Restoration Hardware Case Study
As a largely integrated firm that handles its own design, manufacturer, marketing and sales, and that even procures many of its own supplies in a direct manner, the value chain at Restoration Hardware is very efficient and well-supported. It is responding to competitive forces by creating a strong brand identity and exploiting a market niche that is relatively uncompetitive.
Restoration Hardware's business strategy is highly product- and design-focused, and depends upon their ability to assess trends in consumer desires and quickly meet these changes with new products and designs. The communications and information systems within the company are not especially effective at connecting all necessary departments.
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There are a variety of issues that the company is facing, including issues creating a meeting of the minds between management and design teams. In this way, the organization has not been well integrated, with design teams largely isolated from executive and administrative concerns. Technology has also enabled competitors to produce ever-cheaper products to go against Restoration Hardware's in the market.
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Supply chain management is of vital importance to the company's success, as the affordability and availability of necessary manufacturing supplies dictates design elements and the cost of production much more for this company than for many of its competitors. This is one of the downsides to the unique aesthetic that defines the company.
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The risks of a software development plan to improve the communications structure include an even great degradation of current communications, as well as the expense of the development with the distinct possibility that the new system will not create the desired improvements. In order to control these risks, frequent reviews of progress and potential changes to trajectory would be needed.
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The management and development of a software system would require numerous steps, beginning with identifying the specific communications needs that the system would need to meet, and ensuring that these needs are being adequately and efficiently met throughout the design and implementation phases of the project would also be necessary. Ongoing evaluation following implementation would ensure the system continually improved and changed along with communication needs.
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For the next development project, the strategy that would be recommended is a more integrated and small-team approach, allowing for detailed examination of issues to take place and be shared amongst team members without the complications and delays that occur when large and/or less focused teams are expected to deliver the same results, This strategy also enables for faster responses to evaluations of the system, enhancing performance and increasing utility.
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