In terms of Political and Environmental aspects, Michael Kors development in China faces some challenges. They expect the mens category to grow from 3% sales in 2017 to 8% sales in 2018. Workplace diversity can also act as a major business strength, particularly when the organisation intends to operate in the international market. IEEE. Although Kors is enrolled in an advanced program at the fashion institute of Technology and decided it was time to experiment with his own style, and walked out of the program after one year. Available at: [Accessed 20 April 2020]. SWOT Analysis: Strengths Michael Kors like any other company or brand is made of both strengths and weaknesses. His brand has been endorsed by famous celebrities. Available at: [Accessed 9 April 2020]. SWOT Analysis. This concept means products with low market share but in high-growth markets. The wide product portfolio can allow the organisation to expand the customer base and offset the losses from one product category with benefits obtained from the other. Countries such as India and China provide the potential for a massive future for luxury products. The emergence of new market segments and new niches provide business and product line expansion opportunities. Michael Kors positions itself as a luxury brand with innate sense of glamour and the unfailing eye for timeless chic. May 29, 2019 By Hitesh Bhasin Filed Under: Brand Strategies. The decision-making based on weighted SWOT analysis can strengthen the Strategic competitiveness of Michael Kors and lead towards more informative strategic analysis. 2.2 Competitors and competitive environment, 2.2.1 Competitors analysis of Michael Kors. A review of academic research from the last decade. Some of the key weaknesses of Michael Kors are: Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalise to increase its returns. Michael Kors SWOT Analysis | MBA Skool PEST Analysis Of China. For example, the main strategic objective of the chosen business organisation is to launch innovative and new products in the market. Mens and womens ready-to-wear | Accessories | Watches | Jewellery | Footwear | Fragrance. Marketing Co. To sum up, in the aspect of Michael Kors internal marketing environment, there are many obvious strengths and opportunities however it also has several deficiencies in the company's working methods and working structure. And another one is Sitoy Group Holdings Ltd. which is special to produce leather goods. Friesner, T. (2011). From a cultural perspective, Chinese urban women aged 25-45 are mainly working women and housewives, and the average age of marriage for Chinese women is 23 year-old, which means that this age ranges group of consumers are married or have children. Hence as the aspect of product development, Michael Kors is expected to add interesting detail designs or launch selling points with other brands through co-branding in its handbag design. Brand image. The exponential growth in the population, and particularly in the existing or potential customer segments is a great growth opportunity for the business organisation. The handbags very popular among the millennials and is a category leader, with competitors like Coach and Kate Spade. Reduction in the interest rates makes the fund raising and financing at lower cost easier for the business organisation. Most recent surveys suggest that around 76 % students try professional The MICHAEL Michael Kors collection has a strong focus on accessories, and appeals to the younger demographic. The millennials accounted to the third of the spending on Michael Kors brand. Although Kors is enrolled in an advanced program at the fashion institute of Technology and decided it was time to experiment with his own style, and walked out of the program after one year. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); About Michael Kors SWOT analysis of Michael Kors, SWOT analysis of Michael Kors Michael Kors SWOT analysis, Strengths of Michael Kors Michael Kors SWOT analysis, Weaknesses of Michael Kors SWOT Analysis OfMichael Kors, Opportunities ofMichael Kors Michael Kors SWOT analysis, Threats of Michael Kors SWOT analysis of Michael Kors, A Multinational Computer Networking Company, American multinational energy corporation Company, Hair & Care SWOT analysis SWOT analysis of Hair & Care, Sensodyne SWOT analysis SWOT analysis of Sensodyne, Revlon SWOT analysis SWOT analysis of Revlon, Burger King Marketing Mix Marketing Mix Of Burger King, Fedex Marketing Mix Marketing Mix Of Fedex, Ipad Marketing Mix Marketing Mix Of Ipad, Rolex Marketing Mix Marketing Mix Of Rolex, Pizza Hut Marketing Mix Marketing Mix Of Pizza Hut. -Coach dominated the luxury goods market by marketing affordable and stylish bags to a younger demographic. Handbags originally occupied a high market share in Michael Kors sales, and the new co-branding handbags with Kaws has a high growth market in young university group. Access to the suppliers that offer raw material at a lower cost can improve the overall business efficiency. Farooq, U., 2019. Michael Korss new target market in China can be a group of 18-24 year old university students. The complex interdependency between the internal (strengths/weaknesses) and external (opportunities/threats) environmental factors make the analysis more difficult. Hence in 2019 Michael Kors future business profile by geography, it puts 20% of its marketing work in China which was only about 10% in previous years(Jing Daily, 2019). 8. According to figure 13, such commodities are: existing products, products that are outdated and do not have market competitiveness. 