Essay: Burt’s Bees’ Expansion

Sample Essay

  • If Burt’s Bees remained a manufacturer and direct seller, how could the company expand its product reach and close the gap between $6-$8 million and $25 million?

Being on the manufacturing side alone, the company should spend more on research and development, and monitor the whole supply chain from manufacturing to retailing. This helps the company to grasp a clear picture of market needs. Roxanne Quimby’s retail experiment was made to focus the same phenomena. If Burt’s Bees stays both as, manufacturer and direct seller, the competitive advantage would be much stronger than standing merely as a manufacturer. Customer contact, networks, proprietary protection all flourish if such integration takes place. This requires Burt’s Bees to think critically from consumers’ viewpoint and realize the impact of retailing on manufacturing as an error in one area may strongly hit the other.

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