“CPI Corporation: What Happened?”

Read the case for analysis “CPI Corporation: What Happened?” beginning on page 170 of the textbook. Then discuss the following questions: 1) What were the concerns about the direction of CPI? 2) Why did CPI fail to read and respond to the changing environment in which it conducted business? 3) As technological trends and consumer behaviors and attitudes changed, why did CPI hold on to its own success model? 4) As business competitors within the industry weigh their future, how will they pay attention and adjust their business strategies in order to remain viable and avoid the CPI fate?

They are the most treasured possessions; they line mantels and living room walls; they are the first items frantically sought by family members following fires or natural disasters. They are family photographs. Considering the popularity and demand for beloved photographs, it seems logical that the market leader in the portrait studio industry, with a 60-year history of success and the convenience of store locations within retail giants Walmart, Sears, and BabiesRUs, would have the confidence of a secure and bright future. That was the apparent situation for CPI Corporation, the store-within-a-store portrait studios. With over 1,500 locations, the studios offered consumers the convenience of inexpensive family portrait packages, combined with one-stop shopping for family and household needs. Then abruptly, in April 2013, CPI announced closure of all of the company’s <link is hidden> locations. That announcement and immediate slamming of the doors caught everyone, including employees and customers, by surprise. As families scrambled to locate and retrieve their photographs, employees absorbed the blow of a sudden loss of salary and benefits, including health insurance. But in recent years, there had been voices of concern and questions about direction at CPI. At a board meeting in St. Louis in 2006, then-CEO Paul Rasmussen expressed concerns with the need for improvement of the customer in-store experience and his own awareness of the lengthy wait times for photo sessions, followed by additional lengthy wait times (up to six weeks) for delivery of the photos from a central printing location. The abruptness of the closures may have been the only real surprise to many competitors who continue to thrive and who expressed amazement that the industry leader failed to blaze the way with cutting-edge technology. “There’s no reason why CPI didn’t invent Instagram (photo sharing),” said Mitch Goldstone, CEO of <link is hidden> “CPI had the greatest opportunity. They had a huge customer base nation-wide that they let disappear overnight.” Aware of its corporate strengths, CPI increasingly failed to read and respond to the changing environment in which it conducted business. A glance through its recent history reveals potential problem areas for the company. Rasmussen’s 2006 urging to board members to shorten in-store wait times and to modernize backdrops and traditional posing styles was ignored in favor of finding ways to attract additional customers. Consumer expectations were changing toward the immediate gratification enabled by the iPhone age with digital photography and instant access/sharing capabilities for their photographs. CPI, however, remained committed to centralization of printing and avoided the cost of updating stores with digital technology. Meanwhile, competitors discovered innovative ways to build technology into their services and products. Companies such as Picture Perfect offered one-hour digital printing. <link is hidden> provided the convenience of online photo services. And Lifetouch, whose store-within-a-store photo studios are located in JCPenney and Target stores, expanded their market into providing school pictures. As technological trends and consumer behaviors and attitudes changed, CPI continued holding on to its own success model. In April 2013, with loan obligations of $98.5 million, CPI closed all <link is hidden> locations. By June, competitor Lifetouch Portrait Studios, Inc. had entered a “stalking horse” agreement to purchase all CPI assets and awaited competing offers. Photography and digital technology continue to evolve at an unimaginable pace, and consumers feel empowered in their abilities to now go beyond taking, sharing, and printing photographs to explore the design and manipulation and animation of photographs. As business competitors within the industry weigh their future, how will they pay attention and adjust their business strategies in order to remain viable and avoid the CPI fate?

find the cost of your paper

Court Management Trends Paper

Write a 700 to 1,050 word paper related to trends in the management of courts. Explain how the following issues impact the way courts complete their function: The implementation of….

Provide a 500 word minimum post that reflects upon what bills you would propose?

Provide a 500 word minimum post that reflects upon what bills you would propose? If you had to pick one policy topic and draft a bill on it what would….

Mental Disorder & Sexual Orientation

Mental DisordersUse the Internet to identify a criminal case associated with a mental disorder. Examine the criminal case from the e-activity and identify the type of mental disorder of the person(s)….