StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Michael Kors: Retails Next Billion Dollar Man - Term Paper Example

Cite this document
Summary
The paper "Michael Kors: Retail’s Next Billion-Dollar Man" discusses the trajectory of Michael Kors and his company. Michael Kors is a fashion designer who at 50 becomes the youngest winner of the Council of Fashion Designers of America awards (Prasso, 2010)…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
Michael Kors: Retails Next Billion Dollar Man
Read Text Preview

Extract of sample "Michael Kors: Retails Next Billion Dollar Man"

Michael Kors built his retail empire by joining forces with some smart investors that had a lot of experience and success in the retail industry. In 2003 Lawrence Stroll and Silas Chou bought a controlling interest of 85% in Kors brand for $100 million. These two entrepreneurs invested in Tommy Hilfiger in 1989 and three years later they turn his company into a publicly-traded corporation. The process to turn a company from a private business into a public firm that can sell its stock in the open market is known as an initial public offering (IPO) (Investopedia, 2011).

Kors has implemented a lot of smart marketing strategies that have allowed his brand to differentiate itself from other designers. The firm recently introduced a new collection of clothes that has the same prestige as the Kors line, but at a lower price point. Another strategy that Kors utilized to increase the profitability of the company was product diversity. The utilization of a product diversification strategy enables companies to expand their market (Theproduct, 2011). Kors began selling perfumes, handbags, and watches. These products have a higher profit margin than clothes. These new products are considered cash cow products. A cash cow is a product that produces a constant dependable source of income (Answers, 2011). Kors and his management team have a massive expansion plan for the company. The firm has 80 stores in the United States and 20 global stores. The firm plans to open an additional 100 retail outlets worldwide by the year 2012. The growth plan the company is undertaking has the objective of maximizing shareholder’s wealth in order to optimize the market price of the firm’s stock once it goes public.

Michael Kors is a great designer that has the foresight to partner up with some smart business people that had a lot of knowledge of marketing and the fashion industry. The business realized that the market trend in a recession is for consumers to lower their consumption patterns. In order to attract new customers, Kors introduced a new clothesline at a lower price point. The strategy enabled the firm to satisfy the needs of the customers without lowering their prices. The lower prices were for newly introduced items. The traditional clothesline had the same price structure. In the changing business world of the 21st-century marketers have to adapt in order to satisfy the needs of the customers.

 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Marketing Term Paper Example | Topics and Well Written Essays - 500 words - 1”, n.d.)
Retrieved from https://studentshare.org/other/1420018-marketing
(Marketing Term Paper Example | Topics and Well Written Essays - 500 Words - 1)
https://studentshare.org/other/1420018-marketing.
“Marketing Term Paper Example | Topics and Well Written Essays - 500 Words - 1”, n.d. https://studentshare.org/other/1420018-marketing.
  • Cited: 0 times

CHECK THESE SAMPLES OF Michael Kors: Retails Next Billion Dollar Man

The Rise & Fall of a Billion-Dollar Company Enron

The Rise & Fall of a billion dollar Company Enron No: University: Date: The Rise & Fall of a billion dollar Company Enron Company Profile The journey of Enron started way back to 1985 when it acquired the assets of Houston Natural Gas and Omaha based at Inter North.... ?In the year 2000, the company's annual revenue touched the new heights of USD 100 billion.... It employed more than 20,000 employees to deal with their electricity natural gas, communication, pulp and paper company businesses that generated revenue around 101 billion USD (Fusaro & Miller, 2002)....
8 Pages (2000 words) Term Paper

Analysis of Accessories and Gifts Manufacturing Industry: Coach, Inc Company

9 billion dollars respectively as at the end quarter of 2012 (Wikiinvest).... 6 billion, direct-to-consumer sales rose by 16.... 3 billion, comparable sales in Coach's North American stores increased by 6.... Analysis of Accessories and Gifts Manufacturing Industry: Coach, Inc....
4 Pages (1000 words) Assignment

Michael Kors Business Strategy and Policy

This research is being carried out to discuss the business strategy and policy of michael kors Company with respect to Porters Five Forces Analysis, in terms of ease of entry, rivalry, supplier power, buyer power, and available substitutes.... hellip; This research will begin with the statement that michael kors Company is a speedily growing lifestyle branded global luxury that is led by a technical world-class management team and prominent and celebrated award-winning designers....
6 Pages (1500 words) Essay

Micheal kors

In this regard, michael kors has specialized in the trade of fashionable clothing in the American market, but with proper management, venturing into foreign markets may be beneficial.... michael kors Corporate Social Responsibility Corporate social responsibility is the act of an organization giving back to the society; the organizations are indulged in activities that ensure that its neighbor and surrounding benefit from it.... In this regard, michael kors has been active in its corporate social responsibilities activities such as the donations it made to “God's loves we deliver....
3 Pages (750 words) Research Paper

Internal factor Evaluation on Michael Kors Company

Internal factor Evaluation on michael kors Company Internal Strategic Factors Weight Rating Weighted Score Strengths Profitability due to increased sales 0.... michael kors Holdings Ltd has currently made the headlines in the best performing stocks in America, catching the attention of the financial analysts and the investors.... This paper will evaluate the strengths and weaknesses of michael kors' company as part of its internal factor evaluation in relation to the above ratings....
3 Pages (750 words) Essay

Decision to Grant Money in Debt to PVH Corporation

Furthermore, the high current ratio may not be a good indication as a review of PVH's Balance Sheet shows that majority of its current assets (almost a third of the dollar value) are tied up in inventory which indicates a major problem.... From the paper "Decision to Grant Money in Debt to PVH Corporation" it is clear that it is recommended that the investment bank does not grant new debt in £20 million to PVH considering that it is highly geared and has an already high-interest expense....
7 Pages (1750 words) Case Study

Internal factor Evaluation on Michael Kors Company

michael kors uses historical growth rate to estimate its expected growth in future.... A rising trend in the growth of the business is an indication of positive growth in future While compared to the industry performance, michael kors holdings Ltd.... michael kors has maintained a steady growth in its sales volume which has...
3 Pages (750 words) Essay

Million Dollar Arm

In the paper “Million dollar Arm” the author analyzes the film about a successful sports agent, JB Bernstein, and his partner Aash Vasudevan, who have everything to lose if they do not get new clients and baseball pitchers.... Contrary to the luxurious life that he used to in the United States, Bernstein is shocked to see the overcrowded cities in India and traffic that did not seem to end (Million dollar Arm).... The two new prospects, Dinesh and Rinku are trained by a baseball coach known as Tom House (Million dollar Arm)....
2 Pages (500 words) Movie Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us