Case Studies Club Business Strategy School

Case Success Guide

Overview

Premier Home Solutions rides a wave of digital success. A recent pivot to online sales and virtual consults has lifted revenues and margins – site traffic is surging (up ~23% in the past year (Online Hardware Store & Home Improvement Ecommerce stats)) and average order sizes are solid at about $315 (Online Hardware Store & Home Improvement Ecommerce stats). But the euphoria in the boardroom feels strained; executives see four divergent paths ahead. Each promises growth or peril. Should Premier go "all in" on a national e-commerce push, swallow regional rivals, branch into the booming smart-home arena, or cautiously reintroduce old-school service? This report sharpens the dim, smoky contours of that decision. We balance financial projections (revenue, investment, margin) against market trends and internal capabilities. The goal: illuminate the best course through these neon-lit uncertainties.

Backstory

Once a regional chain of home-improvement stores, Premier's story is a classic turnaround. In its analog days it delivered hammers and lumber face-to-face, with steady but modest growth. As the market darkened, a new CEO doubled down on technology. In recent years (the precise timeline is confidential) Premier invested in a cutting-edge e-commerce platform, mobile app, and a CRM. The gamble paid off: online now accounts for the majority of sales, with digital revenue up roughly 40% year-over-year and customer satisfaction metrics in the 80th percentile. Old warehouses were repurposed as fulfillment centers, and a small army of virtual consultants was hired (or retrained from sales) to offer design help over vide...