Saks: Shocking the Fashion Industry Supply Chain

Saks: Shocking the Fashion Industry Supply Chain

By
Michael Marks, David Hoyt
2014|Case No.GS86| Length 12 pgs.

On November 25, 2008, the high-end department store Saks slashed its prices by 70 percent, creating a tsunami in the fashion industry.  Years later, the ripples of this action still lingered.

This action and its effects provide an opportunity to analyze downstream supply chain management, the impacts of Saks’ price-cutting throughout the supply chain, and the options available to various stakeholders to mitigate the damage.

Learning Objective

This case is intended for use in a course on supply chain strategy. The case highlights relationships between stakeholders within a supply chain, and how a decision by one participant can fundamentally change an industry. The teaching objective of the case is to understand these relationships, and ways that industry participants can attempt to protect their interests from the negative consequences of actions by other members of the supply chain.

This material is available for download by current Stanford GSB students, faculty, and staff only. For inquiries, contact the Case Writing Office.