Product Analysis
Dolce & Gabbana (D&G) is a market leader in the fashion industry globally. It is headquartered in Milan, Italy. Owned by Domenico Dolce and Stefano Gabbana, D&G’s current product portfolio includes the clothing, fragrances, eyewear, footwear, and accessories. The company is ranked among the top brands due to a variety of factor as presented below.
Strength. D&G has several strengths chief of which is its strong global presence as a luxury brand. For a product that is targeted for the upmarket segment, a sense of style and sophistication goes a long way to attract new clients as well as maintaining already existing ones. As indicated by Ranchhod, Călin, and Ebi, as a top brand in the fashion industry, D&G enjoys the support of celebrities all across the world such as Katy Perry and Eva Mendes (353). The company also has a large product portfolio ranging from clothing to shoes for both men, women, and children, jewelry, fragrances, makeup, in addition to travel bags and handbags. This allows the organization to cater for a wide audience globally.
Weaknesses. Stakeholders in the fashion industry agree that publicity is a bonus for any brand that takes part in this highly competitive environment. However, Dolce & Gabbana, as a brand, has been hitting the headlines for all the wrong reasons. Recently, the company has been dealing with a number of tax evasion cases that have led to continued negative publicity. Nevertheless, the biggest weakness has come from some obnoxious comments on gay rights by the designer duo who have gone on record condemning same-sex relationships an issue that has led to various top A-list celebrities boycotting the brand (Visconti 133). Another issue that has continued to plague Dolce & Gabbana is high costs of operations, which adversely affect the company’s profit margin and competitive abilities.
Opportunities. Currently, Africa and Asia have made significant strides in providing the fashion industry with new avenues of presenting and selling their products. For a long time, Dolce & Gabbana has been predominately made for the western market; a partnership with strategic fashion stores in both regions will give D&G an upper hand in the market.
Threats. The biggest threat to Dolce & Gabbana is competition from other top brands such as Prada, Louis Vuitton, Versace, and Armani. The other threat comes from cheap imitations that are more affordable.
Fig 1: D&G SWOT Analysis table
| Strength Strong brand image Portfolio of brands Broad customer connects Celebrity Support | Weaknesses High costs of operations Controversies |
| Opportunities Expansion of emerging markets | Threats Counterfeit products Competition from other luxury fashion brands |
Rival Analysis
Strengths. Currently, LVMH (Louis Vuitton Moet Hennessy) is considered the most valuable luxury brand globally. As indicated by (Ranchhod, , Călin, and Ebi, the Louis Vuitton Moet Hennessy brand value was estimated at 41.14 billion U.S. dollars as of the end of 2018 (365). Gucci is ranked second, Prada third, Versace fourth, and Zara fifth. All the above brands share a significant strength of a renowned global presence and all have a wide range of portfolio.
Weakness. All the above brands have a significant amount of resources that are used to provide a positive public image that adds their competitive advantage. The biggest weakness, however, for all the above brands comes in form of price. As top-end luxury brands, Gucci, Prada, Versace, and Zara all have an average selling price higher than D&G. This limits all of them from launching products in emerging markets where the household income does not sustain high price purchases.
Opportunities. The above-mentioned brands may be headed to a boom, as most parts of Europe’s middle class in nations such as Italy and Spain seem to be stabilizing financially
Threats. The current threat for the above-mentioned brands comes in the form of counterfeitproducts.
Conclusion
Dolce & Gabbana currently enjoys the privileges of one of the leading luxury brands globally. With years of heritage, sophistication, and style, D&G has a significant market influence in the fashion industry as shown in the product SWOT analysis provided in the paper. Nevertheless, the threats from larger more famous brands pose a threat to the brand. For the management of the company to maintain sustainable competition, the company needs to launch its product in emerging markets such as Asia and Africa.
Works Cited
Ranchhod, Ashok, Călin Gurău, and Ebi Marandi. “Brand names and global positioning.” Marketing Intelligence & Planning 29.4 (2017): 353-365.
Visconti, Luca Massimiliano. “Gays’ market and social behaviors in (de) constructing symbolic boundaries.” Consumption, Markets, and Culture 11.2 (2016): 113-135.