Overall performance Measurement – 8343
Bordo Ralph Lauren Corporation – Company research. Notes within the slides.
Schedule - Each of our agenda uses exactly the guide that was handed to us in order to carry out this project.
The Company – Short overview of the company.
The Fashion Industry – It is primarily based mainly about intangible property, rather than capital or knowledge-intensive assets. In addition, nowadays fashion companies are fewer affected by the condition of seasonality: indeed they will experience sales that are basically stable in the year; despite this, PRL experiences different levels of revenue in the distinct quarters, due mainly to wholesales deliveries and in coincidence with holiday break periods.
Sector Analysis – We employed the Five Forces Model to assess the functions of the market in which PRL competes in. The fashion industry is a very competitive 1, rivalry amongst firms can be high: a few competitors will be bigger than PRL, thus they also have even more resources, but nevertheless PRL is a nice strong identity and the business has a large customer base. The threat of recent entrants is low since there are strong incumbents, brand devotion in the high-price segment is usually high and access to suppliers and marketers is limited. Even though PRL has a high company recognition that makes end clients less price sensitive, the bargaining power of the purchasers is substantial as the direct consumers of the company are mainly huge department stores (and the gist of the business revenues comes from the inexpensive sector). The threat of substitutes is definitely moderate since loyal consumers tend to purchase only from them in general people may vary their purchases and in addition buy from the competitors. For what concerns the suppliers, you need to specify that PRL would not manufacture usana products itself, but instead depends on licensees and other manufacturers to accomplish this. Its suppliers are consequently manufacturers which in turn supply the firm with the finished goods. The bargaining power of suppliers is definitely moderate: while the company will not actually make anything that that sells below his company, it has to count pretty much in manufacturers and licensees; good quality suppliers will be few and there's large competition between high-quality companies to find such reliable suppliers. On the other hand nevertheless, PRL makes in many distinct countries, largely outside the US, thus working with many different suppliers, and this lowers the suppliers' strength in bargaining. Altogether they have three hundred and fifty manufacturers, with none of which providing much more than 8% of total production.
Internal and External Elements – To obtain a better comprehension of the competitive environment from your firm's point of view as well as of firm-specific resources and capabilities, we conducted a SWOT analysis. The corporation has successfully grown and expanded its range of products and brands, as well as his presence in the foreign market. The main advantages is the brand: it motivates a precise way of living and virtually everybody knows that: this excessive brand awareness and recognition, as stated above, make the end consumer fewer sensitive to the price. They decided to leveraging on their solid brand to be able to increase the profitability of the business and increase it simply by further diversifying the range of product offerings and apparel brands, which can be divided into Attrazione brands and Collection brands (the many expensive). The firm deals with to have substantial margins about its various brands, particularly in the Collection brands. They also have not a problem in being able to access the end buyers as their existence is noticeably high, thanks to what they contact " multiple channel distribution”: this means that they may have both their own stores promote to third celebrations such as shops, specialty retailers and manufacturing plant stores.
Their very own major weakness is the substantial dependence on malls: as stated over, their income depend remarkably on this kind of retail store, particularly in the US and Canada (their biggest industry, we will see...