Harvard Case - DressingRm AR
"DressingRm AR" Harvard business case study is written by Morela Hernandez, Kyle Blum. It deals with the challenges in the field of Organizational Behavior. The case study is 9 page(s) long and it was first published on : Apr 20, 2018
At Fern Fort University, we recommend that DressingRm AR implement a phased approach to launching their augmented reality (AR) technology in the retail market. This approach will prioritize user experience, build trust with retailers, and ensure a successful market entry. We propose a three-stage strategy:
- Phase 1: Pilot Program with Select Retailers: Focus on partnering with a small group of retailers to test the AR technology and gather valuable feedback.
- Phase 2: Expansion and Refinement: Based on the pilot program results, refine the technology and expand to a wider range of retailers, focusing on specific market segments.
- Phase 3: Full-Scale Launch and Marketing: Once the technology is proven and refined, launch a comprehensive marketing campaign to reach a wider audience and establish DressingRm AR as a leading innovator in the retail technology space.
2. Background
This case study focuses on DressingRm AR, a company developing augmented reality (AR) technology for the retail industry. Their technology allows customers to virtually 'try on' clothes using their smartphones, enhancing the online shopping experience. The company faces challenges in securing partnerships with retailers, convincing them of the technology's value, and navigating the complexities of the retail market.
The main protagonists are:
- Sarah: The CEO of DressingRm AR, driven by a vision to revolutionize online shopping and passionate about the potential of AR technology.
- David: The Chief Technology Officer (CTO), responsible for the technical development and implementation of the AR technology.
- Emily: The Head of Marketing, tasked with building brand awareness and attracting retailers to partner with DressingRm AR.
3. Analysis of the Case Study
This case study can be analyzed through the lens of organizational behavior, leadership, change management, and strategic management.
Organizational Behavior:
- Leadership Styles: Sarah exhibits a transformational leadership style, inspiring her team with her vision and passion for AR technology. However, her focus on the technology might overshadow the importance of building strong relationships with retailers.
- Team Dynamics: The company faces challenges in coordinating efforts between the technology team and the marketing team. This highlights the need for cross-functional management and effective communication to ensure a cohesive approach.
- Organizational Culture: DressingRm AR's culture is driven by innovation and a focus on technological advancement. However, this can lead to a lack of focus on customer needs and market realities.
Leadership:
- Power and Influence: Sarah needs to effectively leverage her power and influence to persuade retailers to adopt the AR technology. This requires understanding their needs, addressing their concerns, and demonstrating the technology's value proposition.
- Decision Making: The company needs to establish clear decision-making processes, involving key stakeholders from different departments. This will ensure that decisions are informed, aligned with the company's strategy, and effectively implemented.
Change Management:
- Resistance to Change: Retailers may be hesitant to adopt new technologies, especially those that require them to change their existing processes. DressingRm AR needs to effectively manage this resistance to change by providing clear benefits, training, and support.
- Organizational Learning: The company needs to establish a culture of organizational learning, constantly gathering feedback from retailers and users to refine the technology and adapt to changing market needs.
Strategic Management:
- Corporate Strategy: DressingRm AR needs to develop a clear corporate strategy that outlines its target market, value proposition, and competitive advantage. This strategy should be communicated effectively to all stakeholders.
- Growth Strategy: The company needs to develop a growth strategy that outlines its plans for expansion, market penetration, and long-term sustainability. This strategy should be aligned with the company's overall vision and goals.
4. Recommendations
To achieve successful market entry, DressingRm AR should implement the following recommendations:
Phase 1: Pilot Program with Select Retailers:
- Target Specific Retailers: Identify a small group of retailers with a strong online presence and a willingness to experiment with new technologies.
- Build Strong Partnerships: Develop close relationships with these retailers, understanding their needs and challenges.
- Gather Feedback: Conduct thorough testing and collect feedback from both retailers and customers to identify areas for improvement.
- Focus on User Experience: Prioritize the user experience, ensuring the AR technology is intuitive, engaging, and provides a seamless shopping experience.
Phase 2: Expansion and Refinement:
- Refine Technology: Based on the pilot program feedback, refine the AR technology to address any technical challenges or user experience issues.
- Expand to New Market Segments: Target specific market segments with high potential for AR adoption, such as fashion-conscious consumers or those seeking a more personalized shopping experience.
- Develop Marketing Materials: Create compelling marketing materials that highlight the benefits of the AR technology for both retailers and customers.
Phase 3: Full-Scale Launch and Marketing:
- Launch Marketing Campaign: Develop a comprehensive marketing campaign to reach a wider audience and promote the benefits of DressingRm AR's technology.
- Build Brand Awareness: Focus on building brand awareness and establishing DressingRm AR as a leading innovator in the retail technology space.
- Develop Partnerships: Seek strategic partnerships with other companies in the retail technology ecosystem to expand reach and enhance the value proposition.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The recommendations align with DressingRm AR's core competency in AR technology and its mission to revolutionize the online shopping experience.
- External Customers and Internal Clients: The recommendations prioritize the needs of both external customers (retailers and consumers) and internal clients (the DressingRm AR team).
- Competitors: The recommendations consider the competitive landscape and aim to differentiate DressingRm AR from its competitors by focusing on user experience and building strong partnerships with retailers.
- Attractiveness: The phased approach allows for gradual investment and risk mitigation, making the strategy more attractive from a financial perspective.
6. Conclusion
By implementing a phased approach, focusing on user experience, and building strong partnerships with retailers, DressingRm AR can successfully launch its AR technology and establish itself as a leader in the retail technology space. This strategy will allow the company to learn from its initial experiences, refine its technology, and adapt to the evolving needs of the retail market.
7. Discussion
Alternative Options:
- Full-Scale Launch: This option carries higher risk but could potentially lead to faster market penetration. However, without sufficient testing and feedback, it could result in a negative user experience and damage the company's reputation.
- Focus on a Single Market Segment: This option could allow for a more targeted approach but might limit the company's growth potential.
Risks and Key Assumptions:
- Retailer Adoption: The success of the strategy depends on retailer adoption of the AR technology.
- User Acceptance: The technology must be user-friendly and provide a positive experience for consumers.
- Competition: The retail technology market is becoming increasingly competitive, and DressingRm AR needs to stay ahead of the curve.
8. Next Steps
- Develop a Pilot Program: Identify potential pilot partners and develop a detailed plan for the pilot program.
- Secure Funding: Secure funding to support the development and implementation of the phased launch strategy.
- Build a Strong Team: Recruit and retain a talented team with expertise in AR technology, retail, and marketing.
- Monitor Progress: Continuously monitor progress and make adjustments as needed to ensure the success of the strategy.
By taking these steps, DressingRm AR can navigate the complexities of the retail market, build a strong foundation for growth, and establish itself as a leading innovator in the field of augmented reality.
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Case Description
After two years of constant work on their start-up, DressingRm AR, Natsumi Nakano and Bridget Ellery were at a crossroads. Two investment offers were on the table. Neither offer provided as much money as the start-up needed, and both came with constraints that made Nakano and Ellery wary. But they were running out of money, and without new investment, they'd have to shut down. Nakano still hoped that they'd eventually find an investor who appreciated the real value of their ideas and accurately perceived their competence. Ellery, meanwhile, was disillusioned after two years of unexpected obstacles. Their ideas were good, she knew, but the marketplace was uglier and more ruthless than she'd anticipated. She no longer believed that it was a meritocracy. If one more man spoke to her with a patronizing tone or hit on her during a meeting, Ellery feared she would snap. Together, they had to decide what to do.
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