Introduction
This paper aims to examine the ways and strategies that can be helpful and supportive for Gucci Company to increase its competitive advantage in the market and to enhance its product life cycle. The most important thing about Gucci Fashion brand is that if offers throughout the EU and the important capitals and cities around the world its franchise system. The Gucci franchise system offers a comprehensive service covering all aspects of product marketing and franchise management so that a small business can devote all their energies exclusively to maximize sales. Gucci provides deposit franchises in the genre. Thus, the franchisee only assumed as a percentage of daily spending what sold without risk of stock investments or loans and returning the remaining gender at the end of the season no cost.
Gucci is always aware of the latest trends by providing a complete, comprehensive, and combinable stocked collection. Powered by a system reset "just in time" with new items weekly. Try advise continuously in the exhibition and sale, through regular attendance of professional product and merchandising, as well as how their sales teams and management. It also has an exclusive project of decorating your store. The strategy followed by Gucci to have become the second Spanish textile manufacturer based on three aspects. The first is the team motivated, entrepreneurial and integrated into the dynamics of the company. Secondly produce a product aimed at the type of defined: Woman looking for products to high average quality fashion at good prices. The design although it is one of the key success factors, it is also very important. And finally, the third fundamental aspect of the proper functioning of Gucci, is its technological and logistical apparatus, developed, own products. Looking at the above shared information it is very much important to make a critical analysis about the product life cycle of Gucci and different ways of improving it along with different ways of gaining the competitive edge in market (Mazzalovo, 2008).
Background
It has been seen that the standard of Gucci remained unchanged for around fifty years. The main area of critiques has always been the way Gucci captures the market. Gucci clothing somehow is not showing any improvement in its product life cycle. The product range of the Gucci is way far away from the reach of middle class man. The fact cannot be denied that Gucci has done better in distributing its products throughout the globe so far. The major conflict is that Gucci is not concentrating on market development with new markets or possibly within already existing markets. In this paper, some of the most important recommendation will be shared which can be very much helpful and supportive for making better changes in Gucci clothing industry (Drawbaugh, 2001).
Critical analysis of case study
The product manufactured by Gucci is intended to only rather young women who like to dress fashionable textile. A current, unrestricted modern and innovate fashion. The Gucci concept established from the interaction among a product of their design, image quality, coherent and unified brand (Kemp, 1993). Dress the young, modern, urban woman for her daily needs is the formula we have analyzed, adapted and applied in all countries where Gucci is this: has been and is one of the keys to commercial success and international prestige company (Carcelle, 2007).
The price is reasonable of Gucci products. The value in Gucci is one of the most favorable. It reflects that the product is of good quality but not of extreme quality. The internal consistency shows that no price is affordable in terms of cost and performance constraints. The external consistency does see that consumers see Gucci products as a good product but not be of the highest quality. It is also true that their prices allocates its products to a particular section of the population: middle-class woman. Of course prices are also determined by competition (Auguste, 2013).
Strategy for gaining competitive edge
It is noteworthy that Gucci should reinvest all its benefits, an effort that later gave its results. At present, the Spanish fashion ranks among the major brands of the world, because although its price is lower than countries such as France and Italy, also have personality. One of the main reasons for the Spanish fashion is not progressing at the pace it is so doing other classic Spanish mentality. For the full integration of the Spanish fashion company Gucci should bet more on the evolution of Spanish designers and market of mergers and alliances (Joachimsthaler, 2010).
The company is focused on Gucci women's fashion and unique for this genre and audience not the idea of opening new markets for them as male or child since the idea of Gucci is identified with a particular concept. Gucci grows geographically create concepts that confuse people not wanting their market. Gucci is currently present in 63 countries worldwide, and its growth is dizzying. The corporation frowns competition since it promotes good results when it goes abroad. The main objectives of Gucci should still continue to open own stores around the world without losing the core values of Gucci as harmony, affection and humility. The big bet is large and important European cities. Except the U.S., where not to incur still prefer franchises for added security company (Doyle, 2002).
Growth strategies
The growth form of the clothing company Gucci is internal then uses its own resources without resorting to mergers, alliances, and another way is growing cooperation between companies. Regarding growth strategies and enterprise development include that, in the process of expansion, the firm Gucci enters the current market selling traditional products in traditional markets today including developing products in the same markets. In the second category of growth strategies that diversification is noteworthy that Gucci does not conduct any diversification as it produces new products but without leaving the "target" defined. The drawback is that they can help make money by not opening up to other markets, both related to their activity (clothing for men and children), as relating to it new products (Babu, 2010).
But what makes possible a flexible production derives in part from the high vertical integration. Integration is very high in the operations of a supply raw materials, more intensive phase of capital production process design, pattern making, cutting, dyeing, hand manufacturing, quality control, ironing, packaging and labeling, and distribution. But it is low or absent in those stages more employment-intensive process, as the final assembly of its components (currently, less than half of production) (Delaney, 2004).
These phases are outsourced workshops, cooperatives and independent, but close to labor companies that provide technology, logistics and financial support, and a high quality control and rigorous adaptation to current labor legislation and tax is required (Haig, 2004).
The main reasons for the internationalization of the company are technical, since looking for a suitable size so that the production process efficient. Gucci, we can say that since it is a multinational operates in a large number of countries (up to 63) in order to maximize your profit from a global perspective of the group (Perlmutter, 2010). In this case, manufacturing activities are concentrated in a few places where distributed to the different types of sales. As for the forms of penetration of this company, we can say that the export is one of its salient features since, as we said earlier, is the second exporter of the textile industry in Spain (Haig, 2011).
Conclusion and recommendation
All the lines of approach lead to the conclusion that the paper completely covers the area of product life cycle of Gucci. To make a study of Gucci different strategies can be explored which can be very much helpful and supportive to take the company towards the pinnacle of success. Some of the most important and noteworthy recommendations are discussed further.
Gucci should form of development before commented. Franchising is a cooperative agreement between two or more independent companies that share their resources together or not coalesce and introduces a degree of interaction with the aim of increasing their competitive advantage. Gucci’s case is a case of distribution franchise since each franchise does not manufacture the product, but only limited to distribution. Finally, the third strategy of development or growth of Gucci should be internationalization. The internal organization of the company and the culture and politics of the HR department can be summarized as human. Public relations employees work hard to maintain a positive relationship with customers and shareholders (Edjett J 2006).
They need to develop a plan to minimize damage regardless of whether the game is released with the defect or delayed addressing the defect. In order to check and assess all the flaws in their products it is recommended to make an inspection team which should be responsible for checking out the suitability of the product completely (Bastien, 2009). Hence, it can be safely concluded that the product life cycle of Gucci needs to be revised, and the above stated recommendations can be worthy in making certain needed measures to gain competitive edge in the market (Edwards, 2006).
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