Luxury Industry - Gucci vs Louis Vuitton

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<p>PowerPoint Presentation</p> <p>LuxuryIndustry</p> <p>Characteristics of Luxury Products</p> <p>Brand Symbolism ExtraordinarinessRarityPrice as an benefitQualityAccess to niche markets</p> <p>PESTLE Analysis</p> <p>PoliticalLaw and security processes to be consideredCertification and product formsTaxes to export and import luxury goods</p> <p>EconomicIndustry not affected by the crisisGrowing market with rising incomesConsumption rising in growing economies</p> <p>Social Concept of power and superiorityCreation of charities and giving back to the society</p> <p>PESTLE AnalysisTechnology High weightage given to R&amp;D, new technologies of production and raw material sourcing Promotion of the brand</p> <p>LegalPatentsIntellectual property for creation of sign and symbol of the brandPlacement of storesDcor and organization of the store</p> <p>EnvironmentLuxury goods do not adopt their products and trends to the new aspects of the environment</p> <p>Threat of new entrants : HIGHBrand loyaltyScale EconomiesCapital RequirementPotential Retaliation from existing brands/companies</p> <p>Threat of substitutes : MODERATEPrice of substitutesQuality of substitutesSwitching costs to customers</p> <p>Buyers Bargaining Power : LOWNumber of buyers relative to suppliersLevel of dependence on a buyerSwitching costsPossibility of buyers vertical integration</p> <p>Suppliers Bargaining Power : MODERATENumber of suppliers relative to buyersLevel of dependence on a supplierSwitching CostsPossibility of suppliers vertical integrationEffective Substitutes</p> <p>Rivalry among existing companies : HIGHCompetitive StructureDemand ConditionExit Barriers</p> <p>House of Gucci is an Italian fashion label</p> <p>Known for Accessories and Clothing</p> <p>Since 1921</p> <p>Family repercussions Quickly grew out of it Now owned by Pinault-Printemps-Redoute (PPR)</p> <p>Ranked 8th by Forbes</p> <p>Brand value: $9.45 billion</p> <p>j</p> <p> STRENGTH</p> <p>Widely Available (DoS)Unaffected by economic crisisDiversified and wide product rangePublic relation WEAKNESS</p> <p>Instability of managementFinancial base is weak and alarmingMass producer of prestigious goods</p> <p> OPPORTUNITIES</p> <p>Mergers &amp; acquisitionsSustainabilityDiversification in Wine and SpiritsEmerging luxury markets in Asia THREATS</p> <p>CounterfeitingStrong Competition </p> <p>French fashion company</p> <p>Since 1854 </p> <p>Most Valuable Luxury Brand</p> <p>Known for Leather Goods</p> <p>Monogram and Damier canvases</p> <p>Department stores and boutiques</p> <p>Brand value:$23.58 billion</p> <p> STRENGTH</p> <p>Brand nameExperiencePremium qualityPublic relation WEAKNESS</p> <p>DiversificationConflict of interestSensitive to economy</p> <p> OPPORTUNITIES</p> <p>Mergers &amp; acquisitionsNew consumer trendsEmerging markets - Asia THREATS</p> <p>CompetitionConsumer taste change</p> <p>VS</p> <p> STAR</p> <p> * Fragrance (G)</p> <p>*Leather goods (LV) * Leather goods (G) QUESTION MARK</p> <p> * Watches (LV)</p> <p> * Jewellery (G)</p> <p> CASH COW *Fashion (LV) *Accessories (G)</p> <p> * Fragrance (LV) * Jewellery (LV) * Ready to wear (G) * Shoes (G) DOG * Wines &amp; Spirits (LV)</p> <p> * Watches (G)</p> <p>ThankYou!</p>