SWOT Analysis - Chanel

Angela L.

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SWOT Analysis - Chanel

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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

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Abstract

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.

Introduction
1. Chanel
2. Luxury and Fashion Market
3. Competitive Advantage and The Luxury Market
4. The SWOT Analysis
SWOT Analysis
1. Forces
2. Weaknesses
3. Opportunities
4. Threats
Conclusion & strategic recommendations

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[...] Chanel's SWOT analysis provided a window of assessment, but not an implementation plan based on Chanel's strategic competitiveness. SWOT is a static assessment - analysis of the status quo with little potential for change. As circumstances, capabilities, threats and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. Finally, SWOT analysis can lead the company to overestimate a single internal or external factor in formulating strategies. There are interrelationships between key internal and external factors that SWOT does not reveal that may be important in strategy design. [...]

[...] Imitation of counterfeiting and low-quality products is also a threat to Chanel's products, particularly in emerging and low-income markets. Online sales Changing consumer purchasing behaviour from the online channel could pose a threat to the physical infrastructure-based supply chain model. Risks of lawsuits The Company may face legal proceedings in different markets - different laws and continuous fluctuations in product standards in those markets. Liability laws in different countries are different, and Chanel may be exposed to various liability claims in the event of a change in policy in these markets. [...]

[...] 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. [...]

[...] 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. [...]

[...] Bruno Pavlovsky, president of fashion at Chanel, said it was strategic choice; it's a choice to say: 'you can see what you want on the internet, but we want you to come to the store because we think that in the store we can give you the right understanding of the brand. So, yes, we could sell handbags on the internet, but I think it's not qualitative enough and it's not the kind of service we want to offer our customers - at the moment. D. The SWOT Analysis SWOT analysis is a framework used to categorise the internal and external factors that influence the organisation's operations. [...]

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