Sei sulla pagina 1di 1

Gucci

In my point of view Gucci should go with multi-brand luxury goods business, a strategy that
Gucci aims to continue to follow persistently. Acquisition will play a vital role in its success.
This is the idea behind center versus diversification (multi-brand).
The Gucci Group is now a leading multi-brand luxury goods corporation, with a collection of
high fashion brands like YSL, YSL Beauté, and Sergio Rossi under its finely expertise umbrella.
De Sole Leadership is also very important because it improved business
atmosphere of Gucci and team work as well. Tom Ford has both experience and
success with the Gucci brand; he is also a brand himself. It has regained control over
distribution. This strategy allows the positioning of the brand in the industry to differ depending
on the number of brands and the number of business segments the company wants to compete
in. Its aggressive strategy accomplished through diversification. The opportunity exists in
creating competitive advantage in different business segments. There are various business
segments Gucci can venture. YSL Beauté is a successful product, the beauty product are
essential to the brand. It can use Gucci’s existing channels and experience to produce and sell to
the Asia market. It has strong global brand name that has global recognition.

The strength of Gucci is in its established, very strong brand image and international presence.
Gucci has also the ability to control its distribution channels. This is part of Gucci’s defensive
strategy in the chain value to capture the value added instead of giving it to the middlemen such
as suppliers and retailers. Some luxury companies use the strategy of focusing only on one brand
and add other business segments. The instability of its management can affect the group’s
corporate strategy and vision. Competition largely exists on how strong and valuable the brand
image has become. This is because in the luxury products market, companies can carry several
brands and business segments.
Gucci changed its strategy of carrying a single brand to a multi brand group. If Gucci go with
multi brand strategy then it’s beneficial for it. Through this it can enlarge its business. This
change makes it highly successful business in fashion industry. It manufacturing and
distribution strategy would be a great importance in its success.

Potrebbero piacerti anche