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Case study: Bulgari a Diversification Strategy

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  1. Introduction
  2. Analyze of the ?luxury branded? hotels
  3. Analyze of the Bulgari's brand platform
  4. SWOT for Bulgari Hotels and Resor
  5. Recommendations on the he Hotels and Resorts strategy in the years to come
  6. Analyze of the consequences of this diversification strategy on the brand Bvlgari
  7. Conclusion

First, we have to distinguish two different types of competitors. The luxury brands, whose core activities are jewelry, watches and other personal goods, and invest in hotels don't have the same objectives as brands for which hotels represent the principal activity. If we consider Bulgari, hotels roughly correspond to only 1.5% of its revenues. Concerning others brands like Versace or Armani, it doesn't exceed 5% of the revenues. Therefore, again, we can't put in the same package those two types of brands. Even if a new one is in construction and is supposed to open in Dubai within the next two years, the brand has only opened one hotel for the moment located on the Gold Coast in Australia. It has been opened in September 2000 and is told to be the world's first fashion-branded hotel (this is what is written on the official website). The brand has decided to make a joint venture with Sunland Group, which is an Australian development headquarters. The Palazzo Versace Gold Coast is proposing 200 bedrooms and suites.

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