Swot Analysis Of Handmade

800 Words4 Pages
Strengths (internal)
- Brand positioning / associated with exclusivity – 150 year heritage brand
- Hand made products with a perception of quality and exclusivity
- In house production and control over distribution
- Strong continual growth to date
- Buying power -
- Multi-disciplinary parent company (perfume, wine, jewellery)
- Low price differentials between markets – less chance of items being sold at an increased cost in markets with a retail presence
- Online presence in USA, Europe and Japan
- No product discounts - maintains the brand exclusivity
- Proactive attitude to innovation + focus on efficiency / process improvement
- Unified global presence (all stores designed centrally at LV HQ)
- LV sits within a growth industry (luxury)
Weakness (internal)
- Excess stock destroyed rather than discounted – loss in $$
- Closure of factory in India – loss of production capacity
- Handmade products = long manufacturing times and limited availability
- Unable to rely heavily on automated manufacturing processes – must keep perception of artisan craftsmanship
- Extremely rapid growth could dilute brand image – if it’s too easy to get then it becomes less exclusive
- High product and manufacturing cost – high quality component parts in all products result in high unit costs
Opportunity (external)
- Profit growth via acquisition of aligned companies targeting adjacent buyer segments
- Partnerships for increased innovation and R&D
- Expansion of product offering -

More about Swot Analysis Of Handmade

Open Document