successful direct marketing companies in North

America, selling kitchen equipment

Founded around 40 years ago as a manufacturer of plastic kitchenware, it originally

sold its products through department stores.

Most of Hagen Style’s products were ‘value’

items of reasonable quality, with standard rather than innovative design.

Our main problem is that the operation was designed for

high volumes, but the direct marketing business using representatives is, in
general, on a slow
but steady decline.’

Direct selling using door-to-door representatives was increasingly regarded as an

old fashioned market channel.

The problem was,

‘how to distribute their products through these new channels? Should they modify
their existing fulfillment operation or subcontract the business to specialist
carriers?
And what would happen to their distribution centres?’

What is the recommendation to solve the main problem of the case?

Since the company must focus in timeliness and accuracy of order

fulfillment the Hagen Style must gather enough data about the distribution in the
operations. The researcher’s recommendation in the ‘Hagen Style’ would be
change its operation resources in a way that they need to identify
their capabilities and operation strategy decisions. Instead of sticking
into their old style they should develop new strategy and channels. In that way
they would be able to seek out new business opportunities. In addition,
since operational strategies will help their company in the long run it also
improve sales and reduce costs

Stick with existing services to existing customers through existing channels,

minimize any new business involving new channels.

https://www.studeersnel.nl/nl/document/rijksuniversiteit-groningen/operations-
strategy-and-technology/cases-answers-hagen-and-whic-chater-to-study-for-the-exam/
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