Gucci Case Study

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Being a market leader and in addition to being in one of the most competitive fields of business, Gucci is likely to face stiff competition from new and already existing companies. The fashion industry is one of the most competitive industries due to its large market size. Additionally, trends change very rapidly thus for a company like Gucci to remain relevant, the company must be able to identify what the market wants to gain a competitive edge. Other high end companies that are giving Gucci a run for its money include Prada, Channel, and Hugo Boss (mbaskool). Prada specifically is posing a major threat to the market share controlled by Gucci by offering almost similar products (mbaskool). Increase in competition has also led to the emergence …show more content…

Associating Gucci products with the rich and famous will boost the image of the company as something unique or prestigious (Vilamor). Consumers will want to be associated with Gucci as it gives them a feeling of class and prestige. Gucci should largely employ this move to penetrate the Asian market as most consumers in those regions follow what their idols do and wear (Gucci official site). Pricing can be employed in two ways in as far as marinating competitive advantage is concerned. Firstly, Gucci should take advantage of the low supplier bargaining power and negotiate for better pricing for its raw materials (Pratap). The company outsources its raw materials from different suppliers thus ensuring that no single supplier has a significant amount of bargaining power …show more content…

If Gucci does not come up with stringent measures, the company is likely to be affected negatively, both in terms of image and profits. Although it’s nearly impossible to come up with a permanent control measure against counterfeiters, Gucci should try and reduce the quantity of counterfeits that is available in the market (Bain). One method through which this can be achieved is implementing a brand reputation monitoring software (Digital brand protection). The software monitors online platforms to ensure the brands name is not violated, misused, or violated in any way (Digital brand protection). If implemented, Gucci will be able to monitor which online platforms are selling counterfeits, the number of such platforms and the specific products that are being

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