Tuesday, February 12, 2013

Ch. 2 - Strategic Planning for Competitive Advantage

The company vision of Michael Kors has taken it from being an American luxury sportswear house to a global accessories, footwear and apparel company for both men and women in 74 different countries. Our products portfolio have been expanded,  through several licensed agreements, with companies such as Fossil, Machron and Estée Lauder. With our mission of introducing the “jet-set, luxury lifestyle” to women and men all over the globe, we are striving to hold our brand, including our product, its technology and creativity, exemplary of the highest standard of quality. 

SWOT Analysis

Strengths: Our design vision is led by the world renowned, award winning designer, Michael Kors. The solid foundation we built for continued long-term global prosperity and best-in-class growth metrics has our luxury lifestyle brand in rapid advancement.  Michael Kors is the youngest man and company to receive the CFDA Women’s Fashion Designer of the Year Award, the CFDA Men’s Fashion Designer of the Year Award, the ACE Accessory Designer of the Year Award, and the CFDA Lifetime Achievement Award, along with other awards. We have the fastest growing accessory product category in the global luxury goods industry. Other strengths include: strong relationships with premier wholesale customers, growing license segment, and preparing to take share in the growing global accessory product category.
Weaknesses: Recessions in the general economy can greatly affect consumer spending habits which negatively affects purchases made towards the accessory, footwear and apparel industries. Profitability can decline in this highly competitive industry. Our competitors include, among others, Coach, Burberry, Ralph Lauren, Hermés, Louis Vuitton and Prada. Being a smaller company who is not as diversified as others, we will not be able withstand any periodic downturns to our accessory, apparel and footwear industries.  Our products may not be innovative enough to meet the standards of the rapidly changing fashion and retail trends.
Oppotunity: Michael Kors will continue to increase brand awareness both in North America and internationally by opening more stores in predominant areas, semi-annual runway shows and growing our online advertising exposure. The retail store base will be expanding continuously both in North America and internationally as well as the wholesale business and comparable store sales.
Threats: The departure of our founder, executive management and key employees will have an unfavorable effect on the company as a whole. Being a part of the ever-changing fashion industry, creativity may not favor our company compared to our competitors. 


Strategic Analysis
Michael Kors strategy make sure that every time a customer comes in contact with our brand through our visual merchandising and communications to receive a consistent message of our creative image and our creative marketing, thus, drawing the customer in.

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