Business Case Studies, Diversification Strategies Case Study, Hallmark Card Inc. in 2006

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Diversification Strategies Case Study

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Case Title:

Hallmark Card Inc. in 2006

Publication Year : 2006

Authors: Anandan Pillai, Dr. A.V Vedpuriswar

Industry: Retailing

Region:USA

Case Code: DIS0013A

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

Hallmark Inc. founded by J C Hall gradually grew to become the market leader (with market share of 50%) in social expression industry. Hallmark attained the leadership in greeting card segment with a requisite knowledge base of employee and undertaking constant changes in brand management, distribution facilities, product differentiations and technological up-gradations. In the mean time, Hallmark ventured into entertainment business and started an entertainment channel, which also gained significant success. But due to the lack of appropriate back-up of full fledged media partner, Hallmark felt it was difficult to manage its financial position and decided to exit from the entertainment business. In 2006, Hallmark decided to launch lifestyle magazines targeting the women segment.

The case discusses how Hallmark, at regular intervals of time pursued unrelated diversification. At the end it attempts to initiate the debate that whether Hallmark would be successful in the magazine business.

Pedagogical Objectives:

  • To study the various diversification strategies undertaken by Hallmark
  • To discuss the entry strategies for Hallmark
  • To analyse the prospects of Hallmark in the magazine business.

Keywords : Hallmark; Greeting cards; social expression industry; lifestyle magazines; Hallmark entertainment channel; diversification; Diversification Strategies Case Study; brand management; market leade

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