The business I chose for the business canvas model
assignment is REI, a privately held retail cooperation selling outdoor
recreation gear, sporting goods and clothing through retail stores and online. The customers are mainly younger, more
affluent city dwellers active in physical outdoor activity. They seek both
reliable, high quality merchandise often for serious outdoor adventures, as
well as outdoor influenced fashionable apparel for city outings. REI is
basically is basically a ‘Brick-and-Mortar” retailer with an online storefront,
where both channels complement each other. The website is an extension of the
physical stores and is designed to provide the same personal assistance as the
actual stores with cross-links and customer reviews. Online orders can be
picked up or returned at stores. The
company delivers value through it’s merchandise offerings, membership benefits,
positive customer experience, outdoor school, adventure vacation offerings and
environmental as well as community initiatives which give the REI brand a
socially and environmentally conscious image that resonates well with the
target customer segment.
Net sales for the year 2012 were $1.9 billion, which
provided a net income of $29 million. The membership dividends accounted for
$89 million of the overall costs.
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