Analysis • Internal Analysis • External Analysis • Recommendations • Questions

  3. Industry Overview: • How big is the apparel retail industry? • 2008: • Grew 3% • Valued at $1,025.9 Billion • 2013 • Said to increase by 15% • Consumers have power • Technology is crucial: • Maintenance and Inventory • Outsource vs. In house

  4. Company History: Growth in the early years • Leslie Wexner: • Founder • 1963: • $5,000=Birth of The Limited • Year One: • Exceeded goal to gross $100,000 by $62,000 • 1965: • Corporate headquarters • 100 employees • 1968: • Sales reach $1 million

  5. Company History: Growth in the early years • 1969: • IPO • 1978: • Purchased of Mast industries • Gained access to 150 production facilities • 1982: • NYSE • 1986: • Sales reach $3 billion • 1989: • Forbes rates The Limited Brands Inc. 1st in growth and profitability • 2003: • FOURTUNE : “World’s most admired specialty retailer”

  6. Financial Analysis: Industry and Competitor Comparison Pros: Cons: Strong P/E ratio Highly leveraged with $3.11 of debt to every dollar of equity. Industry average is $.31.

  7. Financial Analysis: 2010 • 90,000 associates • 2,600 stores in the U.S. • 5 brands • Record Sales of $9.6 Billion

  8. Internal Analysis: The Brands Indulge Inspire Empower Sexy Bold

  9. Internal Analysis: Resources • Quality • Reputation • Market Position • Store Locations • Technology • MAST

  10. Internal Analysis: Capabilities • Brand Equity • Lean Inventory • Inventory Turnover • Premium Prices • International market • Sourcing & Logistics

  11. Internal Analysis: Competitive Advantage • Brand Name • Technology • Consumer Market (NOT market share)

  12. Internal Analysis: Sustaining Competitive Advantage • Easy Imitation • Differentiation • Slow and Steady • 360 Degree Brand Potential

  13. External Analysis: Customers • Merchandise seasonal transition • New product lines • Top fashion • Higher prices • Unique items • Seasonal Sale • Slower economy • Frequent sales • Higher markdowns

  14. External Analysis: Complements • Victoria’s Secret & Pink • La Senza • Body and skin care products • Fragrances • Makeup • Bath & Body Works • Gift wraps • Accessories • Henry Bendel • Home fragrances and candles • Beauty and fragrance • Gift wraps

  15. External Analysis: Suppliers and Partners • More than 1,000 suppliers around the world • MAST • Supplier Diversity Program • Accel, Inc. • Tara Abraham • Millcraft Paper Company

  16. External Analysis: Suppliers and Partners • Business Council for Global Development • Trade, Aid and Security Coalition • Pacific Link • American Association of Textile Chemists and Colorists • Consumer Specialty Association • National Candle Association

  17. External Analysis: Suppliers and Partners • US EPA Climate Leaders, WasteWise, SmartWay • Forest Ethics • Recognition • 2005 EPA Gold Achievement Award • 2007 EPA Enviromental Excellence Award • 2011 1st place Team in Komen Race for Cure

  18. External Analysis: Substitutes and Competition • LVMH Moet Hennessy Louis Vuitton • Hanesbrands • American Eagle’s Aerie • Abercrombies’ Gilly Hicks • Gap

  19. External Analysis: Substitutes and Competition • Sephora • The Body Shop

  20. Recommendations: • International Growth • Reduce the Debt-to-Equity ratio • Sell More, Offer Less • Relationship Building

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