Chanel free essay sample

French fashion icon Coco Chanel went from being a struggling hat maker to being one of the fashion worlds most recognizable names. (eHoW. com, 2013)In this essay, I am going to talk about the company named CHANEL. Company over view A woman named Gabrielle Coco Chanel was born in 1883 in France. In 1919, Coco Chanel owed her first couture shop in Paris, giving â€Å"Coco Chanel† a name for herself in the fashion world. In this year ‘Chanel’ is just a name of fashion brand. In 1971 Coco Chanel died at the age of 87. Following her death, German designer Karl Lagerfeld became the company’s head designer. Also in this year, a company named CHANEL was been built by him. Now Chanel is a privately held company it designs, manufactures and sells watches, fragrance, clothes and fashion accessories. The company operates in the Europe, Asia and the US. Chanel brings a new range of clothing and Jewish in fashion shows. We will write a custom essay sample on Chanel or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page (Chanel company analysis,2012) The designers use white and black skillfully to create different style of products. Chanel popularized a simpler yet incredibly chic style for women. The SWOT about Chanel Strengths Compared with other luxury brand, the products in Chanel is more extensive. Some of these are very popular in their domain. For example, the perfume named â€Å"Chanel No. 5† is well-liked by women. Chanel extends their brand’s popularity by advertisements and movies. It has great design group, everyone knows the company’s logo and its products’ high prices although the style and logo about Chanel is simple. Weakness There are about more than 1000 factories and hundreds of exclusive shop to manufacture and sell Chanel’s products in the world. The company has too much different group of employees and shops and it is hard for the management to control. What is more, Chanel makes products by different kinds of materials. The biggest weakness is that some materials are very hard to find, like crocodile, the resource about it is very rare. Opportunities Chanel is a fashion company. The major for this company is to make more and more products by the designer’s inspiration. So they could make new products by coming into contact with different and fresh things. It is to say that opportunities for a fashion company are in everywhere. Another opportunity is that Chanel can also make products for man. Mails are also a part of customers in our word. Treats For Chanel, a famous fashion company, the biggest risk is also designer’s inspiration. Not only for clothes handbag and jewels designed but also for the research on cosmetics. These years, Karl Lagerfeld the top designer in Chanel does not have too much break through in his works. Fashion changed every times, no one can forecast what will fashion like in future exactly. External analysis of Chanel (general environment) Women are the large rant of the customers in Chanel. Chanel solve their produces by using the form of boutiques. webcollage,2012 )This strategy can steadily reflects its top quality and unique features, and make customers feel their honorable status of service standards in the same time. All of this about Chanel is going to attracted customers in females. Women are always buying some thing because of the shop’s fantastic interior decoration or the good service. The most important thing is that, women are always yearning because of the unique charm of Chanel products. Its high prices let ordinary consumers prohibitive, but brand positioning become more and more elite. Chanel, 2012 )There is a fact that Chanel strengthened its weight of the most closely series products in order to attract more rich one to buy it. It is very common that people especially women in the society will never give up the pursuit of good things, and in their mind the more expensive the better. In many times having a handbag in Chanel or wearing clothes in this brand could win a lot of second glance. Certainly, a famous brand is not only based on the high pries but also its high quality. In this society customers pay more attention on the quality of the products. For example, haute couture is one of the most famous products n Chanel. Because of its high quality, many people are willing to spend their times to amend and fit on the clothes again and again, even it will c ost them a lot of money at the end. What is more, a large number of handbags in Chanel were made in individual workshop by the professional employees. The good services and delicately made help Chanel win a lot of customers and profit. External analysis of Chanel (competitive environment) This kind of external analysis of a company can be examined at five levels competitors, new entrants, and threat of substitutes, suppliers and customers. First of all, Chanel has a large number of competitors. The following companies like Levi Strauss amp; Co, Louis Vuitton SA and Prada are the major competitors of Chanel. (3Y,2012) Back to the nature, Chanel is just a company to sell bags clothes cosmetic and jewelry. There are many companies have the same characters in the world. They are all fashion companies. Inevitably, different brands are always having similar products, although fashion is a very complex word. Take LV for example, in 2012, LV designed a bag which is most likely to Chanel 2. 55, and the price is lower than it. For consumers, it provides more choice to chose, but for Chanel, it was bring a big challenge to hem. They have to increase the production rate and designer’s mind in order to attract buyer’s attention earlier than any other brand. Secondly, the emergence of the new fashion company is bringing some risks to Chanel. Most clearly, Valention a new luxury company from Italian have had a lot of improvement over the past year. This company is not only for bags but also popular in weeding dress. To be honest, women are always most interested in the new things. When something new was appeared in our eyes, the old brand would become more common. What is more, the threat of substitutes is playing a significant role. It is due to the fact that many small brand companies are going to sell the products in same style as Chanel and other fashion brands with good qualities but in lower price. For most people in the world, they are not willing to spend more than 10000 RMB to buy a bag. Their consumption view is very rational. It would happen that people could buy a bag which is most similar to the big brand with low price. It is not only a big risk for Chanel