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Michael Kors SWOT Analysis can be further enhanced by adopting the advanced SWOT analysis technique. (Ed.). How Splurging Chinese Students Spell Big Bucks For Luxury Brands | Jing Daily. SWOT Analysis III. However, to expand the Chinese market, this positioning is not in line with Chinese cultural status and consumption level of age group. Marketing Teacher, 2000-2010. And Michael Kors is heavily rely on a Chinese manufacturer in the production of handbags so that it is constrained in the production price of the product. The threats in the SWOT Analysis of Michael Kors are as mentioned: 1.Other brands offer more styles and cuts, 2.Similar products available in other brands thus switching cost is less. The strengths of Michael Kors looks at the key aspects of its business which gives it competitive advantage in the market. Available at: [Accessed 12 April 2020]. [online] McKinsey & Company. [online] Jing Daily. They recently took Selena Gomez as the brand ambassador which has given Coach a competitive advantage as Selena Gomez has the huge following on social media. According to the 2019 Chinese Urban Women's Expending Survey, this group of consumers are willing to spend $1000 on handbag seasonally in every half year(McKinsey, 2019). (Michael Kors, 2020). Below are the Strengths in the SWOT Analysis of Michael Kors : 1.The clothes have been fancied by ladies for past 30 years. As addition of product part in the below figure13, this article also provides some product design case of this co-branding product development in figure 14. The fashion and affordable luxury market have seen weak spending in apparel and accessories, declining traffic in the mall. Tuesday, May 7, 2013 SWOT Analysis STRENGTHS Rapidly Growing Luxury Lifestyle Brand with Best-in-Class Growth Metrics : 58.1 % and 28.0% revenue growth in Fiscal 2011 and Fiscal 2010 respectively. You will generally find me online at the Marketing91 Academy. What celebrities wear are always being watched and everyone wants to look like a celeb so this exposed his products to very wide customers making it a brand every millennial aspires to own. Available at: [Accessed 30 April 2020]. Valentin, E. K. (2001). For example, this approach does not offer a broader overview of how internal and external environmental factors collectively influence the business in the short and long-run. Michael Kors approves of personal and social responsibility. 8)Due to poor inventory management practices, brands may lose their luxury status. Hanlon, A., 2019. Achim, A., 2019. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. The company claims that the brand has a high recall 5. Michael kors have expanded internationally through the acquisition of geographic licensees in China, Hong Kong, Taiwan as also growing in the South Korean market. Therefore, this article proposes that if Michael Kors aims to develop the Chinese market on a large scale, it needs to repositioning. Michael Kors fun facts: Michael Kors is name checked by artists including Nicki Minaj, Drake, Big Sean and Pusha T in some of their biggest hits. Michael Kors SWOT Analysis Posted by Jessica Byrne on Apr-24-2018 What is SWOT analysis? High product quality increases brand loyalty and improves Michael Kors's performance in a competitive market. Michael Kors SWOT analysis - Business Marketing Strategy Not only achieved commercial profits, but also expanded Uniqlo's target market and popularity in China(Zhuang, P., 2019). the fashion industry in the back of their minds. This section covers SWOT Analysis along with Segmentation, Target Market, Positioning & USP of more than 2000 brands from over 20 industry sectors. Very well-known brand in US and other developed cities 2. If there is a common risk avoidance attitude in company culture, it can prevent employees from creative thinking. In this chapter, the article will analyse Michael Kors competitive environment in Chinese market from the bargaining power of suppliers, the bargaining power of buyers, entry threat, rivalry and substitute threat these 5 aspects. Michael Kors Marketing Strategy & Marketing Mix (4Ps) The companys turnover surpassed 1 billion USD in the year 2014 and has seen a steady increase since then. In FY2017, the retail value of Asia Pacific reached 9% of total Michael Kors sales. Comment * document.getElementById("comment").setAttribute( "id", "ab1e6ad409cbe7e305c4dbc687b98f6a" );document.getElementById("i2e65971ac").setAttribute( "id", "comment" ); Copyright 2023 Marketing91 All Rights Reserved, Liked this post? SWOT Analysis - SWOT Analysis: Strengths Michael Kors like - Course Hero Michael Kors (KORS) SWOT Analysis / TOWS Matrix / MBA Resources Available at: [Accessed 12 April 2020]. In response to the current status of media throughout China, Michael Kors can output its storytelling on three main platforms: WeChat Official Account, Weibo, and Tiktok. These consumers are mainly millennials, 18-24 year-old university students. Products with high market and share in high-growth markets. Their market share is not large, but they have high growth potential. LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and to show you relevant ads (including professional and job ads) on and off LinkedIn. Meanwhile because Michale Kors discount products can be bought on many platforms, this way of handling stock also weakens its brand value. 2020. Michael Kors was not always doing well as a brand. However, weighted SWOT analysis is also not without limitations. Help, Academic According to Ashley Lutz in Business Insider Michael Kors succeeded because it was one of the first retailers to hit the right market, it targeted t people that were not rich but had the money to spend. Reducing weaknesses to exploit opportunities- WO. It was initially famous for American apparel, accessories and footwear and with the development, it became one of the world-famous top luxury brands in the millennium(SuccessStory, 2020). Based on various researches at Oak Spring University , Michael Kors is operating in a macro-environment that has been destablized by - increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing energy prices, technology disruption, increasing commodity prices, increasing household debt bec. A few of his regular clients are Jennifer Lopez, Emma Roberts, Michelle Obama, and Natalie Portman. Hence, comparing Michael Korss handbag pricing(range from $300 -$550), Michael Kors is not only not the best choice for this consumer group, but also does not meet their consumption purpose. to get Coupon Code. It enables the Michael Kors to maximise its strengths, overcome the weaknesses, reduce threats and exploit opportunities. The fashions of Kor that were high on elegantness were noticed by the likes of celebrities such as Barbara Walker who becomes his regular client. The potential of the area is about 100 billion dollars over the next 10 years. 