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Fingerhut's Price Strategy (B): Epilogue
West, June A. Case E-0289 / Published May 24, 2006 / 3 pages.
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Product Overview

This epilogue tells the story of Fingerhut when it was acquired by Federated Department Stores for $1.7 billion, at the height of the internet bubble. Federated was interested in Fingerhut's order fulfillment systems as a possible prototype for its own on-line store. That on-line venture never materialized, and Federated began to sell Fingerhut in pieces. It was purchased by the original owner and a Minnesota entrepreneur who are in the process of restoring it to health. The case continues to explore the ethics of Fingerhut's business model, what attracted Federated and why it failed.

  • Overview

    This epilogue tells the story of Fingerhut when it was acquired by Federated Department Stores for $1.7 billion, at the height of the internet bubble. Federated was interested in Fingerhut's order fulfillment systems as a possible prototype for its own on-line store. That on-line venture never materialized, and Federated began to sell Fingerhut in pieces. It was purchased by the original owner and a Minnesota entrepreneur who are in the process of restoring it to health. The case continues to explore the ethics of Fingerhut's business model, what attracted Federated and why it failed.

  • Learning Objectives