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