Economics and S.w.o.t High Quality

Topics: Economics, Brand, Karl Lagerfeld Pages: 31 (491 words) Published: January 11, 2015
Presented by group 15
group member
Derek
Orange
Aubrey
Angel
Yvette

Introduction
Corporation Name: Chanel S.A.
Area served : Worldwide
Foundation Time: 1910
Founder and Inventor: Coco Chanel
Headquarter: Paris France
Number of location: 310
Number of employees: 1270 ( 2010 )

P.E.S.T

Political

Economic

Social
Technology

P.E.S.T



Tax policy in Asian region



Regulations to reduce piracy

P.E.S.T


Increasing purchasing power of the developing
world



worldwide economic crisis rebound

P.E.S.T



Native Culture



Asian clients value prestige brands

P.E.S.T


Change the packaging regularly



Follow the trends of technological development closely



Growth of Online shopping due to Internet improvement



Emergence of mobile Internet

S.W.O.T

Strength

Opportunity

Weakness

Threat

S.W.O.T


Strong brand image



Strong Management



A large number of stores



High market shares in perfume and leather
products



Rich in raw materials

S.W.O.T


High quality products

S.W.O.T


High quality products

S.W.O.T


High quality products

S.W.O.T


High quality products

S.W.O.T
Karl Lagerfeld



The Chanel Chief Designer
who is leading Chanel to
another peak in its fashion
development

S.W.O.T


Strong advertising

S.W.O.T


High Price



Limited Production



Competitive market



No prices are displayed



Limited selection on Online stores



Online shopping only available in United States and no international shipping

S.W.O.T


Expand business to emerging markets



Technology



Online sale and E-marketing gaining a lot of importance



Product innovation and company takeovers

S.W.O.T


Counterfeits



Imitating Designs



Policy change



Economic slowdown and
recession

S.W.O.T


Competitors

FIVE FORCE

Suppliers

Customers

Present competitor
Substitute
New entrants

CUSTOMERS
• Number of buyers
• Level of dependence on buyers
• Switching costs
• Buyers' bargaining power is low

SUPPLIERS
• Number of suppliers
• Level of dependence on suppliers
• Switching costs
• Suppliers' bargaining power is moderate

PRESENT COMPETITORS

• Market structure
Oligopoly
• A few large luxury groups dominate
• Large number of small independent brands

PRESENT COMPETITORS


BIG THREE
In perfume field

PRESENT COMPETITORS


BIG THREE
In leather field

PRESENT COMPETITORS

• Exit barriers
Specialized Assets in style

NEW ENTRANTS
• Capital requirement
• a very high break-even point
• high salaries
• high marketing and management costs
• high investment for R&D and promotional activities



Exclusive
distributors

• Brand loyalty

access

to

suppliers

&

SUBSTITUTES
Price of substitutes
Rising popularity of middle price brands
Consumers tend to “trade down ” during economic crises

Quality of substitutes

Improvement

Increased internet accessibility

Switching costs of customers

Recommendation

Short term
Find way to lower the prices of products in emerging markets Improve its cosmetic line
Develop men’s facial products
Allocate the investment in expanding emerging market reasonably Pay attention to the fakes and may adopt technology to limit them

Recommendation

ong term

More focus on younger generation

More ideas in clothing design

More research on African market

More focus on the counterfeit and possible invest in technology to prevent it

Increase emphasis on new media

Thank you

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