SpellBrand®, 2014 Miuccia Prada: From Politician To Fashion Designer! This is useful in estimating the financial strength and credit risk of the company. Innovation is rapidly increasing internationally and especially in industries that use technology. Prada The Italian fashion house, Prada, founded in 1913, specializes in luxury goods. Timeline 1913 Mario and Martina Prada founded a luxury goods shop in Milan, known as Fratelli Prada. The analysis of the strategy formulation and implementation evaluated in the report has empowered one to create two short term and one long term recommendations; rigorous cost management, strengthening of processes and focus on product excellence, respectively. Threat of New Entrants Low - Prada has extremely high brand loyalty, high awareness of all customers and continues in innovation through stores and products. The importance of culture for Prada is also supported by Liedtka 2000 whom argues that the key purpose of strategy is to create a focused space that allows desired activities, relationships and behaviours to flourish.
To focus on product excellence would be highly feasible, consistent and advantageous as Prada are a high luxury brand and have been since its establishment. Although at first it would be difficult to cut losses and implement the strategy, the intense cost management would be feasible to Prada as they are still a highly respected organisation therefore sales would still be arising; giving a suitable refining strategy. By adopting the decision lens, Prada will gain an advantage of encouraged leaders knowing where their main focuses lie and where their highest impact is throughout pessimism. Anon 2014 Investor and Analyst Day. Although a problem, many rival competitors have a similar problem such as fake Burberry, Chanel and Gucci. If you want to know more or refuse consent to all or some of the cookies, By closing this banner, scrolling this page, clicking on a link or continuing browsing in any other way, you will agree to use of the cookies.
One would highly indorse as a long-term strategy that Prada should nurture their innovation skills. Quickly, the Milan store was favoured with Italian aristocracy and was appointed to the royal household. Value Prada has many products and attributes of high worth that provide high rivalry in the luxury industry such as the leather line and their tourist attraction flagship store. Market Share of Competition: Prada Usa Corp. Therefore, the first short term recommendation will be rigorous cost management.
This timeline depicts the net sales of Prada worldwide from 2013 to 2017. In winter, however, the flagship store in Paris had no evidence of winter attire on display yet, both Gucci and Louis Vuitton inclusive of promoting summer collections had boots on display also; Gucci extended the displays so far as fur-line models. In 2017, Prada generated global net sales of about 3. Furthermore, a final conclusion will be produced that will be drawn as a result of the analysis conveyed through previous sections of the report. Supplier Power Low — Moderate: Prada has exclusively high quality products inclusive of external and internal suppliers. While some companies compete with neighboring businesses for customers, other companies may compete to attract skilled employees. Innovation Due to an advance in technology, customers have become increasingly more demanding due to the increased accessibility to brand information and new product designs, but also happy to find an alternative brand if there is a lack in innovation; especially in fashion.
In some cases apparently high growth rates may be caused by data that weren't available in previous years. These academic theories are significant to the report as they provide credible analysis of the overall strategy, and also determine potential short and long term recommendations for Prada; as a supposition adapted for the critical discussion and analysis of the future strategy of Prada. Over the past couple of years, Prada has seen a steady decline in its global net sales, and. Nevertheless, the strategy of concentration on same-store sales has produced success for some luxury brands for example; it was revealed after Louis Vuitton invested majorly in new product types via Nicholas Ghesquiere, they received a strong rebound also halting the opening of more stores. Thus, main strategy was stock actions and cooperation.
Largest Competitors A competitive analysis shows these companies are in the same general field as Prada Usa Corp. This also enables employees to make the most of specific local characteristics in order to improve the business as an ongoing process and to also achieve integration between central and subordinate parts of the business with a whole focus. Although this may seem unfeasible and at a disadvantage due to costs, the suitability to Prada is extremely high and would put the brand at a complete advantage. With excellent strategic location, the brothers were linked in upper class retailing since the opening in 1877; affecting factor that helped Prada claim premium market positioning according to Moore 2010, p. For example; a location was bought for over 20 million euros, outbidding Apple and Gucci, to build a menswear store opposite the 19th century Galleria Vittorio Emmanuelle shopping arcade. Following, the report will analyse the strategic challenge behind Prada.