Coach's strategy to compete in the handbag and leather accessory industry is to differentiate itself from others in the industry, they want to be able to match key luxury rivals in quality and styling while beating them on the price by 50 percent or more, yielding a competitive advantage in attracting not only middle-income consumers desiring a taste of luxury, but also affluent and wealthy consumers with the means to spend considerably more on a handbag. Coach is able to differentiate itself by introducing new handbags every month with the highest quality and latest fashion trends which is done through market research. The key here is to get the consumer into the store as often as possible. All this adds up to increased store traffic, which all businesses are striving for, this is in large part due to the new style of hand bags, which turns into more sales. Instead of the typical industry members who offer high quality leather products as well, but charge a higher price, Coach looks to create “accessible luxury” in that it wants to create a high quality product at an affordable price in its factory stores while still catering to higher end consumers with its full-price stores.
Analysis: Corporate: Look into expanding even more globally and even the possibility of entering the “brick and mortar” industry. Business: to improve competitive position they can continue to innovate and use the successful business models that have gotten them where they are today. Competiveness) Blue Nile currently holds 0.6% (19 ranking) of the market share of Jewelry Retailers. Something the leading 18 have in common is that they have a physical location. Their s also less global competition which equals more slices of pie for Blue Nile.
Case Problem/Opportunity The Amber Inn & Suites, Inc. has been generating negative profits. The company must find a business method and strategy that will increase EBIDTA to grow 7% in 2 years. In trying to develop the most beneficial business strategy, Amber Inn has to allocate their marketing and advertising budget more efficiently. Their marketing costs rose from $1.14 million to $12.5 million. Now they must align their marketing strategy to cohesively coincide that of their business plan to bring in the clientele that will make them the most profitable.
-Threat: Increased Competition: America, Japanese, and Italian firms had established factories in China. Strong competition that will compete for the same skilled employees. Chinese language and cultural barriers. Industry Attractiveness: China has made significant progress in the furniture market and will likely continue to see further growth due to its low labour costs and low tariffs making this a very attractive market for Palliser. Internal Analysis: (Firm) -Strengths: Recruited product managers/designers from all across the world including Sweden, Hong Kong, and Italy.
However it has adapted to the current business environment and is now seen as one of the higher end shops on the high street. This means consumers are willing to pay higher prices for Topshop products even if they have less money, because they see Topshop as a long established high quality brand. Topshop mainly targets customers for repeat spending; therefore they build up a lot of customer loyalty. Topshop have had an
(Primark 2013) (The Times 100 2013) Primark compete with their competitors by using a cost leadership strategy, the sell bug volumes of low cost goods to a broad target market and the goods they are selling have mass appeal. Primark’ biggest high street competitors are Peacocks, New Look and H&M however, Primark may also face competition from out of town retailers such as Matalan and also supermarket own brands such as George at Asda and Florence and Fred at Tesco. Primark may also face competition from online companies such as Everything Five Pounds.com and Rebel Rebel. Primark manages to differentiate itself from its biggest competitors by having the ability get high end fashion items onto the shelves quickly and at a
Does he want to spend more to have the opportunity to make more or does he just want to cut costs to have the opportunity to put more money in his pocket? These are definitely questions that Nemarq probably asked before accepting the position of managing director. Nemarq’s Strategy Between 2002 and 2007 One of Nemarq’s strategy was to modernize the product and also target a larger clientele who were less financially endowed. This is a good strategy because if normal working women can afford the jewelry for pleasure the company will see an increase in volume sold. In sales, higher volume at lower price can lead to more profits compared to
Womenswear is the largest sector within the market in general, clothing for women and children is worth double the market for men and boyswear. This reflects the inclusion of babywear and accessories in the 'womenswear' sector, but also the simple fact that women buy clothes more frequently for themselves and often spend more per year than a man. Primark could gather their market research in different ways they would need to define the market trends and competitive structure also identifying the main buyers of Primark. The store states “Primark targets young fashion conscious under 35’s, offering them high quality, fashion basics at value for money prices.” Primark will use first and secondary research to find out what they’re customers need and want. Secondary data could be information that already exists and can be accessed by Primark.
By having rapid timing and synchronicity, Zara spends its money on things that can help increase the responsiveness and speed of the chain. Zara can reduce inventories and forecast error by postponement of the decisions after knowing the trends. The apparel industry cycle time has averaged more than six months. For five to six weeks cycle time has been achieved. By having this speed Zara can introduce new designs weekly and every three to four weeks 75% of their merchandise is displayed, which matches the customers preferences more than competitors.
The Chief Executive of parent company ‘Pablo Isla’ wants Zara to be the fastest globally expanding brand the fashion world have ever seen and be the leader in fashion industry with affordable prices. Their business model is fast turnover rate and saavy information systems. The Company targets fashion conscious young adults,who are often willing to pay a high price. The company is twofold plan to grow in Europe and Asia by 2013 which is going to reduce the Spain sales to 20% from 31.8% in 2010, Europe excluding Spain going to give 50% to the total sales, Asia 20% and America 10% respectively. Problem: How can Inditex make itself the leader into the fashion industry ?