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Cases, and Readings in Cross-Border Management, SWOT Analysis Example

Pages: 10

Words: 2703

SWOT analysis

International business operations are expected to become more determined to make a change on the platform of business developments that are being adapted to by organizations that are becoming well aware of the need to jump into the situation. International operations often create a challenging environment for business organizations around the globe. It cannot be denied that modern industries created through time make such competitions even much harder to contend with. Practically, some organizations have already taken the lead towards establishing a definite name for themselves, thus noting how modern ways of development could be used to identify with what particular pattern of growth the company wants to embrace. In this discussion and presentation, a focus on Chanel and how it has grown into a huge company catering to a large number of clients from around the globe [both online and offline] shall be given attention to. Notably, this aspect of expansion and growth instantiates a sense of development that would fully provide the organization with a sense of distinct course of improvement especially when it comes to identifying the different elements that strengthen the company’s capability to extend its performance in the market. This SWOT analysis paper shall make it easier for the readers to become more effective in determining the most distinct courses of development that Chanel has incurred through time and how well it could create a sense of distinction on how other business organizations could do well to define the being and the existence of other business ventures in the market.

Introduction

Every organization has to start from somewhere. Every huge company started out small, faced some struggles and took victorious turns in manifesting their capacity to become more effective in pursuing business goals that identify fully with what they want to accomplish in their business-life. Practically, as business organizations are composed of goals, administrators find it easier to establish a course of operation that would fit the said goals perfectly. It could be understood that somehow, the practical ways of development taken into account by organizations often take a common pattern; one that allows them to use available resources at the fullest, thus gaining extensive benefits from the operations at a much improved state.

Notable brands like Channel do so much to make sure that such assumptions of development become part of the culture that their organizations embraces especially in the course of creating a lot larger platform for development. Noticeably, it could be analyzed that modern operations of organizational growth have been acquired by Chanel through time, from the point of history to the point of present operations, Chanel has been trying to face the different issues that working and operating internationally brings about to the company. The road to continuous success and international recognition was not at all easy. It could be realized that somehow, Chanel’s willingness to become more effective in completing its responsibilities to the society and its primary goals as the backbone of its operations has made it easier for the company to become more expansive, especially in the manner by which it insists on the capacity of the organization to work fully towards development.

In the discussion that follows, knowing more about how Chanel developed through time, what struggles it has gone through and what specific patterns of development have fully allowed the organization to become more extensive in creating a better pattern of operation for the business to thrive in shall be given attention to herein. No matter how supposedly extensive the situation is, Chanel tried to rise to the challenge; how well did this adjustment mandate the course of improvement that the company wanted to acquire? These queries shall be responded to in a more definite manner in the discussion that follows.

Company Background

Noted to be among the largest brands in fashion and luxury bags today is the name Chanel.  Operating in several branches of specifically designed distribution portals for distinct designer bags, Chanel is the brand to beat in the industry. Owned by Alain and Gerard Wertheimer, the Chanel brand is a French company that has operated in the fashion industry at the earliest years of the 1920s. Inspired by the desire of establishing a fashion statement that would be set apart from all others, Chanel brand follows the concept of social elitism. Women in the French society were very specific about their fashion and the Chanel brand is noted to be among the most commonly noted names to describe such essence of elitism. This concept of cultural fashion has been carried into account through the years of operation that the business entails to embrace as it fully takes into account the desire to embrace international, market services. The business is currently doing well in making a statement in fashion with the brand it is represented with. Catering to the desire of the women [and now men] to be recognized through their social status, Chanel feeds the desire of each consumer to be noted and recognized in the community. Establishing social status quo as the basis of the business, Chanel does well to denote the fact that it is able to create a notable notion of reputable background that individuals from the elite society continue to trust it and are willing enough to shed out money to be able to grab hold of the latest designs in bags that would fit to define their status in the society accordingly.

The strategy of branding and consumer conditioning that the organization takes into account is practically aggressive and determinable of the course of development the business aims to take into account. Most likely, it is with this concept of operation that the organization does well in making a mark in the thinking and response system that the clients primarily take into consideration whenever they intend to buy the next best design, or the new selection of designer bags that the company releases in the international market.

SWOT Analysis

Strengths

  • Pioneer position in the industry

Being among the first organizations to establish a new form of business development based upon the course of identifying what good store-operations is about, the Chanel system of business development is strongly assumed to have been one of the most important aspects of success that makes it one of the pioneer operators in the industry that has made it big in the fact of massive trials and challenges along the way.

  • Supplier-connections and agreements

Ever since the beginning of the operation, it could be identified how the organization has already grown into a business empire. One of the reasons behind the emergence of such growth is the fact that the organization is completely dependent o what is noted as supplier-distributor agreement. The connection that Chanel has with their raw material suppliers from all over the globe is solidified by agreements and contracts that serve the value for business operation that the organizations largely give high importance to.

Across the regions, Chanel administrators make it a point that the emergence of company control would be strong enough to make a definite turn on how business operations could be embraced accordingly. Noting how the business grows is an important part of determining the success of the business; and somehow, making a definite form of connection with the suppliers is one of the most important contracts the business takes into account in order for it to take on assumptive conditions of improving the strong points of the business. Having a good partner of suppliers gives Chanel a better edge against its competitors in the market.

  • Firm stance in the stock market

Having a completely redefined flow of income, the business boasts a definite flow of support for investors who are aiming to share with the success of the business. The firm stand of Chanel’s business reputation in the stock market makes it much of a desirable organization that businesses investors are likely largely acquainted with. This is where the definitive course of development that the business embraces comes in ad provides the organization a strong and dependable foundation for improvement.

