Recommendations:
1. To boost revenue in the handbag, luggage, and accessory market, Vera Bradley should focus on expansion in the Chinese Market.
In comparison with their three major competitors presented in this case, it appears that Vera Bradley has a competitive disadvantage. Except for price point, they are lagging in competitive areas of brand awareness and market expansion. Vera Bradley’ ability to sustain competitive advantage has been cumbersome. Gamble et al. (2015) state that the scope of the firm can help improve the span of their business plan, as well as how far they can expand their reach within market segments. Vera Bradley should invest in expanding in the Chinese market for luxury goods because it has been historically low in demand. The Chinese
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When shopping for a Vera Bradley item, a customer will fall in love with maybe 1-2 specific patterns and if Vera Bradley implements the strict pattern introduction and exit the customer will be more inclined to purchase more items with their favorite pattern. Vera Bradley should expand their solid color line of luxury goods. If Vera Bradley offers more solid patterns, they will be able to reach even more customers who prefer a subtler look as opposed to the traditional vibrant, unique patterns. If Vera Bradley continues offering different products a focus should be placed on the solid pattern product lines. Not all customers in the market who are looking to purchase a handbag, luggage, etc. want the more eccentric patterns offered. By expanding the brand and putting more focus on simpler patterns, Vera Bradley will appeal to more people while also staying loyal to their original idea. By simply offering 1-2 solid patterns per season, Vera Bradley will see an increase in customer base and
This beauty retail store SWOT Analysis includes several strengths and weakness that it has currently developed in its structure. However, there are a few opportunities that this company should take advantage to seize the moment and there are a few threats in which they should find new ways to overcome
Bed, Bath and Beyond (BBBY) currently has $400 million more in cash than they need for ongoing growth and operations requirements. While the company is financially sound analysts and investors worry about the company’s capital structure decisions. Investors do not want to see that much cash on the books and worry that the current capital structure is not the most effective for the future. They prefer that BBBY change their capital structure by paying out excess cash and issuing debt. This could allow BBBY to improve their return on equity and raise earnings per share. Given the low interest rates available it seems like the perfect time for BBBY to add debt to its capital structure. Until now they
The financial data will support the strategy as the ratios and numbers show that Macy’s has resources and capital available for the implementation. Evaluation of external and internal factors positively presenting an opportunity for Macy’s to use designed strategy to and keep competitiveness in the industry. Summarizing Macy’s is a well-established organization with over 150 successful years in business that still has an ability to compete with leaders in the industry if the right
Foxy Originals hopes to gain successful market entry into the United States within six months. The U.S. market is significantly larger than the Canadian market that Foxy currently operates in and has substantially less brand loyalty and demand for classic jewelry. Foxy’s two potential methods of market entry are: (1) Tour their products at ten U.S trade shows and make direct sales to retailers or (2) Hire four sales representatives in fashion hubs across the U.S. We, Vandelay Industries, recommend Foxy implement the first alternative.
Additionally, as expressed by Rebecca Ratner, Hsieh’s commitment to merging the workplace with social lives could present risk to the company in the form of unprofessional or inappropriate conduct that is not addressed properly.
It might not be in the retailer’s best interest to perform such upgrade, as the new system will replace three of the existing legacy systems in terms of ordering and fulfillment. The IS department will perceive such upgrade as a radical move and is expected to show high resistance in response to it. Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that “only one person had left the department” in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia, and thus creating a huge barrier for such
Burberry need to scan their market segments in order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. The economy within China is currently very stable; being a part of the 4 fastest growing economies in the world (BRIC: Brazil, Russia, India, China), it has made large strides in recent years in the business and industrial sector. , the country
Even though H&M follows a strategy which differs significantly from Inditex’s approach it is the closest competitor from the financial point of view. H&M differs from Zara because it outsources all of the production, it is more price oriented and spends more money on advertising. But both companies are based in Europe, are fashion forward at lower price retailers, and have a strong international expansion strategy. Exhibit 6 indicates that the financial results of Inditex and H&M seem to
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.
Risk is a core reason why other luxury goods companies, with an eye on a Hong Kong listing, have hesitated. Prada was bold in its listing strategy, and that has to be one of the biggest lessons. It is one thing to identify emerging Asia – and China in particular – as the sweet spot of luxury goods opportunity, it is another to act on it
Rosewood Hotels and Resorts is a private hotel management company established in 1979 by the Caroline Rose Hunt Trust Estate. It is a well known company in the luxury hotels market which owns 17 iconic properties in 7 different countries (http://www.rosewoodhotels.com/en/the_company/). The first hotel was The Mansion on Turtle Creek in Dallas; afterwards the company expanded its “collection of unique properties” all over the world by converting and repositioning existing sites and by building up brand new luxury hotels. The distinctive feature of this collection is the so called “A sense of Place”. In fact in a Rosewood hotel every single
The following case analysis will assess Coach Inc. and its strategy in the accessible luxury brand goods market. The coach strategy focuses on its luxury rivals in matching key quality styles while offering it at a cheaper price. The company offers most products at a 50% off discount price less than other brands which gives them a competitive advantage pertaining to its customer base. Coach marketed its products to middle –income consumers desiring taste of luxury, but also affluent and wealthy consumers with means to spend considerably more on a handbag (Gamble, 2012. P.C-73) .The Company also has several other strategies such as to increase global distribution, improve same store sales productivity and continue its multi-channel business model which includes indirect whole sales to third party retailers but also focuses on direct consumer sales. Coach has done well in the luxury goods industry but the companies profit margin is still below the levels achieved prior to the onset of a slowing economy in 2007 ( Gamble, 2012. P.C-73.The Company had experienced a decline in sales as they are unsure if the company recent growth could remain constant and maintain their competitive advantage with other successful luxury lines Michael Kors, Salvatore Ferragamo, Prada and Dolce & Gabbana.
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
Owing to the successfully accomplishment of " low price, quality assurance" and excellent online sales channels, UNIQLO sees itself as nicely positioned to weather the China's slowing economic growth (Roxburgh, 2016). Meanwhile, serious competition with other apparel retailers is the primary obstacle to the development of UNIQLO. In the view of Zhu (2013), the Chinese market is massive, diverse, and has enormous potential. For the sake of truly thrive in this market, there is a need for foreign brands authentically understand the changing characteristics of Chinese customers, and establish quality products and services to satisfy their requirements. One recommendation is because this report use the SWOT analysis and Marketing Mix to assess UNIQLO's marketing strategies in China, it is worthwhile for further researchers to utilize other marketing tools to evaluate UNIQLO such as Porter's Five Competitive
LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]