This website uses cookies to ensure you have the best experience. Learn more

Gucci Case Essay

933 words - 4 pages

Gucci Business-Level and Corporate Strategy During the late 1990’s, Gucci portrayed the characteristics of a firm with a differentiated business-level strategy. Gucci provides value to their customers with high quality luxury goods which consist of unique product features in relation to their rival competitors. One example of Gucci’s distinct quality is the prestigious image of their brand name using the famous “GG” logo on their items. Gucci is a successful firm in the luxury goods industry with many resources and capabilities that differentiate them from other companies within the industry. The first resource is the management team of Gucci following the ...view middle of the document...

The third resource Gucci has developed is its manufacturing and logistics capabilities. Gucci has a highly flexible production system built on three pillars: skilled artisans, advanced technology, and efficient logistics. This system possesses valuable, rare, and non-substitutable characteristics. By developing a loyal supplier base with complexity and product quality control, Gucci cultivated an attribute that gives them a sustainable competitive advantage. Gucci should develop a website and begin using the internet as a distribution channel for its line of products. At the time of the case study, the retail industry was exponentially growing in sales via e-commerce. This capability would be valuable for the Gucci firm because they are failing to attract consumers that are too distant from a distribution outlet. The internet grants access to billions of people internationally and products can be shipped directly from the warehouse to the customer without being placed in store inventories. Gucci’s value chain is very well suited for its business level strategy. When Gucci reorganized the company, Tom Ford and DomenicoDe Sole immediately addressed the Porter Value Chain and began repositioning the company. One of the first steps in turning the company around was overhauling and streamlining inbound and outbound logistics to decrease costs, increase productivity and maintain high quality. Also, they nearly doubled their marketing budget and launched a new advertising campaign to develop and promote their brand image across the globe. De Sole and Ford altered Gucci to correlate the firm’s value chain with management’s strategy of differentiation. Gucci should avoid using vertical integration as part of its operating plan. Gucci has developed tight control over its suppliers by implementing a strict quality control program and maintaining manufacturer loyalty. Vertical integration has also proven costly for...

Other Papers Like Gucci Case

Marketing Plan: Gucci Essay

520 words - 3 pages Chosen Brand: GUCCI Company brand positioning via consistency/interaction Gucci’s brand position is catered to higher end clientele, conveying a sense of exclusivity and high quality. Magazine photos often show slim, good looking models wearing Gucci products in various exotic poses and locations (eg, by a greek sculpture). The caption is always visible, simple, and displays the word GUCCI in large, bold letters. GUCCI maintains the same

Gucci - Global Luxury Goods The Essay Analysis Gucci As A Global Provider Of Luxury Goods From A Marketing Point Of View

5055 words - 21 pages Michel et Augustin Cookies: Culinary Adventurers Competing Against Food Industry Giants 03/2014-5757 This case was written by Hernán A. Bruno, Assistant Professor of Marketing, and Hilke Plassmann, Assistant Professor of Marketing, both at INSEAD, based on an independent study project by Felix-Antoine Joli-Coeur. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling

Marketing

1036 words - 5 pages Part 1: Case Study 1. Examine further the “2011 Ranking of Top 100 Brands.” Classify these brands while considering the product category/sector and the country of origin. Can you detect a pattern? For example, do you see that strong players in the automotive sector emerge largely in Western Europe? Yes. I could find some patterns about ranking of top 100 brands. First as this question mentioned, Western Europe has strong automotive section

Strategic Management

6893 words - 28 pages earn the same level of profitability   * Firms behind the efficient frontier can survive, but less likely to than firms on the frontier    Case Notes:  * Which point on the efficient frontier should Gucci move to on the efficient frontier? (this is the major question during 1994 when Gucci was in financial difficulties)  * Huge cash flow problems in 1994, major layoffs, closing down stores  * Critical success factors to

Brand Extention

4404 words - 18 pages equity are financial services, over-the-counter drugs or herbal remedies, and high-end sporting equipment. In each of the examples, consumers have significant investments in the products (money, retirement funds, one’s health), but lack the knowledge to undertake a critical evaluation themselves. Selected Case Studies. Weight Watchers – Begun in 1963 as a support group in Brooklyn, New York, Weight Watchers has developed expertise through

