Internal Environment Of Gucci

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains

For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the firm’s brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14-18). Moreover, “the after-shocks of the global recession were a threat to Louis Vuitton’s luxury business in Japan”, and Japanese women became less interested in the brand’s products (Pearce & Robinson, 2013, p. 14-18). Alternatively, Louis Vuitton could “reinvent itself and regain what used to be its well-attested

Robert Palot brought with him new vision and strategic goal for the company. He had a strong conviction over the development and rebuilding of the Gucci brand in the target market, for this purpose he made up the team of professionals who were devoted to work whole heartedly for the company new vision. Palot has redefined the distribution strategies for the improvement of the product line and growth of the market share along with market penetration. Thus, for invigorating the company's profitability and brand building appetite Palot and his team had the vision of maintaining the financial health of the existing brands, while increasing the customer based by entering new product categories and expanding the distribution network. The results of the new corporate strategy were that company achieved solid

Overview: Universal Luxury Group is an international group of companies principally engaged in the production and sale of luxury goods including Food and Beverages, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and other business. Among them, this case is handling Perfumes and Cosmetics business group that accounts for EUR 2,231M, 19% of sales revenue.

Gucci was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's products. In 1947, Gucci introduced the Bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal horsebit. The Gucci group really said it all, Tom Ford, creative director and Domenico de sole, president and CEO, stood side by side facing the camera with eyes of steel. These two men had, in the first six months of 1999, been the centerpiece of one of most higly contested hostile takeover battles ever seen on the Europian

We can also leverage the strength and popularity of the Gucci brand to gain distribution for the smaller names, much like how LVMH leveraged Louis Vuitton’s popularity. By holding off of new acquisitions, Gucci can learn to handle the four brands they currently have before adding extra brands.

An increasing economic interdependence of national economies across the world experiences a rapid cross-border movement of goods, service, technology and capital. Luxury goods industry, serve as one of the most competitive industry, emerging and developing rapidly all the time. To a great extent, globalization promotes the development of luxury goods industry significantly in spite of the big shock hit by several times of economic crisis.

Gucci utilizes the differentiation business strategy, as the brand itself promotes premium quality. They are known for their high end leather products and the red and green striped webbing with the GG logo. The company is in no way price-sensitive and caters to the affluent through customization, genuine leather, premium quality, and exceptional customer service. Gucci’s customer base is more than willing

Louis Vuitton is considered under the luxury goods industry. The luxury goods industry is a high profitable industry with low outside threat. There are only few large players in the industry and they server to the wealthiest people in the world. The luxury companies have high power to control the price so they have ability to grow sustainably.

In reducing the number of vendors, the company was able to maintain high quality levels through close quality control measures and maintain its brand image of working to create the perfect shoe.

Gucci is a well known, international luxury fashion brand which is easily recognizable with its famous icons such as the double G logo, horsebit and the red & green stripes (web) especially after Guccio’s sons succeeded in promoting the brand as luxury which attracted many rich customers. ( https://www.pearson.pl/wrap.php?data=files/sample_pages/INTELLIGENT%20BUSINESS/9780582848092.pdf )
Many of Guccio’s clients were horse-riding aristocrats, and their demand for riding gear led Gucci to develop its unique Horsebit icon which soon became the symbol of the fashion house.
In the mid-60s, Gucci adopted the legendary interlocking double G logo which was Aldo Gucci’s idea representing the initials of his father’s

According to Gucci Official Site United States (2016), Gucci is a progressive, innovative, and influential brand aimed at reinventing fashion in the 21st century. Their products are romantic, contemporary, and eccentric that portray the finest Italian dexterity. Gucci’s products are known for their premium looks along with their best quality. Hoang (2016) mentioned that, Gucci reflects its premium brand value by maintaining a ‘perfect balance’ between the brand’s status as a leading fashion company and its Italian heritage. Gucci’s values and brand identity can be described in three phrases: Italian craftsmanship, creativity, and quality. According to Wendlandt (2016), the brand has been

Although the company is very secretive about its process and value chain, we identify some large common denominators with the lingerie industry. La Perla, along with all major fashion houses relies on designers for the election of their fabrics and they play a major role on the election of suppliers. This is the first step into their value chain, assessing quality and selecting the best supplier for each line and product. Once the raw materials are in its warehouse the most important step occurs, the confection and cut of the fabric, this is done by experts and where La Perla focus is added value. Once the product is

However, in Gucci marketing plan, there were many risks involved with the “star design strategy” as this marketing strategy definitely gives instant success by boosting sales and rebuilding the reputation main asset for luxury brands like Gucci, but the risk involved is high for the company to forecast the effect on the brand image in the absence of star-design.