CASE ANALYSIS: HARTMAN LUGGAGE COMPANY (HARVARD BUSINESS SCHOOL 9 577 064, 1976)I. Analysis of External Situation.
Hartman's customers are primarily in the upper middle and high income brackets. At the time frame of the case, the target segment was neither growing nor shrinking. Many of Hartman's customers, at the time frame of the case were also those who were fashion conscious to the extent that they were willing to buy new luggage to remain in fashion. The fact that Hartman's growth exceeded that of the luggage industry while the company's target segment was neither growing nor shrinking was an indication that the number of the company's customers who were responding to fashion motivations was increasing.
In the luggage industry as a whole, the market leaders at the time frame of the case were Samsonite and American Tourister. Hartman's primary competition in the high quality and fashion segment of the industry, however, was French and Lark. French and Lark has a market share about one fifth the size of that of Hartman, while Hartman's market share was only one tenth that of the industry leader, Samsonite, and one fourth that of American Tourister, the number two firm in the industry.
The luggage industry, defined according to industry as opposed to governmental guidelines, was flat to declining. In real terms, the industry projected growth over the 1976 1985 time period at approximately seven percent per year in dollar value. With population increases expected to account for approximately one third of that growth and higher unit prices in real terms expected to account for another one third of the anticipated growth, growth in per capita unit sales of luggage was expected to be essentially flat over the 10 year period.
The trend at the time frame of the case was toward soft, casual luggage. In 1975, hardside luggage still accounted for 42 percen...