Luxury fashion companies must be able to adapt to a fast changing external environment if they want to remain competitive, to maintain their status within the luxury sector and their attractiveness to the target market. Various factors including a prolonged economic crisis, the development of new technologies and communication platforms and the rising importance of social and ethical issues have had a profound impact on the competitive strategies of luxury brands.
1. Select a company/brand (or group of companies/brands) operating within the luxury fashion sector at international level (N.B. you cannot select the case study brand for this assignment). You must agree your choice with the Unit Leader.
2. Select an external factor that is generating a significant change to the environment in which the company operates (e.g. Chinese slowdown, emerging markets, technological innovation etc.);
3. Discuss how the selected company/brand is responding to this change in the external environment (e.g. how is x brand responding to the Chinese slowdown). Critically evaluate the strategies this company/brand has developed and implemented to protect and enhance its competitive advantage and to remain relevant to its target customers.