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ELIE SAAB Case Analysis
2013
By

2/12/2013

1. What is ES’s core business? Discuss the ‘total product view’ (i.e., core, actual and augmented).

* ES’s core business:-
* Haute Couture

* Four primary product lines:-
* Haute Couture
* RTW
* Accessories
* Wedding Dresses

Elie Saab enhances its prestige in every aspect of the luxury sector.

* SIGNATURE HOTELS
2008: Tatweer/Dubai Properties Signature Hotels * U.K. BOUTIQUE AT HARRODS
2008: ‘Eveningwear’ Department, First Floor * PARFUM ELIE SAAB
2009: 10-year fragrance and cosmetic license contract. * LUXURY YACHTS DESIGN
2010: Weaves’ International Ltd. And Oceanco * FLAGSHIP STORE IN DUBAI
2010: First flagship store in the Gulf region, The Dubai Mall

2. Complete the SWOT analysis. What is ES’s competitive advantage? Strengths

Member of the Chamber Syndicate de la Couture
Direct ownership of its stores except Dubai (for local expertise) One of the few certified « Couture » house
Trust and loyalty of stars and royalty
| Weaknesses

Weak presence in multi-brand shops
The dilution of the brand into many activities (yachts, hotels…) and the plan to expand even further Still low sales in Asia, USA and Russia |
Opportunities

The rise of the number of World High-net-worth individuals (HNWI) and of their wealth, especially in Asia The Asian market
Huge potential in Asia not yet fulfilled

| Threats

Trend : To mix luxury and affordability
Trend : people tend on dressing more casual
Party ladies are no longer high-class aristocracy but new-world billionaire
|

Elie Saab’s competitive advantage
* The ultimate personalized experience provided by the brand for Haute Couture customers. * The personality and know-how of the designer Elie Saab
* Elie Saab really applies the principles of Haute Couture.

3. In what stage of PLC is the company located? How has the company’s positioning and differentiation strategy changed over time?

* STGAE OF Product Life Cycle

* Haute couture : Maturity phase.
* Elie Saab has a great expertise in this activity.
* Sales are hight but tend to stagnate.

* Ready-to-wear & Accessories 
* Sales are in constant progression.
* More recent activity in Elie Saab portfolio.

Positioning and differenciation
* At first, the brand focused exclusively into Haute Couture and exceptional custom-made clothing for super wealthy customers. * Launch of a Ready-to-wear activity to extend the portfolio More affordable and easier to produce in large volumes

A greater return on investment and turnover.
Less exclusive global situation but more accessibility and commercial attractiveness

4. What is the company’s current entry strategy? Is this strategy consistent with the company’s vision? List the pros and cons for each entry mode.

* VARIOUS MODES OF ENTRY

* Licensing
* Partnerships
* Third-party Distribution
* Company-owned Stores
Licensing
PROS AND CONS
Minimizes risk and investment.
Speed of entry
Able to circumvent trade barriers
High ROI (Return On Investment)
Lack of control over use of assets.
Licensee may become competitor.
Knowledge spill over
License period is limited | Partnerships
PROS AND CONS
Overcomes ownership restrictions, cultural distance
Combines resources of 2 companies.
Potential for learning
Viewed as insider
Less investment required
Difficult to manage
Dilution of control
Greater risk than exporting & licensing
Knowledge spill over
Partner may become a competitor. |
Third-party Distribution
PROS AND CONS
Minimizes risk and investment.
Speed of entry...
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