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Swot Analysis High end Retail Store

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alan iduria

on 30 October 2013

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Transcript of Swot Analysis High end Retail Store


-high growth rate

-reduced labour costs

-barriers of market entry

-high profitability and revenue

-skilled workforce

-experienced business units

-new products and services

-growing demand


-future profitability

-cost structure

-brand portfolio

-small business units

Swot Analysis High end Retail Store

Four Retail Stores
Michael Kors
Louis Vuitton
-cash flow

-increase in labour costs

-technological problems

-growing competition and lower

-government regulations

-financial capacity

-increasing costs

- Strong Brand Image and brand equity

- Control its distribution Channels effectively

- Strong chain value with suppliers and retailers
- Directly operated stores

- Has a huge product portfolio like apparel, clothing, wallets, watches etc

- Associations with automobile companies like Ford, General Motors, Fiat added brand value

-Has to invest huge money in order to protect and maintain its brand image

-Diversified product range, hence has a risk of brand dilution

-Emerging luxury markets in emerging economies like India and China

-Creating competitive advantage in different business segments

-To target the youth segment which stylish designs

-Extremely competitive segment

-Product substitution is easily available

Michael Kors
-The clothes have been fancied by ladies for past 30 years.

- Hollywood film celebrities have worn Michael Kors on red carpet.

- Michael Kors clothes and accessories were shown in the reality shows on TV.

- The company claims that the brand has a high recall

Michael Kors
-The brand being among the elite brand is prone to recession and economic downturns

- The brands geographic presence is restricted and is lesser known globally

Michael Kors
-Very well-known brand in US and other developed cities

- Analysts believe that the company will have an improved performance

- High brand saliency and the positive affirmation from consumers have influenced demand in domestic market and the neighbouring countries

Michael Kors Threats
-Other brands offer more styles and cuts

-Similar products available in other brands thus switching cost is less

Louis Vuitton
-The brand is one of the oldest fashion houses with more than 150 years of history

-The brand is easily recognizable because of its logo and monogram canvas on most of its products

- The brand has its presence in most of the large shopping hubs of the world

-The brand is available exclusively in its own stores.

-The brand also makes custom Tailored products for its few elite customers

-The brand has a clientele including international celebrities

- Extremely high brand recall and global presence

Louis Vuitton
-The brand is available only in its exclusive stores making it difficult for people all around the world

- Fake imitations affects brand and sales

Louis Vuitton Opportunities
-The company needs to adopt the current fashion trends to stay in business

-The company can offer once in a year discounts for its customers.

Louis Vuitton
- The brand is counterfeited all around the world

- Economic crisis can hurt the brand sales in a negative way
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