Market Conditions of the Limited Brand
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Limited Brands is a billion dollar company that encompasses the mens and womens clothing and accessories stores: Victorias Secret, Pink, Bath & Body Works, C. O. Bigelow, La Senza, White Barn Candle Co. and Henri Bendel brands. These products are available in over 2900 stores nationwide. The company also offers their customers the convenience of Victorias Secret Catalogue and online stores, such as www.victoriassecret.com, www.bathandbodyworks.com, www.henribendel.com, and www.lasenza.com. The La Senza brand is available in about 40 other countries, along with the websites and print catalogues push the company into the global market.
Leslie Wexner started the Limited Brand. In 1963, with $5,000 he borrowed from his aunt. Mr. Wexner opened his first store in Columbus, Ohio. The company had been family owned and operated until Wexner took Limited Brands public as LTD on the NYSE in 1969. LTD still operates in its main headquarters on Morse Road in Columbus, Ohio.
By initiating the acquisitions of Victorias Secret, Victorias Secret catalogue, Lane Bryant stores, a Henri Bendel store, 798 Lerner stores, and 25 Abercrombie & Fitch stores The Limited Brand has a tight grip on the apparel stores in shopping malls today. This strategy has helped LTD become a billion dollar company. All of these stores have a very strong product with a faithful customer base. LTD then developed the childrens store Limited Too, and Bath & Body Works which sells perfume, shower gels and lotions, Structure, which is a mens clothing line, and Victorias Secret Beauty. Some Bath & Body Works stores were reinvented into The White Barn Candle Company stores. This is LTDs official home fragrance brand. With careful planning and management skills LTD has a broad share in the market.
A poor economy may deter people from shopping at higher priced clothing stores. If LTD does not keep a company that it acquires under the umbrella of the LTD name long enough to be successful, shoppers may not know that it was a part of the LTD Brand and may lose customer bases.
LTD is a billion dollar company that can acquire other companies when they see the opportunity to do so. They have the time, talent, and experience to research business adventures. LTD has broadened their market to include beauty products and home fragrances.
Retail is very competitive. The cost of rent in malls rise each year. Fashion changes from season to season and is very hard to predict. Faithful designers are hard to find. Shipping, importing, and exporting costs may drive prices higher.
In summary, LTDs strengths definitely out way its weaknesses. By acquiring its competition, and competing against its self, LTD has developed a billion dollar global company. LTDs opportunities also out way its threats by being financially able to acquire its competition, plus the added advantage of website and catalogue sales.
Concentration on a single industry: LTD has focused on the apparel and accessory business since 1963. Even though the company has broadened their market and functional skills over the years, apparel and accessories are their main concentration. This