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The House of Gucci or simply Gucci is an Italian fashion moving picture company. Founded by Guccio Gucci in Florence, 1906, it is now the most famous high life defacement in the world. Gucci earned US $ 7 one million million in revenues in 2006. It ranks 46th in Business weeks Top 100 Brands. It now has 425 stores worldwide and a number of franchisees and high-end department stores that carry its brands. Gucci, being one of the agio brands, has to contend with a number of factors both internal and international in order to maintain its current status. The following is the compendium on Guccis strengths, weaknesses, opportunities and threats. SWOT Analysis of Gucci Strengths The strength of Gucci is in its established, very strong brand image and international presence. Gucci has likewise the ability to control its distribution channels. This is part of Guccis defending strategy in the chain economic value to capture the value added instead of giving it to the middlemen much(prenominal) as suppliers and retailers. The company has in addition increased the number of their Directly Operated Stores (DOS) as part of the justificative strategy of taking more control of the distribution process. The 2003 cipher showed that DOS accounted for 61.3% of revenues compared to a much lower 32.5% in 1999.

Its combative strategy accomplished through diversification and communication is in any case another of Guccis strengths. Gucci changed its strategy of carrying a single brand to branching out to a multi brand group. This strategy is besides adopted by other conglomerates such as Louis Vuitton and Prada. round luxury companies use the strategy of focusing only on one brand and add other business segments such as what Armani, Polo Ralph Lauren, and Versace did. This strategy is done in order to set aside the positioning of the brand in the industry to differ depending on the number of brands and the number of business segments the company wants to compete in. This is the idea behind focus (mono brand) versus diversification (multi-brand). Gucci... If you want to get a full essay, order it on our website: Orderessay

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