Case Study Gucci
Also, we want to check its goals and objectives if the company has been meeting it. Lastly, we want to make valuations that can contribute to the growth and development of the company.
Vision and Mission Vision Become one of the leading luxury groups providing excitement and glamour to a global heterogeneous customer base. Mission To become a group leader in the luxury market at world-wide level through: putting into effect and maintaining.
The Business Model of the Company Gucci focuses on what our brand name stands for-fashion. After our fall, we stopped settling for mediocrity and started revamping not Just our stores but also the collections we sell In our stores. This catered the needs of our fashion-conscious target markets.
Also, we nave Wallace ten range AT products Tanat we sell. W included scarves, fur coats, and the likes, and in return, a wider range of people patronized Gucci. Moreover, among the things that we changed for good is our pricing. We lowered our prices on leather goods by 80%. This was done to offer the customer good value out of the products they purchase.
Our strategy in advertising ND marketing focused on giving the company’s image a full renovation. This was done to establish the brand after the changes it has undergone. Afterwards, we have released other ads that focused on our products. The establishment of our revised Gucci would not be complete if we had not seen to it that the products we sell have superior quality. This was made possible through selecting partners and suppliers who were able to offer technical and financial support, investing in the latest technological innovations, employing skilled artisans and establishing efficient egoistic.
Additionally, Workers, both from the suppliers and our own, were given provided with training. As to distribution, we put more effort in strengthening the network of the stores that we directly operate. Cognizant to this, we started renovating our stores, making it look more modern and more sophisticated than the older-looking stores before. Furthermore, although we have already launched a Gucci Website, we have yet no plans of engaging with e-commerce because we believe that we can sell very well even without the aid of an online distribution system. Also, we o not consider online selling because we would like to maintain the exclusivity of our products.
Competitive Advantage Designs are timeless, meaning even though the product line will not be sold out this season, it is possible that it could be sold out next year.
Gucci was able to channel market demands by creating a merchandising function which analyzes customer data. Lower prices than that of Hermes and Channel but at par in material and craftsmanship. We made it possible for wide range of people to enter our world while preserving Gucci luxury status. Top management who work really well together. Highly flexible production system built on three pillars: skilled artisans, advanced technology, and efficient logistics. Tom Ford, being the star, lives to what Gucci is all about. He developed this ethos of Gucci lifestyle which is on the cutting edge; he gave it this sexy edge. And he made clothing that exactly cohered with that.
Problem Statement Since the Gucci Group again made acquirement’s, how can they improve the quality of the management and the business strategy with their new acquisitions considering that they have failed on managing a lot of segments before?
Company Goals and Objectives To create an international luxury fashion brand Create an arresting image of a world you wanted to be part of To offer its product to wide range of people To focus on fashion To offer a superior product that represented good value for the customers
Areas to Consider/Key Results Area H. Alternative Courses of Action Alternative Cease further acquisitions for the meantime and focus in maintaining growth in our existing segments and brands Alternative 2.
Evaluation of Alternative
Alternative 1 Evaluation Gucci is currently in the stage of transition.
Making risky decisions such as further acquiring other brands after our recent purchase of YES Couture, YES Beauty, and Sergei Rossi would be unwise. This alternative course of action suggests that we stop, in the meantime, purchasing other brands and focus on developing the existing brands that we hold so that our growth would be sustained. Afterwards, once the company goes out of transition phase and once we are positive about the sustainability and growth of the customer bases that we currently hold, we can then continue considering other brand acquisitions.