Porter's 5 Forces analysis of Gucci Positive Luxury Case Analysis

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Porter's 5 Forces analysis of Gucci Positive Luxury Case Study Help

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Gucci Positive Luxury Case Analysis could be performed to design different strategies utilizing the strengths of the company to obtain chances, conquer weak points and to reduce the risks. It might likewise be utilized to evaluate that how particular weak points resist specific chances and increase the hazards. The strategies prepared utilizing the Porter's 5 Forces analysis of Gucci Positive Luxury Case Solution are provided as follows;
• Utilization of strong international brand name position and financial resources in broadening towards possible markets.
• Distinct brand experience could help out the company to much better position itself in new markets.
• Resistance in expansion in the possible worldwide markets encouraging variety.
• High prices restricts the growth in various Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional methods of marketing and the unique brand name experience might be used to minimize the danger from prospective consumers.
• Rigorous appearance policies could resulted in the customer shift towards Victoria with high social responsibility.
• Minimal target audience might led to a decline in the overall market share of the company.
These methods might assist the company to improvise its market position and be at the leading position in the market.

Financial Analysis


Monetary analysis for Porter's 5 Forces analysis of Gucci Positive Luxury Case Analysis might be performed to evaluate the availability of funds to the business that could be utilized in growth towards international markets. The financial position of the company could be examined by using the data given in the case Exhibit 1. The ratios that could be thought about in monetary performance analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the business has a reasonable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net revenue margin does not appears to be potential and the business should put efforts in increasing its incomes together with reducing its operational expenses to increase its revenue margins.

Porter's 5 Forces analysis of Gucci Positive Luxury Case Analysis

Segmentation

Many of the company's Brick and Mortar shops are located in US including above 500 shops in nearly each of the state of US. The business has likewise an international presence in 8 various nations with its greatest number of stores situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in worldwide markets that is probably the 10% of its shops in the United States.

Targeting


The company targets its clothing brand to the young, high and attractive teens and kids that are considered to be cool. This targeting policy is responsible for various distinctions in the company related to its competitors. For example, the business works with great looking men and women for its shops and follows a strict appearance policy to preserve destination of attractive people towards its stores and offer a special brand name experience.

Positioning


The company has actually positioned its brand name as a high-end brand targeting only a particular market section. The business with its non-traditional methods of marketing through designs and agents posters its brand name image as a luxury clothes brand name targeted to the cool and good-looking characters in society. This market position attracts numerous elite people towards the brand but it harms the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Gucci Positive Luxury Case Help deals with a lot of competitors in the market with the existence of various number of competitors in the market. Gap is likewise thought about to be a prospective rival in local as well as in global; markets as the company is considering to shift in the worldwide markets.



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