Chapter 2 - Strategic Planning for Competitive Advantage

    
    Chanel S.A., also known as The House of Chanel, is a privately owned company. Chanel is known world wide as a luxury brand. Through the luxury brand, the products sold are produced of high quality. Chanel is a global leader in fashion the fashion world and also the top innovator in the fragrance industry for decades. The mission of Chanel is "to be the ultimate house of luxury, defining style and creating desire, now and forever." Chanel illustrates products desirable of both sexes.  Chanel's strategic planning for competitive advantage isn't as loud or demanding than other fashion brands today. Chanel is a well established brand for nearly a century, and globally known. Chanel's growing success today lies mostly on Karl Lagerfeld, who never fails to interest consumers. Chanel is also extremely effective in preserving the brand image, in agreement to buyer’s wants and market trends. 

SWOT analysis of Chanel S.A

Strengths:  

-- Strong brand image: The brand focuses on timeless and classic designs that is highly recognized. The Chanel logo is also an icon.

-- High quality products: Most clothing pieces and accessories made are used with high quality materials and fabrics. Leather and tweet are the most infamous materials used in classic Chanel looks. 

-- Designer Karl Lagerfeld: Fashion icon Karl Lagerfeld is always reinventing Chanel and is known to have changed everything, yet nothing about Chanel. 

-- Strong Management: Chanel INC. is an Equal Employment Opportunity (EEO) employer, which has highly trained individuals who are technically skilled and knowledgeable about their qualified area of expertise.

Weakness:  

-- Price: For some the price of Chanel maybe reasonable but for most working class people the brand is rather expensive, which comes with sacrifice.

--Limited Production: Chanel discontinues many products after a period of time, especially in beauty production. Chanel may discontinue a certain item if it is from an older season.

Opportunities:  

-- Expansion: There are Chanel stores located in North and South America, Europe, Asia, and Australia. The company continues to expand sales production in the booming Asian market today.

-- Technology: Including the Chanel website and among other social networking sites. Chanel also offers an application on apple products.

Threats: 

-- Counterfeit: Illegal production of interfacing C logo and purse distribution are most commonly counterfeited. 

--Imitating Designs:  Many other designers and brand names mimic classic Chanel looks and often sell for more affordable prices to the consumer. The classic quilted chain purse, and "little black dress" are among many of the classic looks often replicated.  

Competitive Advantage: 

           The top three competitors of Chanel S.A are Louis Vuitton Moet Hennessy (LVMH), Gucci, and Prada. All luxury brands may seem similar to some but each of these brands differs completely to origin. Chanel differs from other designers because it is a classic and ageless brand rather than very modern or contemporary. Chanel’s competitive advantage lies in promotion, quality, benefits of use and design features. Chanel has advertisements in most fashion magazines, including Vogue. Chanel sells their cosmetic and skin care line separately in stores from the ready to wear clothing and accessories. The cosmetic and skin care line can be found in Macy's or Bloomingdales department stores. Each trained employee in every division is training accordingly to the area whether it maybe a makeup artist or consultant. Each consultant working in a Chanel boutique has had previous training in Paris to learn the history of the brand.

      Chanel has a fashion show four times a year to show each season's newest looks. The four types of fashion shows include, ready to wear, resort, pre-fall, and couture. These fashion shows include some of the most famous models strutting down the catwalk in the most luxurious of destinations. These fashion shows draw much attention and many prestigious individuals of the fashion world attend and also, celebrities.

chanel.com , wikipedia.com, newyorktimes.com, forbes.com