Employing Strategy in a Competitive Environment

Assignment 2: Employing Strategy in a Competitive Environment

Je'neen A. Wilson, B.S.

Business 599 Strategic Management

Strayer University - White Marsh

Dr. Tony Muscia

July 28, 2013

SWOT is essential in scanning both internal and external observations for any organization. SWOT analyses both strength and weakness which are the internal behavior of the organization (Plenert). The strength and weakness are viewed along with its opportunities.

SWOT is essentially completed to form quick observations of the strategies followed by an organization. It benefits the organization to improve and remove its defects and to design a plan in order to improve the profit and aid in the strength of the organization. Figure 1 exhibits the SWOT analysis for Dame de Sac, a small handbag business.

Figure 1

Politics and economies can be primary sources of threats to a brand in the fashion industry. Trade embargoes, political unrest in an area of raw material supply and economic downturns that lead to restricted consumer spending are all threats to the accessibility of raw materials, brand exposure and name recognition, distribution and consumer purchasing (Williams, Jennifer ).

The threats for Dame de Sac are the impact of counterfeit goods, high standards in competition and the fact that fashion is in constant change. The production and sale of counterfeit goods is a universal, multi-billion dollar problem has grave economic costs on businesses and consumers. Counterfeit goods lower the worth of the authentic product and impact sales negatively (Counterfeit goods: a bargain or a costly mistake?, 2013). Higher end merchandise that depends on exclusiveness to market their brand loose essential customers because of the excess of imitation goods. Customers switch to lesser known brands that are not being copied to maintain the sense of exclusivity high end products affords them.

Companies in the fashion arena must constantly encourage new trends in order to sell more products. Designers and buyers must foresee which trends will become popular in the near future all while having no guarantee of the success of the trend. This ever-changing market of fashion adds to strong competition between professionals and businesses in the industry. Intense industry competition may hurt growth and profitability because increase competition means an increase in marketing and sales expenses. Dame de Sac may lower prices, start manufacturing more quickly, or offer greater customization branding to differentiate itself from the competition as much as possible. Alone a company might not be able to size strength or weaknesses objectively, but the subject of competitions will help put a business in a better perspective.

The strengths for Dame de Sac are the consumer's loyalty to the brand, a defined market segment, a strong online presence and the outstanding customer service. The company is also considered a trendsetter for its unique and original designs. Uniqueness is a characteristic of target market segment and it produces profits consistently. Target segments can keep Dame in business and allow growth. It's Dame de Sac's differentiated value which customers and prospects trust are important and appealing. It's why consumers want to buy Dame, not competitors' brands. Trend-setters distinguish themselves from their competitors by assessing their strengths and weaknesses. Coach is one of the main competitors in the field of luxury and leather handbags. Customization and differentiation is how Dame will compete with Coach. The abundance of counterfeit goods and accessories is adversely affecting the sales of branded accessories. Counterfeit Coach Bags have flooded the market and consumers switch to lesser known brands that are not being copied. Dame with capitalize on this offering the customization to distinguish originality. In order to have consumers want to the product, they must have a clear definition of the product in mind; original and creative. With brand loyalty