oscar de la rentaoscar de la renta team one jc sullivan,adam dumaresque, mitch getson, bailey...
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Oscar de la Renta
Team OneJC Sullivan,Adam Dumaresque, Mitch Getson, Bailey Penney, Jason Khoury,
Jennifer Kerr
Agenda
Firm Overview
External Analysis
Internal Analysis
Strategic Alternatives
Decision Matrix
Implementation Plan & Contingency Plan
Firm Overview Oscar De La Renta
Primarily stand-alone single brand
Current Strategy: High price, differentiation
Intensity of Rivalry: High
Recommendation: Capacity expansion- differentiation
External AnalysisStrategic Group Map
Low Price Price High Price
External Analysis Strategic Group Map
High price, low differentiation
LVMH : high price high product reach
CK: lower price low product reach
Remain narrow in product reach
Internal AnalysisValue Chain
Channel selection: Strategic channel selection helps us market our product Premium prices can be charged to certain channels
Pricing: High prices helps us create value without cost
limitations
Advertising: Our niche market is an advertisement in itself Exclusive fashion shows, high-end magazine covers and
boutiques
External AnalysisPorters 5 Forces
Bargaining power of buyers high
Threat of new entrants low
Threat of substitutes moderate
Bargaining power of suppliers moderate
Rivalry among existing competitors high
Financial Analysis
From 1999-2003 was ODLR’s most successful period
Gross Profit Increased 49.8%
Ready-to-wear revenues grew 19% while licensing revenues dropped 16%
Operating expenses dropped 11.1%
Strategic Alternatives
Strategic Alternatives Capacity expansion – Cost Leadership/Differentiation New business entry – Differentiation
Decision Criteria Future growth Alignment with current strategy/core competencies Customer attraction/retention Customer satisfaction Product reach
Strategic Decision Matrix
Best Alternative: Boutique Presence & Selective Licensing – CE x D
Second Best: Expanded Licensing & Market Reach – NBE x D
Third Best: Low Price Market Entry – CE x D
Implementation Plan
Boutique Presence
Market research on boutique locations
Financing
New Product Breathe
Brand consistency
Contingency Plan
Oscar dies: High risk & High impact
Change in fashion trends: Moderate risk & Low impact
Poor economy: Moderate risk & Moderate impact
Trade embargo (politics): Low risk & Moderate impact
Rise of new highly competitive rival: Low risk & High impact
Questions
Rest In Peace Oscar de la Renta 1932-2014
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