BirchBox Case Study

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Oklahoma State University *

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2203

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Electrical Engineering

Date

Apr 3, 2024

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docx

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2

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Azriel Carrasco Professor Butler EEE 23 February 2024 Birchbox Case Study 1. In what ways is Birchbox’s business approach a win-win for its suppliers and customers? For suppliers, Birchbox provides beauty brands with a unique marketing and distribution system. By partnering with Birchbox, these brands can reach a targeted audience through the distribution of product samples which in turn leads to more exposure and increased sales of full-sized products. For consumers, Birchbox offers them an opportunity to try curated samples of beauty products before fully committing to a full-sized purchase. This allows customers to find products that suit their preferences without taking the risk of buying a product they will not like. 2. How did Katie and Hayley’s status as students help them in the planning, testing, and prototyping stages? They used their status as students to negotiate with professors, making Birchbox the focus of their final projects. This provided Hayley and Katie with guidance and ensured that Birchbox would receive dedicated attention and feedback. Their student status also opened doors to suppliers and customers, as companies were more willing to do business with them due to their college affiliation. This helped Katie and Hayley build a prototype, test the concept, and gain initial feedback from potential customers.
3. Going forward, what challenges are facing Birchbox, and which is the most threatening to its success? Financial sustainability is one of the challenges Birchbox faced despite rapid growth. The beauty subscription market has also become increasingly competitive and saturated. Companies like Ipsy, GlossyBox, and BeautyArmy are some examples. These reasons would be the most threatening to Birchbox’s future. 4. How has the market changed in the years since Birchbox was founded? What do they need to change to stay viable? The market has evolved since the beginning of Birchbox with many new competitors in the playing field now. To stay viable, Birchbox must continuously innovate its business model, discover new product lines, and adjust to changing consumer preferences. Monitoring industry trends and tech advancements will be critical for Birchbox to remain relevant and an appealing choice for customers.
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