About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. is the only global company that offers an interactive make-your-own stuffed animal experience. The company currently operates more than 400 stores worldwide. Including franchise stores in Europe, Asia and Australia, which make Build-A-Bear Workshop the leader in interactive retail.

The Workshop offers an experience to children they have never had before, allowing them to “make” their own best friends in a teddy bear themed environment from start to finish.

The BBW is very reliant on customer feedback, as it is the driver of the business in many instances. They are known to be involved in cause marketing as well, partnering with the WWF to spread awareness of endangered wildlife, and participating in many philanthropic activities.

In 2003, BBW began to expand its stores on a global scale, and faced both successes and slight disappointments as a result of the expansion in Germany, due to their high demand and sales however, they were able to afford the declines.

The BBW undertook several strategies while marketing their product, their in store marketing strategy included a very “hands on” entertainment strategy, assisting the children throughout the making process and interacting with them. They used a value added method to drive customers to their stores; their prices were very reasonable and affordable.


1)  How would you characterize the current global BBW strategy?

There are nine possible strategic windows that can be recognized. In order to identify which strategic window does the build a bear workshop fit to, we need to analyze its marketing strategy, financial position, and the company's growth.

Build - a - bear workshop operates in the Toy & Hobby Stores industry in the services sector. If we look at the financial data, we can see that BBW does not have any direct competitors. It is the market leader by the revenue growth in the industry, return on equity, and the long-term growth rate (> 5 years) (Yahoo Finance, 2010). Since the opening of its first store in 1997, Build-A-Bear Workshop has been the "developer and leader of the make-your-own-stuffed animal store concept for mall-based retailing" (Business Wire, 2001). Yahoo Finance however identifies the indirect competitors of BBW as , which is a privately owned company that collects from collectibles and offers wide variety of products that include music boxes, plush animals, and ornaments; Gund, which focuses on stuffed animals and their virtual lives; and The Vermont Teddy Bear Co., a company that "makes old-fashioned, jointed teddy bears up to 3 feet tall. They're available in several colors and about 190 different outfits, such as ballet tutus, wedding gowns, and sports uniforms" (Yahoo Finance). The three companies together however have a lower market cap and revenue growth. Build-A-Bear founder Maxine Clark prefers to see any company that "competes for guests' time" as competitors. Playthings Magazine ranked BBW as the tenth largest toy retailer in the US for 2007 based on sales. An example of other retailers in the US would be Toys R Us. 

Pricing-wise Build-A-Bear does not have competition either. The products are priced within 10 - 25 US Dollars range, whereas in comparison Toys R Us offer a 15inch brown fluffy bear at US $39.99 (Toys R Us, 2010) and a simple  18inch  Gund Teddy Bear is priced at £29.99, which is around US $47. (Gund Teddy Bears, 2010).

Back in 2001, the company was in a strategic window where they would consider expansion in international markets. The company was an adolescent in its business and had a global potential. Since then the company opened its own stores in England, Scotland, Wales, Ireland, and France, having 345 company-owned stores by early 2009. By that time company also counted 62 franchised stores in Japan, South Africa, Australia, Singapore, Russia and other countries.

Today BBW is a global world-wide known brand. Its strategy however is directly connected to the customer contacts in the BBW store area. United States is known to be the entertainment center of the world. therefore the company focuses on providing the entertaining experience for its customers rather than the usual shopping experience. Because of the first-mover advantage and a high differentiation, BBW offers a unique experience that allowed it to be in demand internationally. We think at this stage the company should focus on acquiring more global alliances that would allow the brand to expand even more and strengthen its global position.

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BBW is partnered with the World Wildlife Fund, where it donates US $1 to WWF for each stuffed animal purchased from the "Collectifriend" series. They are also partnered with Bearemy's Kennel Pals, where BBW "donates a portion of the proceeds from the sale of each full-sized Bearemy's Kennel Pals friend to local animal shelters and stray pet rescue and rehabilitation organizations around the country" (Build-A-Bear Workshop, 2010). Also the company has its Build-A-Bear Workshop Foundation and Nikki's Bear programs which are "committed to improving communities and impacting lives through meaningful philanthropic programs that support causes for children and families" (Build-A-Bear Workshop, ...

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