4. We are here to help. As soon as an order is taken the product is shipped and the route is tracked via the online tracking system. Helms, M. M., & Nixon, J. Craft. Michael Kors SWOT analysis - SWOT analysis of Michael Kors: Michael Kors Holding Private Limited is a brand of designer accessories and sportswear that is owned by Michael Kors, the well-known creator of Michael Kors. This is the SWOT analysis of Michael Kors. The growing environmental sustainability trends act as a major threat when offered products/services are not environment friendly. The company must look at emerging markets to expand its business and achieve higher quantities. The decision making in the Michael Kors takes too much time, causing expensive delays in introducing new products in the market. [online] Jing Daily. Michael Kors Is Now On Snapchat, Which Might Be A Problem. The brand sells accessories, clothes, perfumes and jewellery for both women and men. The table given below provides some examples of each combination: Fernandez, J. With this weakness, the organisation may not be able to identify the potential improvement seeking areas in product/service mix. Its price is affordable and the quality of its products is good. And in recent years, KAWS has achieved very good sales performance with luxury brand such as Dior and Superme. And those well-told stories than facts are easier to remember and persuade to take action(Escalas, 2004). Less expenditure on the research and development activities can weaken the company performance due to poor local/international market knowledge. 2020. Since then, it was impossible to stop him. Michael Kors Holdings Private Limited with a number of high-profile clients including Michelle Obama, Heidi Klum, Jennifer Lopez, and Emma Roberts. In the following figure 16, this article works out a proposal of Michael Kors marketing communication in the form of Storytelling Canvas: Michael Kors is a luxury brand based on American culture. In terms of technology, China is booming E- commerce business due to the huge number of Internet users. Alternatively, check out theMarketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies. The brands geographic presence is restricted and is lesser known globally. It oversimplifies the process of identifying strengths, weaknesses, opportunities and threats. Michael Kors was established in 1981 by Michael Kors in New York. High job stress and consequent low workers morale makes the workforce less productive. The brand has increasing preferences from the millennial customers as it resonates with the latest trends in the fashion industry. Michael Kors' has a lot of strengths, the first one being that the brand is resilient. The well-developed and efficiently integrated IT infrastructure can improve the operational efficiency and increase knowledge of the latest market trends. Here are the weaknesses in the Michael Kors SWOT Analysis: 1.The brand being among the elite brand is prone to recession and economic downturns, 2. Michael Kors advocates respect in brand value. Apr-24-2018. Headed by China: Asian countries such as Japan, South Korea, Singapore and Thailand all have very high consuming power. In terms of suppliers, Michael Kors mainly has relationships with two major suppliers, one of which is responsible for the production of clothing, denim and fabrics, called Ci jeans sa cra. [online] Marketing91. The company claims that the brand has a high recall, 5. Moreover, with the improvement of education level, there are women groups between 25-45 years old with high education who are still attending university, which is also Michael Kors target market. Michael Kors Holdings Limited has been regarded as one of the leading brand in the luxury fashion industry of America. -Coach is worth $22.7 billion and Michael Kors $9.1 billion. Write about your experiences and thoughts in the comments below. Porters 5 Five Force Analysis is an effective tool that can be used to assess pressure within a competitive business environment. Hi, I am an MBA and the CEO of Marketing91. According to the PESTEL analysis in the above table, it shows that luxury brands have great advantages and potential in the three aspects of Economy, Social and Technology in the Chinese market.With the improvement of the Chinese people's material living standards, people have more material foundations, and society has formed a trend of consuming luxury products. Figure 6 indicates that Michael Kors expansion and development in China still encounter some challenges. The company turnover crossed 1 billion USD in the year 2014 and they have been on an uphill trajectory since then. Michael Kors SWOT analysis - SWOT analysis of Michael Kors: Michael Kors Holding Private Limited is a brand of designer accessories and sportswear that is owned by Michael Kors, the well-known creator of Michael Kors. The designer himself an esteemed celebrity designer. The brand has taken initiatives to re-invent itself and become more appealing to the young customer base. The geographic presence in different regions can act as one of the major strength of the organisation.
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