Question 2 Elie Saab is a huge company having close to “150 employees and is situated in 3 major locations. 130 of them are present in Beirut, 15 in Paris and 5 in London ” (Saab , 2012) Their headquarters is in Beirut as their owner is of Lebanese origin. They have their main atelier present there. All corporate communications and public relations takes place through their Paris office. “Sales related activities takes place in London. They have participated in lot of fashion events like RTW collection in Paris in 2005, RTW collection in Milan, fall/winter haute couture show in 2003.ES had a strategy to globally expand by direct ownership of stores and through flagship stores also. In June 2010 ES opened their first flagship store in Dubai …show more content…
“Flagship stores are stores which are mainly used to showcase the brand of the items and do not fully focus on profits and revenues” (Joy , et al, 2010).ES thought of using these flagship stores as an entry mode especially for strategic locations such as Paris, Beirut and Dubai. These locations had their own importance as they were the hub for fashion house and helped in company’s market development. Apart from flagship stores the company also had direct stores in Beirut and Paris to ensure that it has full control on these stores and could market their products in these stores. “ The advantage of having direct ownership is that this falls under your custody and you don’t have to depend on external agencies to promote your products” (Brondoni and Fabio , 2010). The quality of the product will not be neglected. The other advantage of having your own store is that you don’t have to compromise with the profit margin and its up to you to decide what profit margin you would like to go with for each item. However one of the disadvantages of having direct store ownership is that you will have to bear the overhead cost and at the same time also you may not be having enough knowledge about the local market. Direct stores also involve hiring of right staff, their trainings and …show more content…
The advantage of these kinds of partnerships is that you can use your partner’s established platform to promote your products. The biggest disadvantage of indirect distribution is that the quality of the item no longer remains in the principal’s control. The pricing also would vary from store to store and this may not be preferred by global customers. An advantage identified in indirect distribution is faster time to market. Hence the customers can buy the items more rapidly and this saves time and money of the principal company. In my view Haute Couture items have to be promoted through direct store ownership. But items like RTW; Accessories could be sold in flagship stores or through third party agents as these are faster moving items and can be reached to a large mass of customers through these strategic alliances. Currently ES focuses only on richer community of the society. Their products are for people who have a high end taste of fashion and are ready to spend a lot on fashion. Their products cannot be afforded by middle class people. In my view ES should stick with their theme of high end luxury goods rather than affordable goods in luxury market. The reason being that ES is an international brand and is known from ages to have served high end fashion to the rich mass of
Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and
Nordstrom is one of the top retailers in the United States. With a solid brand image and a sound financial situation, Nordstrom is relentless in their expansion in the US, and are beginning to expand into international markets. Nordstrom takes pleasure in providing state of the art client support and having experienced sales people. In order to hold their position as the most successful high-end retailer in the United States, Nordstrom must continue to figure out ways to improve their brand image and customer satisfaction. Nordstrom’s current business working strategy is successful but I believe there are a few ideal solutions that the organization could apply to further enhance the organization. Due to the aggressive characteristics of the fashion retail store market, it is crucial that Nordstrom preserves an aggressive advantage providing the highest level of customer support as possible.
Disadvantage: increase the expense of leasing and managing retail stores; widely distribution will produce more opportunity to competitive with competitors directly, for example, they are located in the same mall.
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
You are a young and curious child of about fourteen. You wake up and your day begins just like any other, but today isn’t just like any other. Today your life changes forever. You watch your family and friends be gathered up and stuffed into trains, not knowing if you will ever see them again. You are lucky, if you can call it that. You are young and strong, you are to take the gassed bodies of others and send them into the furnaces. You then watch you father die, everyone you have ever loved you now believe to be dead. After you are finally liberated would you have the courage to tell your story to the world, would you be capable of recalling those frightful nights and wrenched mornings. Would you be able to remind yourself of the tortures you faced, and of the loved ones you lost, everyday of your life? Why do historians find Elie Wiesel important, you ask? How has he impacted our world today, you ask? Elie Wiesel did the impossible--he wrote about his experiences life, both during and after the holocaust, his imprisonment in Auschwitz, and the loss of his family. Not only did he speak out about the Holocaust, he spoke out against all genocide--against all acts of one race against another. He promoted human rights and helped keep the world from repeating the Holocaust, from repeating its mistakes.
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
By putting the warehouses in strategic locations, you provide better access to those customers in more remote locations. By taking advantage of this, Under Armour will not only expose itself to new customers, but will be able to continue to dominate the athletic performance apparel industry.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
The four companies shown above have very different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This made Inditex gain a competitive advantage, which is quick response to the market requirements. On the other hand, The Gap and H&M have a different business model. They owned most of the stores, but outsourced all the production. Benetton had a third business model. It invested heavily in the production, but licensees ran its stores.
Eliezer “Elie” Wiesel was a Holocaust survivor, infamous author, and political activist, born on September 30, 1928 into a Jewish family in Sighet, Romania right before the beginning of the Nazi-Era. Living in Germany in 1940 was unfavorable to everyone but especially the Jewish population. While the Aryan and non-Jewish citizens of Germany lived a reasonably comfortable lifestyle during the early stages of war. However that was not the case for the Jews, living in small ghettos in German cities and reduced job opportunities are just a few of the ways oppression was manifested against the Jews in the beginning of World War II. The discrimination only worsened as the war intensified.
“Despite worldwide softness in the sale of luxury goods, LVMH has cemented its position as the world’s largest and most profitable player in the category. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Their objective is to be the leader in the luxury market, continuing to transmit elegance and creativity. This poses some major challenges, the main one is to keep being the leader in the luxury market through a sustainable growth. The main problem to achieve it is the high dependency on three main countries, France, Japan and USA. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.
...t in both direct and indirect ways. Direct sell will include, sell in online forums or use direct mail to reach our customers. When selling directly, we can take the time to showcase our product’s distinct attributes. Before turning sales over to a distributor, we will build a base of direct sales to prove the product will sell. Using an indirect approach, we will persuade stores to carry our products. While more time-consuming, approaching retailers in store or at trade shows gives us more control over how our product is displayed and how it’s presented to customers. For indirect sales incorporate a middleman in some way or another. A distributor’s functions include stocking, ease of ordering and quick delivery with no pioneering sales efforts. Intermediaries have expertise and contacts, but they may require minimum order quantities and an established sales record.
H&M is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53 countries. The company does not own any factories. H&M outsources production to network of 800 independent suppliers; 75% in Asia and 25% in Europe. In order to increase the efficiency and productivity of its supply chain, the company strategically locates its network of 20 to 30 production offices close to its suppliers. According to Stockholm Newsroom, the pretax profit of the company for the month of June to August of 2013 is $907 million, which indicates an 11 rise in turnover (Pollard, 2013). The company continuous development plan facilitates its goal for both brick and mortar, and online stores expansion worldwide. The target segments for H&M, a category specialist store, are trendsetters and fashion/money conscious males and females ranging from 16 to 40 years old with income ranging $15,000 to $60,000 annually.
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...
Louis Vuitton, Chanel, Gucci, Dior, Prada, Jimmy Choo, Hermes, Rolex…. These are all; luxury brands and they are everywhere. The luxury fashion market represents an important and increasing sector of worldwide retail (Husic and Cicic, 2009).