Case Study: Restoration Hardware

Key Terms

On Strategy: How might a company increase its long-term value by intentionally shrinking its customer base and eliminating popular products?
(This uncovers the "burning the boats" principle and the value of brand purity over short-term revenue.)
On Marketing: In a world obsessed with digital ads and efficiency, how can a business use high-cost, "analog" tools (like a 10-pound catalog or a giant, expensive store) as a contrarian—and effective—marketing strategy?
(This explores the idea of "brand as media" and using physical items as a competitive moat.)
On Competition: When your entire industry is running in one direction (e.g., e-commerce, low cost, fast shipping), how do you identify the opportunities in running in the exact opposite direction (e.g., experiential retail, high cost, slow luxury)?
(This gets at the core of a contrarian strategy and zigging when others zag.)
On Business Models: How can a membership model be applied to a low-frequency, high-ticket industry (like furniture or cars) to create customer loyalty and predictable revenue?
(This forces students to think about the psychology of loyalty, not just the math of a subscription.)
On Leadership: When is it necessary for a leader to take a company private (or otherwise shield it from public markets) to execute a radical, high-risk transformation?
(This explores the pros and cons of being a public vs. private company and the role of a "wartime" CEO.)

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