Eng100 Ethics Essay

1702 words - 7 pages Devika Mathur ENG100 Ryan Bloom 10 April 2013 Baby’s First Word: Designer There was once a time when the term designer was used only in terms of style and fashion. It was a choice between brands such as Gucci, Prada, or Armani and never a choice between disabilities, skin color, or gender. It is sad to say the word designer no longer applies to just materials anymore, it’s reached a new level; genetics. There is nothing ethical about being

Global Issues

976 words - 4 pages . Closing case 1. making the movie and use the culture difference, letting people know what’s the culture influence. 2. taking a moral or legal approach, the normal American way, simply won’t work. The courts will often find in your favor, but the compensatory damages will be low and may not even cover your legal costs. And you won’t truly stop the problem anyway. Going halfway in changing your pricing strategies, as Time Warner did, won’t

Ethics for Prosecutors and Defense Attorney's

1180 words - 5 pages where they found drugs cash and a pair of Gucci boots. White admitted the drugs were his and faced a minimum 20 years in a federal prison, but rejected a plea deal arranged by Daum. Daum became desperate for a win and conspired with White, his girlfriend, and relatives to focus the blame on someone else. Staged photos, lease agreements, and a trip to New York by White’s girlfriend were presented as real in order to help the case; which was rife

Gm 520: Business: Its Legal, Ehtical and Global Environment

1884 words - 8 pages Prada, Gucci, and Coach handbags but are priced much lower. The brand labels on the bags say "Pardna," "Guchy," and "Coaching." The prices are about 65% less than the typical brand-name bags. If the owners of the Prada, Coach, and Gucci names sue Target for palming off or counterfeiting, what would they need to prove to try to win? Do you think they would win? (short answer) (Points : 15) 3. (TCO C) One summer, David Baxter and

Decision Making

3944 words - 16 pages counterfeit products straightaway upon discovering them. Nonetheless, this system is not without its flaws as in most cases only a small portion of goods are inspected for counterfeits (OECD, 2007). The third legal measure LV should utilise to battle counterfeiting is to monitor eBay.com or other online auction sites (Amazon, ioffer.com). In this case, brand owner (LV) has an opportunity to inform eBay of listings for fakes by joining VeRO

Marketing Plan

2152 words - 9 pages be brought back by the date where the renting period ends. The deposit will be as high as 50% of the actual sales price of the item (Mc Killip, T., 2010). In case of damage of the good - deposit doesn’t return. 9. Sales channels Speaking about sales channels, the first in the chain of Sales channels will directly manufacturer, then the item goes to retail stores (such as Gucci, Dior, Hermes, Polaroid, Ray ban, etc.) Then our company is buying luxury goods in these stores. And we rent luxuries, so the relationship between our company and the people who take to rent - return.

Related Essays

Gucci Group, N.V. Case Essay

1748 words - 7 pages Case, Gucci Group N.V. (A) 1. Map competitive positioning of different players in the luxury goods arena and state who is best positioned and why? The luxury goods arena is a highly competitive industry in which companies must position themselves with both objective and subjective differentiating factors. Although humans are usually rational buyers when it comes to commodities and the necessities of life, much of this logic is thrown out when

Gucci History Essay

840 words - 4 pages in the case. However, the hit man had been sloppy in his execution, and the police soon picked up him and several accomplices – and sensationally – Maurizio’s ex-wife, Patrizia, who was said to have ordered the execution. She was eventually convicted and sentenced to 29 years in jail for the crime, and maybe the Fates had finally decided that the Gucci business had suffered enough, for since that time, it has not only survived, but prospered!

Gucci Strategy Essay

859 words - 4 pages SWOT Analysis of Gucci Strengths The strength of Gucci is in its established, very strong brand image and international presence. Gucci has also the ability to control its distribution channels. This is part of Gucci’s defensive strategy in the chain value to capture the value added instead of giving it to the middlemen such as suppliers and retailers. The company has also increased the number of their Directly Operated Stores (DOS) as part

History Of Gucci Essay

1044 words - 5 pages 92 Years of History of Gucci (1921 – 2012) 1920s In 1921, Guccio Gucci opened a leather goods company and small luggage store in his native Florence. Though his vision for the brand was inspired by London, and the refined aesthetic of English nobility he had witnessed while working in the Savoy Hotel, his goal on returning to Italy was to ally this classy sensibility with the unique skills of his native Italy. Specifically, with the