HARTMAN LUGGAGE COMPANY CASE

CASE ANALYSIS: HARTMAN LUGGAGE COMPANY (HARVARD BUSINESS SCHOOL 9577064, 1976)I. Analysis of External Situation.

Hartman's customers are primarily in the uppermiddle and high income brackets. At the time frame of the case, the target segment was neither growing nor shrinking. Many of Hartman's customers, at the time frame of the case were also those who were fashion conscious to the extent that they were willing to buy new luggage to remain in fashion. The fact that Hartman's growth exceeded that of the luggage industry while the company's target segment was neither growing nor shrinking was an indication that the number of the company's customers who were responding to fashion motivations was increasing.

In the luggage industry as a whole, the market leaders at the time frame of the case were Samsonite and American Tourister. Hartman's primary competition in the high quality and fashion segment of the industry, however, was French and Lark. French and Lark has a market share about onefifth the size of that of Hartman, while Hartman's market share was only onetenth that of the industry leader, Samsonite, and onefourth that of American Tourister, the number two firm in the industry.

The luggage industry, defined according to industry as opposed to governmental guidelines, was flat to declining. In real terms, the industry projected growth over the 1976198

Related Essays

Women and Murder in the Victorian Era Mary S. Hartman's trenchant 1976 sociological study of women who were tried for murder in the Victorian era fostered something of an academic cottage industry .... (1969 8 )

Internet Development .... According to Hartman and Sifonis (1), the Internet or new economy demonstrates that four main factors influence the development of the Internet: leadership .... (525 2 )

A Middle School Recreation Program According to .... from investments, grants-in-aid, revenue from the state on behalf of the school district, federal grants, and sale of unneeded assets (Hartman, 1988, 67). .... (1241 5 )

Anorexia Nervosa As A Mental Health Problem .... Hartman (1995) held that the preferred approach to the treatment of anorexia nervosa is individual therapy. .... Hartman, D. (1996, June). .... (1412 6 )

The Work of Naguib Mahfouz Naguib As Michelle Hartman (1997) pointed out in her analysis of one of Mahfouz's novels, al-Liss wa'l kilub (The Thief and the Dog), this Egyptian writer's fame and .... (2470 10 )

re and lower prices would cause some of the company's existing snobbish customers to turn away from the product. II. Analysis of Internal Situation. A. Performance. Over the five year period preceding the time frame of the case, Hartman recorded an annual sales growth rate approximating 30 percent, with an after tax return approximating 10 percent. This performance was outstanding in any context. B. Marketing. Hartman concentrated its advertising in print media with a high level of upperincome readers. Hartman did not participate in cooperative advertising. Similarly, the company distributed its products through highquality fashionoriented department stores, and high quality luggage specialty shops. The company's products were distributed through a total of approximately 1,800 retail outlets, with department stores accounting for approximately threequarters of the total sales volume. C. Competitive Advantage. Hartman's competitive advantage lies primarily in its quality image. The fashion image of the company's "Halston ultrasuede" line also provides a competitive advantage, and this fashion image could increase in importance over the decade following the case time frame. D. Strengt

Category: Business - H