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Tommy Hilfiger The Struggles of an American Fashion Icon - Case Study Example

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The researcher of this paper analyzes the Tommy Hilfiger Case. The Tommy Hilfiger brand became popular in the 1990s due to several major factors. First, Hilfiger had accumulated enough experience over the years to give customers whatever they wanted…
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Tommy Hilfiger The Struggles of an American Fashion Icon
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Tommy Hilfiger Case Analysis al Affiliation: Tommy Hilfiger Case Analysis The Tommy Hilfiger brand became popular in the 1990sdue to several major factors. First, Hilfiger had accumulated enough experience over the years to give customers whatever they wanted. Secondly, the brand introduced many different lines of clothes and shoes during the same period. Thirdly, Hilfiger won several awards in the fashion that served to advertise his brand as evidenced by its popularity among men of repute such as Prince Charles. Lastly, the 1990s was the period of the rise of hip-hop music. As one of the most favored brands by hip-hop musicians, Tommy Hilfiger grew with the music genre (Hilfiger 1997, p. 37).
Fashion companies remain relevant as long as they innovate and come up with new designs for their customers. People get easily bored when they simply get the variants of the same thing. For starting, Tommy Hilfiger was innovative and came out with brands that people coveted. However, nearing the end of the 1990s, the company slowed down its rate of innovation, instead focused on distribution, and opening more stores for the existing brands. Other brands came up and overtook the company in terms of both innovation and distribution.
The turn of the century has witnessed many new fashion brands coming up to offer customers better clothes at cheaper prices. To survive such a landscape, Tommy Hilfiger needs to seek ways of covering all the loopholes available to its design, supply chain, and pricing models. In design, it should focus on a few brands that are still profitable in its line of offers. This aspect would allow the company to eliminate wasting time and resources on unprofitable ventures. For the supply chain, the company can seek other ways of taking the clothes to the customers such as using companies specialized in supply chain management. The prices should be reduced a bit to match that of competitors but not to be too low that they cheapen the brand (Assouline 2012, p. 12). Furthermore, increasing of influence sphere can also affect the sales, increase the overall company’s performance, and brand recognizability in other countries. Creation of the developed network in the world is quite effective strategy due to many reasons. Mainly most of them are connected with new places of sales, such development can be associated with peculiar threats associated with low effectiveness of company’s control. However, franchising offers can handle problems with control and increasing of influence, however, this direction of development can be quite risky (Edwards, 2011, p. 56). However, Tommy Hilfiger Company can afford such investments and risks. Franchising also brings new insights to the company’s development, as well as introducing of new products and development of client base through creation of new affiliates. All these things like supplying issues, pricing management and development of client base should be primary concern for company’s managers.(Faulkner, 2000, p. 120).
References
Hilfiger, T. (1997). All-American: A Style Book. Universe Publishers.
Assouline, (2012). Tommy Hilfiger. New York, Perseus Distribution Services.
Edwards, J., & Ogilvie, S. (2011). What lessons for economic development can we draw from the champagne fairs? Munich: Univ., Center for Economic Studies.
Goldman, R., & Gabriel, R. (2005). Innovation happens elsewhere open source as business strategy. Amsterdam: Morgan Kaufmann.
Faulkner, D. (2000). Cooperative strategy: Economic, business and organizational issues. Oxford: Oxford University Press. Read More
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