The Children's Place, Inc.: Challenges in a Post-Rana Plaza World
(8 pages of text)
The Children’s Place was a New Jersey-based specialty retailer of apparel and accessories for children up to age 12. Starting in fiscal 2013, the company was moving from a clearance-centre model, where it sold a variety of national brands, to a made-for-outlet model that emphasized its own brands. This was necessitated by intense price competition in its market. The new strategy involved developing, coordinating and controlling its own global apparel value chain. When the Rana Plaza building in Dhaka, Bangladesh collapsed on April 24, 2013, killing and injuring a large number of workers, products destined for The Children’s Place were found in the debris. The adverse publicity that ensued meant that the company’s top management had to re-evaluate its strategy. What should be their response?
The case is suitable for both upper level undergraduate and MBA strategy courses. Its specific learning objectives are:
- To examine the responsibilities of domestic players in a global industry.
- To evaluate the role of competitive positioning in the context of a company’s social responsibilities.
- To look at the importance of transparency in a company’s activities.
- To examine the trade-offs that occur frequently in competitive positioning.
United States, Large, 2014
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