Gilt Groupe

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Case 3 Guilty as Charged [pic] 1. Perform a SWOT Analysis for Gilt Groupe. 2. Looking at your SWOT, what is the single greatest threat facing GG? How would you react to this challenge? What strategy would you follow or propose? 3. Looking at your SWOT, what is the single greatest opportunity facing GG? How would you go about taking advantage of this opportunity? What strategy would you follow or propose? 4. Five years from now, where do you see GG? A success? A failure? Why? • Do not be too cryptic with your responses. In other words, don’t just give me a bullet point in your SWOT analysis with something like “the economy” as your response. I’ll need more explanation than that. • Make sure to not…show more content…
Everything goes at flat-rate discounts of up to 70%. (Yes, there 's a return policy for apparel and accessories, so no need to worry about getting stuck with something that doesn 't fit.) The site 's professional buyers-many of them veterans of Saks-build relationships directly with brands, picking from their excess inventories. Gilt, which launched in November 2007, expects sales of $25 million for the year. The site has amassed more than 500,000 members. Customers are mostly women in their late 20s and early 30s with incomes in the low to middle six figures. They 're often women like Antonia Thompson, 26, a senior associate at fashion consultancy Robert Burke Associates. Thompson visits the site daily and says, "The best stuff is sold out in five or ten minutes." During one week in November, she purchased a set of LuLu D.K. for Matouk linens for $560 (regularly $1,400) and a pair of Banfi Zambrelli over-the-knee boots for $250 (down from $900). Gilt has unquestionably hit a stride. October sales were the highest to date. But will the momentum last as cold winds begin to blow down Fifth Avenue, the epicenter of high-end retail, and even the new stuff is marked down by as much as 40%? Lyne believes so and is already talking about a whole empire of Gilty pleasures. "You can use this platform for any white-label sale," she says. "Imagine the possibilities. High-end appliances. Cars." It 's jarring to hear a retailer sound so upbeat just now. But she 's got a

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