but also for any other big fashion brands to increase the client base. More over, the suppliers of Chanel are one of the most important events for this company to consider. The power of a supplier increases when there are few other sources of supply or the supplier has many other buyers. (Luis, David, 2012, P71) For example, in the past three years, the bag which is made of crocodile is very popular. As we all know, crocodiles are the first class national protected animals in the world, because it is very rare. Chanel tries to manufacture bags by the crocodiles. Unfortunately, it is very hard for the company to get this resources from suppliers, for instance, there are any other fashion companies want to get crocodiles to make products, and the suppliers are always could offer a little number of resources. Because of this, the cost about the bag is going to increase. It is hard for Chanel to get more profit by selling the bag. In order to solve this problem, Chanel are try to use PU a kind of material which looks more likely to crocodile. In this way, the company could save cost and increasing profits. Last but not least, the bargaining power of buyers is not very strong for Chanel. This kind of power increased when the number of customers in this company decreased. In term of the saleroom about Chanel in these years, this company must have a large number of customers that the power of buyers is very week. One example is that Chanel have to satisfy every require which customer needs if there is only one customer to buy their products. It is necessary for Chanel to improve their quality, serves and maybe to decrease their price. Conversely, in real life, Chanel has a large number of supporters. More clearly, if there are 100 customers to buy their bag, one of the customers is not satisfied with their serves; Chanel also has 99 customers to buy it. So, Chanel does not need to worry about the bargaining power of buyers. The internal environment analysis of Chanel Resource types and firm capabilities are tow main factors for a company of their internal environment. The inputs a firm uses to deliver products and services can be tangible resources and intangible resources. ( Luis, David, 2012, P73) Tangible resources is easy to qualified including financial resources and man power. China has been the fast growing luxury consumers in the world. In the year 2012, compare with the past year, the luxury goods saleroom increased 23%. This number has same meaning as 843 hundred million RMB. Chanel is for one-third of these luxury goods. Yidaba,2010) The most important is that China is one of Chanel’s markets, Chanel has its own flagship store all over the world. What we can image is that the profit about Chanel is uncountable. Different with some big company which have a large number of staff, Chanel only has about 2000 staff in their company include designers. Although Chanel does not have too many staff, every one is outstanding. The brand is now headed by German-born designer Karl Lagerfeld, who is famous and helps Chanel win a lot of applause. Many topping staffs like him are working for Chanel. The strong unman capital is also the intangible resources about Chanel. Producers and designers bring their own opinions and experiences to make the company grow well. The firm’s reputation is also a very important part in the intangible resources. Chanel is a well-know brand in our world during the young and the old. A lot of women crazy about it because of its high quality and good services. In customers’ eyes it is only right and proper for Chanel to have such high prices because of its reputation. In another aspect, the skills and abilities in doing work activities needed in its business are the capabilities of the company. Luis, David, 2012, P74) The success about Chanel No. 5 shows the great capabilities about Chanel. Chanel No. 5 is the first fragrance launched by Chanel. It cost about 5 years to research and development. Every stage is very rigorous include sampling concocting packaging advertising and selling. Conclusion Chanel might be regarded as one of the l eading fashion companies in the world, however, external forces such as technology, suppliers, bargaining power of customers, market demands and some new entrants could pose threats to its leading position. To respond to these threats, Chanel has to adopt sound management practices which include effective planning, organizing, leading, and controlling. It is advised that, Chanel could try to open up new market, for instance, manufacture products for men. In order to let the products become more diversified, Chanel could research and development perfume jewelry and clothes for men. In the other hand, fashion changed quickly. There for it is good for Chanel to interview new designers. Not only maintaining the classics style with black and white, but also break new ground based on it. It could let the company become more productive. One most important thing for this company is that to improving the power of management about planning and controlling. Although, hand tailor is very delicate, it well cost a lot of times to manufacture. For Chanel, might be able to use some new technology to develop the speed. More over, to controlling the market demands, Chanel could properly increased the price in every year. It could help them get more profit and show its products’ value in a good way. Reference The History of Coco Chanel. (n. d). Retrieved February 3, 2013, from http://www. ehow. com/about_4595780_history-coco-chanel. html#ixzz2JGTO3Hu0) Chanel company analysis. (n. d). Retrieved February 3, 2013, from http://wenku. baidu. com/view/a6bf073467ec102de2bd89e1. html Chanel Extends Online Beauty Tools To Retailers Worldwide Using Interactive Web Services Solution. (n. d). Retrieved February 1, 2013, from http://www. webcollage. com/about-us/press-releases/chanel-extends-online-beauty-tools-to-retailers-worldwide-using-interactive-web-services-solution/ Chanel. (n. d). Retrieved February 3, 2013, from ttp://wenku. baidu. com/view/17e4e086e53a580217fcfe04. html Chanel company analysis. (n. d). Retrieved February 3, 2013, from http://3y. uu456. com/bp-a6bf073467ec102de2bd89e1-1. html Luis,R. David, B. (2012). Management. Hagerstown: Congress Cataloging. Luis,R. David, B. (2012). Management. Hagerstown: Congress Cataloging. The Luxury Consumption Market In China. (n. d). Retrieved February 3, 2013, from http://industr y. yidaba. com/fzfzpg/201012/011241591007100100000205026. shtml Luis,R. David, B. (2012). Management. Hagerstown: Congress Cataloging.