Questions:

1. Create and document an AFI analysis.
   1. Who are the major players in the market?
   2. Pay particular attention to core competencies and corporate strategy.
2. Do you think this corporate competitive strategy is a good strategic move?

THIS NEWSPAPER ARTICLE BELOW IS THE CASE...

1 Normal 1 No Spac... Heading 1 NP Paragraph . 1 1 2 3 5 DUGINLOS NEWS Rent the Runway Considers Sales T- BY JOHN D. STOLL AND CHARITY L. SCOTT Fo BY DR nels Rent the Runway is raising a new round of financing and is focusing on selling clothes, T-M not just renting them, after the ing an startup suffered a near-fatal vice al blow from a coronavirus pan- U.S. ho demic that has kept women the cal home for most of the year. Jumpir The New York company crowde raised roughly $100 million in ket. The new debt and equity financing this week, as it continues to phone work toward a public offering, that in vice This funding represented a three continuation of a $25 million bundi funding round this summer that valued Rent the Runway Cente around $750 million, accord- TVisi ing to people familiar with the age terms, lower than a prior val- nels, uation. and Rent the Runway launched and in 2009 as an online clothing The dothing rental startup sald customers have shifted to buying more Items than before the pandemic adds rental service for special occa- tion: sion apparel and accessories. It quickly had it not been for more items than they did be speed up some moves, such as T shifted to monthly subscrip Covid, said co-founder and fore the pandemic. A substan- giving customers the ability to ploy tion plans and expanded its of- CEO Jenn Hyman. She said the Lal portion of the new fund- review items before shipment T-M ferings to include workwear, goal is to boost revenue at a ing! provided by Ares to reduce returns. the children's clothing, and more ime when subscriptions are Management Corp. will be Like other retailers, Rent foll recently home goods. But coro- still below pre-pandemic levels. spent on new marketing initia- the Runway will use dynamic cus navirus has changed America's Covid-19 hit the closely held tives. Ms. Hyman also plans to pricing. If, for instance, a cus- wardrobe habits. Fewer people Rent the Runway hard, at one add more head count, includ- tomer looks to buy something to need as many work outfits or point cutting its subscriber ac- ing engineers and data scien- that has been listed very re- vic dress up for events. tivity by as much as two-thirds tists. cently, it may be brand new, so cel The company has long of compared with pre-pandemic Other companies that there will be no discount. As un fered customers the option to levels, Ms. Hyman said. sought to upend traditional re- the items begin circulating to wi buy items they rent, and it is To respond, she furloughed tail have also had to rethink members, buyers looking at expanding that service. Start- or laid off half the company's their business models during used clothing will see prices de ing next week, Rent the Run workforce, scrapped its unlim- the pandemic. Stitch Fix Inc., fluctuate based on popularity at way will allow its members to ited subscription plan, shut alla service that sends customers and how much it has been T purchase any item on its site, retail stores permanently and curated boxes of clothes saw rented. N whether or not they have reworked pricing. Its rental higher demand this summer Several other e-commerce rented it. More significantly, subscription now costs be- for direct purchases from its sites that sell used clothing are the option will become avail tween $89 and $199 a month, website versus its fixes, preparing to raise additional able to shoppers without a depending on how many items which are items the company funds from investors. Rent the Runway subscription customers want to have at a preselected and shipped to In recent weeks, both Posh- in the first half of 2021. time. customers. mark Inc. and thredUp Inc. "The company was always Rent the Runway said rental Stitch Fix CEO Katrina Lake have said they filed paperwork nd Ex- noving in this direction, but activity has improved from the said changes in consumer be with the Securities here is no way we would have summer lows, but existing cus- havior during the pandemic change Commission for initial eaded in this direction as tomers have shifted to buying prompted the company to public offerings