oscar de la rentaoscar de la renta team one jc sullivan,adam dumaresque, mitch getson, bailey...
TRANSCRIPT
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