  • Effective approach to pricing

Pricing luxury bags present a distinct challenge for brands like Chanel. Given the name, the emergence of pricing issues is not an uncommon matter to consider. In fact, Chanel does well to justify their pricing strategies through making sure that the product they offer are good enough for the price tag that they come along with. Determining the course of improvement on how such price range is justified basically entails the concept by which modern businesses are not only offering what the market wants, instead, they do more so to create new sets of wants and desires the market could give attention to, thus generating better resources of income for the organization.

Due to the fact that the business intends to promote an essential pattern of status quo, pricing strategies used by the administrators are also assumed to be one of the most effective forms of marketing that the business uses to be able to reach out to the target market it hopes to serve. The price-rate of the bags sold by Chanel are determinable elements that add into the desire of the business to create a definite recognizable status that the customers could be noted for.

  • Market brand recognition

With an established name comes an established reputation; Chanel has already gained the trust of the market, and it is because of such level of trust that the market is able to respond to whatever services of products the business offers. It could be understood that somehow, the brand recognition culture that the organization promotes even from within its own employees affects the overall vision of the market towards what the business is about and how much it could be trusted with their buying concerns.

Chanel luxury bags are considered to be one of their kind; the option of having one’s bag customized to the design they want is also one of the most competitive service that the organization offers for very particular clients. In Chanel, administrators make it a point that the level of satisfaction they give to their clients would be incomparable, if not in par with that of the provisions given attention to by their competitors.

  • Innovative marketing and distribution strategies

Using the internet, Chanel now extends its marketing and distribution activities through online connections. Chanel makes it a point that its operations are largely able to convey the most constructive procedures by which the organization becomes fully attached to the ideal process of making a definite mark on the market it targets to serve even through the internet.

Not to mention the fact that because the product offered by the organization is fashion-based, the need to be innovative is necessary. Making sure that the market demands are met is necessary; creating new forms of designs that would become the market’s object of interest creates a definite insistence on what possible consumer-behavior the business promotes, a matter that largely affects the capacity of the business to earn from its efforts of operation

Weaknesses

  • Human Resource Issues

One of the most compelling and hardest points of operation that challenged the administrative capacity of Chanel managers to face tumultuous times in business was that of the fact that most Chanel branches employ 70% immigrants into its working force. The issue on discrimination and improper handling of employee-diversity were among the primary issues that the business had to deal with. Relatively, this is how the organization thrived for many years.

To defend the business and its capacity to serve the needs of the market through serving the needs of its employees first, the Chanel general administration culture has been adjusted through time to be able to cater to the specific needs of the work force, including matters that would improve the satisfaction they have in the jobs they are assigned to complete.

Opportunities

  • Growing with Technology

Just during the past few years of recognizing the power of technology in providing a faster boost towards the growth of the business in the face of international operations has been a key factor towards the more improved form of growth that Chanel currently embraces. It is with the emergence of high end technology and the adaptation of modern courses of operation that makes extensive application of technology into the course of business growth being adapted that makes the pattern for future adjustments in business expansion more feasible for Chanel to take into account.

Relatively, using social media as the fastest and most effective form of marketing that the business engages with proves to be a strong source of business competence for Chanel. The capacity of the organization to impose on the need to establish a name, a brand that would best identify with the desire of the clients to be recognized well with the product released by the organization. It is also through social media that the social status quo that the organization intends to establish becomes evidently effective.

Threats

  • Competition from local and international operators

Competition is a common element of change and development that businesses ought to recognize fully. Protecting the organization from massive competition in the market [especially at the international market] could only be resolved through engaging in effective strategies of market research and market analysis to make sure that the business is able to completely respond to the being and the constructive behavior of the market.

  • Emergence of Copycats

Bags are easy to copy; including the design that the organization releases every now and again for the market to appreciate. However, since not everyone in the market can afford what the company offers, some smaller bag-producing companies take the opportunity of copying what the organization has created and sell them out at a much lower price. This allows even the third world countries to have a taste of what Chanel offers, even though the exact design or quality cannot be copied fully. The threat here is that the market might shift its attention towards these copycats thus lessening the profit earned by the company from its production and distribution operations.

Summary and Recommendations

Relatively, from the point of discussing its history to the point of presenting and analyzing its course of development, Chanel proves to be a successful organization that is able to provide what is needed by the market at the right time. Consistently giving attention to how the business resolves its capacity to improve the way it serves the needs of the market makes a definite indication on how much Chanel wants to penetrate the local and the international market through promoting  a common brand that would be both recognizable and acceptable to the clientele the business wants to serve.

Through time, it is expected that the future holds a larger room for development and growth for the organization. At present, internet operations may be one of the most innovative and expansive patterns of developmental condition that the organization entails to embrace. Consistency in extensive performance is what makes the organization more effective in implementing changes that are most often than not efficient in making sure that the business makes it to the top of being recognized as a competitive performer in the industry.

In the coming years, more challenges are expected to arise. With many competitors rising in the industry, Chanel would do well to protect its competitive stance as it entails to embrace the option of development that it hopes to engage in through continuously applying the determination that its owner has ever since the business started; to serve the public and; to make the customers the central consideration that the business should give attention to. Relatively, it is also expected that the culture of status quo and how well it impacts the thinking pattern of the target market would largely affect the being and the consistent determination of the business to make a name that is well recognized among the members of the community it hopes to cater to. Championing the idea of elitism, Chanel’s name in the market is expected to continuously make a mark on the thinking and perception of the market towards recognizing what luxury bags are about and how pricing options that determine the worth of each bag is supposed to affect their consumption decisions.

Reference

Bartlett C., Ghoshal, S., & Beamish, P. Transnational Management Text, Cases, and Readings in Cross-Border Management (Fifth Edition).

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SWOT analysis

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