Case study: Bulgari a Diversification Strategy

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Case study: Bulgari a Diversification Strategy

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Abstract

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.

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

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[...] The high levels of services make difficult for companies to differentiate one from each other. www.oboolo.com 13 Conclusion: According to the luxury hospitality market, Bvlgari has the chance to enter in a growing market (around in 2011) but also has to deal with the differentiation with the other competitors. Considering the fact that the brand has the chance to be legitimate thanks to its history, and to be marriage specialized, the company seems to have all cards in the hands. [...]

[...] The second one is located in Milano and has 95 guestrooms and suites. It is located just at the heart of the prestigious quarter called Quadriletaro della Moda. For those two hotels, Armani has decided to work with Emaar Properties PJSC (Dubaï) thanks to a joint venture. v Missoni The brand has for the moment two hotels opened in the world, but some others are supposed to be opened in the next few years. The first one was proposed to clients since 2010 in Edimburgh. [...]

[...] Renovation of the oldest Palace in the World (such as Ritz), which enables new competitors to enter in the luxury hospitality market Only few competitors in the luxury branded hotel business 3. Luxury hospitality business has grown by in Luxury branded hotels are located in the same places 5. Hotels can perfectly spread the idea of lifestyle brand WEAKNESSES 1. Look far from the core of Bvlgari 2. Saturated locations 3. The risk to do not have a clear positioning due to a too much diversification THREATS 1. [...]

[...] As a consequence, the idea to develop resorts and hotels is a clever one because it is the best achievement of the policy development. • Hotel and wedding The brand has always been well-known for its role in the wedding sector, with other luxury brands such as Cartier and Tiffany's and Co. But Bvlgari is the only one that developed its own hotel and resorts. This is really coherent because couples that want a paradisiac place for honeymoon or for their wedding can purchase all things from the brand. [...]

[...] The Bulgari jewels take shape as a watercolor or tempera drawing. The subsequent transformation of a drawing into a finished jewel is left to the skilled hands of the artisan, whose job is to produce a jewel of extraordinary softness, roundness, polish and perfection. Every product made by Bulgari is developed in order to the materials and colors that are most suitable for its creation, wearability and coherence with the Bvlgari tradition Brand DNA In this part, we will go further in the BVLGARI brand by explaining the DNA of this prestigious Maison. [...]

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