Business Strategy

                                                         

                                                   Claire's Five Forces Model 

Five Forces	Rating	Explanation	Profitable
1. Threat of New Entrants	Medium	Fashion and accessory retail is easy to enter online, but Claire’s has strong brand recognition and established stores that offer ear piercing services.	Yes, if they stay unique
2. Bargaining Power of Suppliers	Low	Claire’s has many suppliers and strong purchasing power due to its size, allowing it to negotiate favorable terms.	Yes
3. Bargaining Power of Buyers	Medium	Customers have access to many low-cost accessory options online, but brand loyalty and in-store services reduce this power somewhat.	Yes
4.Threat Of Substitute Product or Services	High	Shoppers can easily buy similar jewelry or accessories from Amazon, Shein, or local shops. Claire’s must stand out with unique products and services.	Yes, with good branding and marketing
5. Rivalry Among Existing Competitors	High	The accessories market is crowded with many players. Claire’s competes on price, trendiness, and store experience.	Yes, if they stay competitive.

Claire's Profitability

The competitive strategy that Claire’s follows is that Claire’s is focused on cost leadership and differentiation for consumers in personalized products and services. By having this competitive strategy, it can address the threat of new entrants by being original with their products and standing itself out from competition. This can address the bargaining power of suppliers by leveraging purchasing power to negotiate better deals when purchasing brands with vendors. This competitive strategy can address the bargaining power of buyers by lowering prices and having an increased market share to make it harder for others to compare prices. It can address the threat of substitute products or services by having a unique value proposition in relation to Claire’s having its own unique products and creating brand loyalty to gain consumer value. Having this competitive strategy can address the rivalry among existing competitors by focusing on quality, having premium pricing, and scale efficiently to withstand competitive pressure and maintain profitability. Claires can be profitable if the company can stick to originality and improve customer engagement.

Business Processes

Claire’s gets a competitive edge through product and process initiatives that leverage its current information systems while also providing new additions to promote consumer engagement, loyalty, and efficiency.

 

Type	Implementation	Description	Competitive Advantage
Product	Claire’s Mobile App with Rewards Program (New IS Proposal)	Claire’s may create a specialized mobile app that includes tailored product suggestions, ear piercing appointment scheduling, and a rewards system that awards points for each purchase or social media interaction.	This boosts consumer loyalty while decreasing the danger of alternatives, as customers would forfeit earned points if they switched to another merchant. It also promotes distinction by providing a distinctive service experience.
Process	POS System Integrated with Inventory & Customer Data (Existing IS)	Claire’s POS system monitors sales, controls inventory and collects client purchase information. Integrating it with CRM technologies allows Claire’s to provide targeted offers and quickly refill high-demand goods.	This increases operational efficiency and the customer experience, hence promoting cost leadership and distinction. It addresses buyer power and competitive competitiveness by providing more personalized purchasing experiences.
Process	Social Media Marketing via TikTok & Instagram (Existing IS)	Claire’s constantly promotes its brand and new trends on sites such as TikTok and Instagram, where its target audience is strongly engaged.	This increases brand awareness, differentiates Claire’s from competitors, and provides for dynamic input from customers, allowing the firm to adjust to trends more swiftly.

 

To conclude, Claire’s may maintain a competitive edge by continuing to develop with technology, such as mobile applications, and connecting their POS and CRM systems. These tools make it more difficult for customers to switch, allowing Claire’s to maintain a competitive advantage via customization, loyalty, and efficient operations.

Information Systems

Claire’s uses various information systems to help the company handle difference processes smoothly. In Claire’s stores the sales process is supported with point of sales (POS) systems. These systems are used with customer shopping transactions to process their purchases. With these POS systems Claire’s ensures that their sales operations are efficient and done smoothly. For marketing, Claire’s uses social media platforms like Tiktok and Instagram to interact with customers, share and promote the content, and to receive feedback which helps them promote their products. In the HR department Claire’s uses collaboration information systems like Workday which helps with various HR functions like managing employee information, recruiting and performance evaluations. These information systems are important to support Claire’s business strategies by improving their efficiency and collaboration.