BurlingtonCoatFactory.com is Discount coat retailer

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BurlingtonCoatFactory.com

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Founded in 1924, the company was known as "Burlington Coat Factory Warehouse Corporation" that started by selling outerwear and ladies coats. Burlington Coat Factory aims for sustainable growth as a broad market leader in clothing and shoes production as well as for segment leadership. In both cases, the Burlington Coat Factory brands will play a crucial part. Burlington Coat Factory is able to establish its broad leadership usually by acquiring other strong clothing and shoe companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Burlington Coat Factory products.

This practically results in economies of scale that is able to create a distribution network for both the local and international Burlington Coat Factory products. If a market is already in the control of other clothing and shoe companies, Burlington Coat Factory devotes its attention towards the development of a premium segment with its various products.

The mission of Burlington Coat Factory is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements:

Striving in order to reach a leading position in attractive markets
Focusing on securing a competitive share of the mobile computing market segments.
Working in order to improve the company’s efficiency and cut costs in operations.
Continuous growth through selective acquisitions for as long as they are able to create shareholder value.

Burlington Coat Factory’s generic strategy in the clothing and shoes market changed for the better at the start of the new millennium and began pursuing product differentiation. True enough, the differentiated Burlington Coat Factory products were able to satisfy the needs of customers through a sustainable competitive advantage. This allowed Burlington Coat Factory to desensitize the prices of their products and instead focused on the values that generated not only a comparatively higher price but also a better margin.

The subscription business model has been widely used by Burlington Coat Factory since the year 2001, but the application of this model has started to spread up to this time. Instead of selling the products directly, Burlington Coat Factory nowadays is doing the process of selling their monthly or yearly access to clothing and shoe products. As a result, the company is able to convert a one-time sale of a product into a recurring sale of a service.

Burlington Coat Factory benefits from this strategy because of the fact that they are guaranteed of a constant revenue stream. This significantly reduces the uncertainty and the risk-taking of Burlington Coat Factory. Also, most of the time, the subscription pricing structure is carefully designed in order to make sure that the revenue stream from the recurring subscriptions could be significantly higher than the revenue coming from simple one-time purchases. In most subscription schemes, it also induces the increase of Burlington Coat Factory’s sales through disallowing the subscriber’s option to either accept or reject any specific product. This triggers the reduction of customer acquisition costs, and allows the implementation of a personalized marketing or database marketing. However, subscription business models also have their disadvantages. Burlington Coat Factory still needs to invest to a large infrastructure in order to help in the management and monitoring of subscriptions.