Michael Kors Profile
Michael Kors is a brand that not only deals in extravagant fashion but also in other sections such as footwear, eyewear, sportswear, accessories, and handbags. Although the company is American founded, it also has stores and boutiques in various cities like New York, Paris, London and others according to Shepard & Comsa (2013). Its expansion across the world is proof of its popularity as suggested by Prasso (2010) and hence the need to fill this market. Nonetheless, this lack can cause significant problems for the company. For example, Michael Kors products have been sold so many times that most clients have attained the products they want reducing its market as stated by Halme & Rissanen (2015).
The company’s core member is Mr. Kors, the designer who won CFDA Vogue fashion. This award is among the most respected awards in the fashion industry (Kelesidou, 2014). This success aids him maneuver improvements faster in operational productivity while increasing the gross revenue of the company. Michael Kors also creates awareness of the brand through offers of the product at reasonable prices and first-class quality which appeals to female clients who make a large portion of the market. Kelesidou, (2014) ascertains that this strategy of focusing on women more than men disadvantages the company when it comes to sales as men have fewer options. This was seen in the European fashion industry when Michael Kors did not perform as well as other fashion designers.
The European market has a demand for extravagance that the company could not satisfy due to some of the products’ lost competitive edge.The failure in the European market was eye-opening and Mr. Kors saw an opportunity to expand in the men’s wear division and appoint a new president. In his article, Berfield (2014) states that the plan entails presenting a lot of advertising on the new fragrance and watches anticipating a growth of approximately 14% by 2016 as compared to 2011. Although the Kors plan would allow the company to grow, it would still face competition from Coach and Tory Burch, a warning to the enterprise (Kelesidou, 2014).
Conclusively, the company has a large market, but it shares with other businesses such as Donna Karan, has the same traits as it does as studied by Michael Kors (2016). Ralph Lauren, another competitor is more accessible while VF Corp has the biggest net income (Michael Kors Holdings, 2016). Despite the existence of its competitors, the 10-K Report (2016) clearly indicates the positive progress the company has in contrast to the previous year. According to Michael Kors Holdings Limited (2015), this growth will continue due to its luxury brand, its famous designer and the self-assurance of being a part of accessories industry.
Berfield, S. (2014).Michael Kors, With Surging Sales, Is Ready to Go After Men. Bloomberg Business. Retrieved from http://www.bloomberg.com/news/articles/2014-02-04/michael-kors-with-sales-surging-targets-the-kors-manHalme,
M., & Rissanen, A. (2015). The Influence …