Stitch Fix: Revolutionizing Personalization with Data
(9 pages of text)
Case (Pub Mat)
Stitch Fix Inc. (Stich Fix), started by Katrina Lake in 2011, combined modern technology and online shopping with a retail clothing shopping experience. Customers subscribed to Stitch Fix and received boxes of clothing, shoes, and accessories based on individual style and preferences; a personal stylist was matched with each customer to personalize each box prior to shipping. A significant part of the company’s value came from its unique value chain elements, including sophisticated algorithms that permeated all aspects of the company’s value chain.
However, in early 2020, the company was facing a significant challenge, with both Amazon Prime Wardrobe and Nordstrom Trunk Club entering the industry. How should Stitch Fix modify its business model to stay ahead of the competition and possibly expand its boundaries to other customer segments?
This case is suitable for a capstone strategy course or an advanced elective in competitive strategy at the graduate level. It has been used by graduate students and executives (both in the United States and in Europe) in classes covering strategic management. After working through the case and assignment questions, students will have the opportunity to master the application of the customer, objective, activities, resources (COAR) methodology along with Porter’s five-forces analysis using a business model lens; specifically, students will have the opportunity to assess whether
- the online retail industry can be transformed using data analytics;
- Stitch Fix has developed a business model that can win in this industry; and
- Stitch Fix’s first-mover advantage is sustainable now that Amazon and Nordstrom, among others, have entered the industry.
United States, Medium, 2018
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