Build-a-bear Essay Example

such gifts.
- Producing these personalized animals incurs higher production costs compared to regular teddy bears.
- Constant updates are required for clothing and accessory offerings to keep up with current fashion trends.

3. A retailer's overall strategy can be significantly influenced by external environmental factors, including the economy, which could either positively or negatively impact Build-A-Bear.Positive aspect of expanding into other countries, particularly undeveloped or emerging economies such as the BRIC nations, is that it allows the company to take advantage of rapid growth and favorable conditions for franchise management.

Build-A-Bear's growth and sales could be hindered by factors such as an economic crisis or recession, which would require the company to adjust its expansion strategy. Additionally, advancements in technology may surpass the capabilities of Build-A-Bear's current manufacturing machines for creating stuffed animals. To enhance the customer experience, Build-A-Bear can incorporate these technological changes into their stores. Furthermore, if another company recognizes the profitability of this retail format, they might establish a similar business and directly compete within the target segment. In such a scenario, franchisees have the option to terminate their contractual agreements and operate their own retail companies while focusing on the same primary target market and offering additional services. Ultimately, this could result in a significant decline in Build-A-Bear's market share.

The ever-changing social trends in fashion can affect the company's economies of scale as accessories and clothing items sold in their store may become outdated quickly. Regarding Question 1, evaluate the strengths and weaknesses of the Build-a-Bear website (http://www.buildabear.ca/) from the standpoint of families with children.

Strengths:

• Convenient option for parents with limited time for shopping at the mall.
• Interactive games and activities promote
  

child engagement and learning on the website.

Weaknesses:

• Limited computer literacy among children poses a challenge for the company to reach its primary target audience.
• Shopping on the website relies on parents making purchases with credit cards, not giving children autonomy.
• Child's experience may not align with their desires, but offers parents an affordable purchasing alternative.

Strengths with Teenagers:

• The company's website serves as the first point of contact for teenagers who often browse online before visiting stores.
• Promotions seen on the website allow teenagers to plan store visits at their convenience.

Weaknesses with Teenagers:

• Lack of credit card ownership among teenagers prevents them from making online purchases.

The website is aimed towards children and teenagers who may find it too childish and lacking activities for teenagers. It is also overcrowded, making it difficult to navigate. One way Build-A-Bear could generate repeat visits to the store is by implementing better games on their virtual website. Additionally, they could create a specific social network for children to personalize their bears just like in real life. By combining both game and social network features, such as including Bearemy Bear as a host in a virtual Build-a-Bear game similar to "Pet Society", children can interact with friends while playing. By offering this free game on the website, children can earn rewards or discount coupons as they advance levels or refer the game to other friends. These rewards can then be exchanged at the physical store. This strategy would encourage children to ask their parents to visit the mall and purchase new bears and accessories from the

Build-A-Bear Store.By establishing this innovative platform, they have the ability to offer a fresh virtual encounter, enhancing customer experiences, increasing sales, and amplifying the services provided in their physical store.

• One alternative approach would be to provide more officially licensed sports logos for teams and other sports, or create new bears that are associated with teenage celebrities. Additionally, scheduling autograph signings in stores could lead to an increase in visits and generate more sales. Similar tactics have proven successful with the likes of Victoria Justice and the Jonas Brothers, resulting in increased store traffic. Another option is to establish partnerships with entertainment distributors, studios, or agencies to offer exclusive movie or concert tickets to families who purchase a bear or accessories from the store.
• Alternatively, offering a babysitting service within the store would allow parents to shop at other stores while their children play with bears. This would cultivate a desire in children to acquire their own teddy bear, and when parents return, they may be more likely to fulfill their child's request. This strategy serves as a way to educate future Build-a-Bear customers about the products available both online and in-store.