Chanel SWOT Analysis, Chanel, SWOT Analysis, cosmetics, Karl Lagerfeld, little black dress, Hermes, Balmain, Louis Vuitton, Gabrielle Chanel, LVMH, perfume, Bruno Pavlovsky, haute couture, fashion market, luxury market
Chanel SA., with its eponymous brand, is one of the world's best-known luxury brands. More than half of its sales come from its beauty business, which includes classic fragrances such as Chanel No5. While Chanel dominates premium fragrance rankings worldwide, it is still not among the top ten players in colour cosmetics and skincare, where it has increased its investment.
Founded in the 1910s by Gabrielle Chanel, who gave her name to the brand, the company operates worldwide. CHANEL has more than 310 boutiques around the world, located in the major capitals (New York, Amsterdam, Sydney, Tokyo, Paris, London, Dubai, etc.). It not only distributes its products in the brand's labelled stores but also in department stores such as Harrods and Neiman Marcus.
[...] In fact, the traditional methods used for a long time were based on intuition and sometimes on trial and error. In addition, the focus was on product development, and advertising was carried out using traditional advertising methods. The rapidly changing industry and business environment required a modern and sophisticated business practice in the management of luxury goods and property. This sector is undergoing significant evolution and a number of changes in direction, moving from the use of commercial concepts to e-business. Competition has also increased due to low barriers to entry. C. [...]
[...] Gaps in the range of products sold by the company. Lack of product choice may give more room for a new competitor in the market. Weak financial planning Financial planning is not done properly and effectively. The current asset ratio and liquid asset ratios suggest that the company can use money more efficiently than it is currently doing. As mentioned earlier, even if Chanel is successful in integrating small companies, the brand has difficulty merging companies with different work cultures. [...]
[...] The fiscal year 2016, the brand achieved sales of 5.2 billion euros, an increase from the fiscal year 2015, and a net income of 1.3 billion Euros. With more than 60% of its beauty sales coming from Asia-Pacific, a greater role in skincare is essential to the French company's strategy. Chanel can maintain its leading market position by carefully exploiting the SWOT analysis. SWOT analysis is an interactive process and requires effective coordination between the different departments of the company such as marketing, finance, operations, information systems, management and strategic planning. B. [...]
[...] SWOT Analysis A. Forces As one of the leading organisations in its industry, Chanel has many assets that allow it to prosper in the market. These assets help not only to protect market share in existing markets but also to penetrate new markets. Strong Brand Image The Chanel brand focuses on timeless and classic designs that are highly recognised. The Chanel logo is also a recognised icon. Strong Brand Portfolio Over the years, Chanel has invested in building a strong brand portfolio. [...]
[...] Some celebrities approve of the brand such as Brad Pitt, Kate Moss and more recently Victoria Beckham. B. Weaknesses Weaknesses are areas where Chanel can improve. The brand can leverage its competitive advantage and strategic positioning to limit these various factors. Need for more investment in new technologies Given the scale of the expansion and the different geographic areas in which the company plans to expand, Chanel needs to invest more money in technology to integrate processes at all levels. At present, investment in technology is not commensurate with the company's vision. [...]
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