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Hermes Case Study Business Strategy

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Hermes
In regards to average EBIT, Hermes is the second highest performer. The luxury brand offers large varieties of products with magnificence leather materials. Hermes’ capabilities are in the area of innovation diversification and customization, creating a competitive edge. Hermes, have crafted a reputation for manufacturing a unique traditions luxury goods. The painstaking craftsmanship efforts of all products has allowed them to maintain premium pricing and loyal customers globally. More emphasize on noble material and know-how has enabled the brand sustained core-value for many decades. Hermes has been able to ventilate their capability in establishing a noble brand image that persistently increases demand in a highly competitive niche market. Acquired resources have enabled the company formulate different strategies- products, strategies helped build inaccessible brand, exclusively for high profile customers – unique national identity called “French Chic”, for ladies- manufactured a traveling bag with a unique theme and an image called “Hermes is transportation”. Hermes also channel it resources to conceptualized brand extension strategy, using iconic leather materials to manufacture a customize product, whereby no other person can own such designed …show more content…

The company that is exhibiting the second strategy, established broad distribution channels under its own brand either by franchising or other form of partnership and at the same time maintain channels control and keep cost low. Company exploiting the third strategy, utilize a network of intermediaries in shipping its products to its customers by so doing, it reduces investment in facilities, logistics and human resources. (Bonetti & Schiavone

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