Business Case Studies, Growth Strategies Case Study, Forever 21’s Acquisition of Gadzooks

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Case Title:

Forever 21’s acquisition of Gadzooks: Will it be an engine for growth?

Publication Year : 2006

Authors: Chandrasekhar

Industry: Internet and e-commerce

Region:US

Case Code: GRS0134C

Teaching Note: Available

Structured Assignment: Available

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Abstract:

Forever 21 Inc., is a US based retail chain that specialised in women’s apparel and accessories. In 2004, the company bought Gadzooks, also a retail chain, despite its bankruptcy status. The case provides a background note on the retail chains and Forever’s strategy to leverage on Gadzooks’ brand despite analysts’ doubt over its future.

The case offers scope for discussion on brand positioning, strategies for retailing and issues involved in takeovers.

Pedagogical Objectives:

  • To make students understand the retail markets
  • The importance of brand positioning and the choice of distribution channels to reach a wider segment
  • Takeover and Acquisition strategies.

Keywords : Forever 21; Gadzooks; Growth Strategies Case Study; Chang; Meyer; Love 21; Wet Seal; Glendale Galleria; Accessories

Contents : 
Forever 21: The Success Story
Gadzooks, Inc
The Gadzooks’s acquisition and the future challenges
Competitors of Forever 21
For Love 21’s Interiors
Location of Forever XXI stores

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