PORTS Design Limited is a fashion company which is vertically integrated. It is commonly known as an, international fashion company. The main activity of PORTS is being engaged in the design, manufacture and the retail of high-end fashion garments and accessories for men and women.The brand PORTS' has gained global recognition by presently operating in the North American and the Asian markets.
By adopting a vertical business model and a simultaneous implementation of a differentiation process, PORTS has demonstrated the ability to maintain stable growth and to exploit opportunities to its fullest. An example is the Chinese market, where PORTS continues to retain its position as a leader. Through diversification of its product ranges such as PORTS 1961, PORTS International, and BMW, together with the strengthening of its retail distribution platform, the group has permitted itself to face the upcoming competition from international luxury brands, such as LVMH and the Gucci group.
The fact that PORTS wants to trespass into the fashionable European territory is justified by the expansion plan of the corporation and its compliance with the multi-brand portfolio objective. Through our external analysis, we infer and observe that the luxury sector is highly competitive as it aims at sustaining itself since it possesses a strong know-how and a unique style which features the European groups (wherein, LVMH, Gucci Group and Richemont are the three main actors). The internal analysis, and more precisely the BCG matrix, allows us to state that PORTS 1961 is the appropriate brand to compete in that market (considering the circumstances and the situation).Further, PORTS International is the cash cow for this investment. PORTS should find a partner to enter the market and fuel its growth. Its strengths which include the PCD distribution platform and the production process could be beneficial for one of the European actors, in exchange for receiving significant assistance in the distribution process (i.e. through the DOS (Directed Operated Stores) activity that certain luxury firms use). But this stimulus has to be supported by essential factors which are of a competitive advantage. These factors cover areas such as quality, efficiency, innovation and customer responsiveness.
[...] However if BMW decides to launch the same product line in Europe, PORTS International would be a great cash generation for this business segment too SWOT analysis Strengths Weaknesses A turnover reaching RMB 1.49 - Most of the sales turnover is billion in 2008, $218 million made in China million) with a stable - PORTS 1961 is considered as a growth rate and a healthy brand with low financial financial situation strength as against the European Manufacturing factory in Xiamen competitors and a strong retail platform is achieved(PCD) Important brand awareness for both core business segments sustained 4 partnerships: two joint ventures and two licensees) A strong know how to answer Chinese needs (Chinese customers) Opportunities Threats A weaker textile regulation in - Tough competition in the Europe luxury sector across Europe Italian and French providers - The luxury market is would be closer whimsical : the trends are European actors: A strong trend constantly evolving for diversification and - the economic crisis affects internationalization American and European purchasing An important market share to power and behavior attain : Christian Lacroix in - Counterfeit is also a threat presently in bankruptcy in Europe harder sourcing of garments: an imposition on quotas in the US and Europe since 2006 The ‘Best in class' strategy for adoption 1 Assessment of internal and external strategies PORTS financial health is in a good situation, with a high turnover and a stable growth. [...]
[...] A leading position the result of some relevant strategic initiatives 1 Financial highlights and market share The sales of PORTS barely reached $100 million in a year. Of this of them were realized in China. Three main axes were highlighted which also included the company's financial analysis. The first axis was the retail segment which refers to the PCD stores. The OEM stands for ‘original equipment manufacturer', which is typically a company that uses a component made by a second company in its own product, or sells the product of the second company under its own brand name. [...]
[...] 'BMW Lifestyle' gathered the attention of both genders (men and women) as the range was extreme ranging from clothing, bicycles, accessories and so on The company's chart and business model The Board of directors of PORTS Design Limited includes the following members: - Edward Han Kiat Tan, Chairman - Alfred Kai Tan Chan, Chief Executive & Managing Director - Fiona Cibani, Chief Executive Officer (since 2009) - Pierre Frank Bourque, Executive Vice President - Julie Ann Enfield, Non-Executive Director - Rodney Ray Cone, Independent Non-Executive Director - Valarie Wei Lynn Fong, Independent Non-Executive Director - Lara Magno Lai, Independent Non-Executive Director Audit Committee: Remuneration Committee: Rodney Cone, Independent - Alfred Chan, Executive Director Non-Executive Director (Chairman) (Chairman) Lara Lai, Independent - Rodney Cone, Independent Non-Executive Director Non-Executive Director Valarie Fong, Independent - Lara Lai, Independent Non-Executive Director Non-Executive Director The following is the company's simplified organization chart at the Xiamen headquarters: Ladies Wear Menswear BMW Ladies Wear and Menswear Co-Creative l Ian Hylton Creative Enrico Franzoni Director Fiona Cibani Director and Vice Creative Director Fiona Cibani Creative President of the BMW Export Nancy CEO and Director Menswear Department Chen Co-Creative Youco Cher Chen Director Harada- Willow Zhou(Designer) Designer Lucia Trisi - Accessories Product Development, Sampling Checo Chen / Fabric Purchasing Department Karen Luo Merchandise Roger Luo and Connie Wu / Retail Management Grace Ge / Retail Inventory Ada Zheng Graphic Design Sam Xie / Visual Design Eva Zhou Business Development - Dean Liu Accounting Department Johnson Zhang Purchasing Department Kiaser He Export Peter Bourque / Shipping Department Chen Meichun, Eileen Feng Human Resources Department Rose Du IT Department Roy Yue The organization structure of the PORTS business model is vertical in nature since a clear hierarchy is maintained. [...]
[...] Gucci Group is a tough competitor for PORTS 1961, since some brands such as Bottega Veneta, Gucci and Balenciaga have a strong avant- guardist style. Richemont is the third on the global luxury market with a turnover of 5,3 billion euros in 2008 just behind LVMH and PPR. Richemont owns several of the world's leading companies in the field of luxury goods, with particular interests in jewellery, luxury watches and writing instruments. It gathers 19 substantial luxury brands such as Van Cleef, Arpels, Montblanc, Lancel, Dunhill, Cartier and as on. [...]
[...] Introduction The aim of PORTS Design Limited is expansion. With this target in mind, the prime area of focus in this report is to provide marketing and a managerial tool to smoothen the activity of expansion. I chose this company as I was actively involved in an internship program last summer in China. The internship program focused on marketing, business events, and the management system of PORTS. It also laid emphasis on the current strategy which was very interesting. The strategy of PORTS is vital as its mission and vision is concentrated on a geographic expansion. [...]
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