Recommendations of Bottega Veneta: Stealth Luxury Case Help

Home >> Essec Business School >> Bottega Veneta: Stealth Luxury >> Recommendations

Recommendations of Bottega Veneta: Stealth Luxury Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in international markets without any reduction in its local earnings and any wear and tear of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Bottega Veneta: Stealth Luxury Case Analysis Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the worldwide existence of the company. The closing of domestic shops could extremely impact the incomes of the firm as above 90% of its shops are situated locally and closing those stores would ultimately lower the profits of the company. The business has a long term market position in US which can not be created soon in the brand-new markets. The choice would assist the business to broaden in worldwide markets in addition to the removal of issues raised in its regional markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Elimination of concerns related to variety.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Bottega Veneta: Stealth Luxury Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe danger to the market share of business. In this situation the business could consider introducing Click and Recommendations of Bottega Veneta: Stealth Luxury Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Elimination of the fantastic shop experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the business. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Increase in income from international markets.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.