Competitors analysis - Research Paper Example

Competitors Analysis al Affiliation Products and Services Offered Chloe: The Company deals in ready-to-wear clothing, footwear, bags, accessories, fragrance, among other beauty products. Valentino: It is a French clothing company that got founded by Valentino Garavani in 1959. Being a member of the Valentino Fashion Group, it deals in designer footwear and clothing for both men and women. Also, the company sells luxury accessories such as bags, jewellery, and timepieces. The company has expanded to deals in a range of body lotions and beauty products.

AzzedineAlaia: It is a Paris-based fashion beauty shop that specializes in clothing and accessories. Among these products include AzzedineAlaia shoes, shirts, blouses, jackets, dresses, lingerie, coats, and skirts.Lanvin: It is a product and serviced offering company that specializes in beauty products, perfumes, body lotions, hair dressing, body makeup, and skincare products. Also, it offers services such as body art, plastic surgery, and hair envy. Other products offered by the company include cosmetics, toiletries, weight and health products, and vitamins.

GiambattistaValli: It deals in fashion and beauty products such as men and women clothing, handbags, shoes, plus size, accessories, and jewelry. On the other hand, the company sells fragrance, skincare, and makeup products (Kapferer & Bastien, 2009). Market Share of Each CompetitorGiven these companies deal along the same line of products, they tend to compete for market dominance. The five companies command sizable market shares in France and globally. In particular, their commands can be tabulated as below: Company Market Share in France (Paris) - %Chloe11Valentino29AzzedineAlaia32Lanvin7GiambattistaValli21Source: Kapferer & Bastien, 2009.

Current StrategiesNotably the five companies tend to apply common and similar competitive strategies. Some of these strategies include product differentiation, as well as practicing the first, second, and third degrees of price differentiation. This would be fundamental in ensuring diverse and ever changing customer demands get satisfied accordingly. Given the variations of income among consumers, these players saw it wise to charge different prices for their commodities and services depending on consumers’ wealth endowments (Kapferer & Bastien, 2009).

Types of Media Used to Market these Products or ServicesThe five companies share a number of elements in common. This can be evidenced by the type of marketing media they apply. In order to reach out to a larger population of their potential clients, they heavily rely on online marketing platforms. In particular, these companies use social media and other online models to promote, advertise, and popularize their products and services. They use their websites and online advertising options such as Google search engines in reaching out to their customers.

Also, they apply different forms of print media such as magazines and newsletters, and booklets to promote their products and services globally (Kapferer & Bastien, 2009). Competitors Strengths and WeaknessesStrengthsBrand equity coupled with intellectual property Original products lines and new fragrancesStrong financial position Highly creative and skilled human source capacity Stronger global brand presence Good marketing and branding strategies Weaknesses Poor Pricing StrategyOver dependence on women’s sales as primary source of revenueLack of country-to-country brand products customization Source: Kapferer & Bastien, 2009Potential Threats Posed by CompetitorsWith competition intensifying, it has been established that many players in the industry are likely to suffer a considerable decline in their profitability returns.

This is because some players will introduce highly differentiated but cheaper products and services. As a result, some dominant firms will loose part of their market dominance, with customers opting for newly launched products (Kapferer & Bastien, 2009).Potential OpportunitiesThe fast growing appetite and demand for luxuries and beauty products among the non-European countries like Chine presents a potential market for these products and services. Characterized positive changes in the demographic statistics, the fashion and beauty industry is fast growing and generating sufficient returns on investments for its players.

Economic instability and financial crises further threatens the growth potentials of the industry. ReferenceKapferer, J. & Bastien, V. (2009). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. London: Kogan Page.