Oscar de la RentaOscar de la Renta Team One JC Sullivan,Adam Dumaresque, Mitch Getson, Bailey...

Oscar de la Renta

Team OneJC Sullivan,Adam Dumaresque, Mitch Getson, Bailey Penney, Jason Khoury,

Jennifer Kerr

Agenda

Firm Overview

External Analysis

Internal Analysis

Strategic Alternatives

Decision Matrix

Implementation Plan & Contingency Plan

Firm Overview Oscar De La Renta

Primarily stand-alone single brand

Current Strategy: High price, differentiation

Intensity of Rivalry: High

Recommendation: Capacity expansion- differentiation

External AnalysisStrategic Group Map

Low Price Price High Price

External Analysis Strategic Group Map

High price, low differentiation

LVMH : high price high product reach

CK: lower price low product reach

Remain narrow in product reach

Internal AnalysisValue Chain

Channel selection: Strategic channel selection helps us market our product Premium prices can be charged to certain channels

Pricing: High prices helps us create value without cost

limitations

Advertising: Our niche market is an advertisement in itself Exclusive fashion shows, high-end magazine covers and

boutiques

External AnalysisPorters 5 Forces

Bargaining power of buyers high

Threat of new entrants low

Threat of substitutes moderate

Bargaining power of suppliers moderate

Rivalry among existing competitors high

Financial Analysis

From 1999-2003 was ODLR’s most successful period

Gross Profit Increased 49.8%

Ready-to-wear revenues grew 19% while licensing revenues dropped 16%

Operating expenses dropped 11.1%

Strategic Alternatives

Strategic Alternatives Capacity expansion – Cost Leadership/Differentiation New business entry – Differentiation

Decision Criteria Future growth Alignment with current strategy/core competencies Customer attraction/retention Customer satisfaction Product reach

Strategic Decision Matrix

Best Alternative: Boutique Presence & Selective Licensing – CE x D

Second Best: Expanded Licensing & Market Reach – NBE x D

Third Best: Low Price Market Entry – CE x D

Implementation Plan

Boutique Presence

Market research on boutique locations

Financing

New Product Breathe

Brand consistency

Contingency Plan

Oscar dies: High risk & High impact

Change in fashion trends: Moderate risk & Low impact

Poor economy: Moderate risk & Moderate impact

Trade embargo (politics): Low risk & Moderate impact

Rise of new highly competitive rival: Low risk & High impact

Questions

Rest In Peace Oscar de la Renta 1932-2014