Christian Dior Case Study

On the other hand, evaluation and analysis of resources helps a business to know the resource advantage both infrastructure and human to improve skills in the organization for maximum profits in future. The analysis of the institution helps one to look into the laws that govern industry as well as property rights and ownership of the company. Christian Dior is a luxury brand company which deals with the manufacture and distribution of the fashion goods (Zotoff, 2015). Established by the late Christian Dior who was French, the company has continued to dominate the fashion industry not just in France but also around the world. Therefore, it is important to take a look at the case study of the firm by analyzing industrial perspective, resource evaluation, and institutional analysis to see what the future market of the company is and expected to look.

Fashion industry has a couple of big players that are currently competition with Christian Dior. Chico Company is the second biggest rival of Christian Dior Inc. which is located in Florida and generates revenue of more than $39. 3 billion. Givenchy Inc. Branding and advertising strategy is excellent as the firm has an increased budget for the same. The firm also boosts acquisition of Louis Vuitton which is one of the greatest firms in fashion design has increased the firm’s reputation and popularity in the world. Weakness There is a tough competition which limits the market share of the firm in the global market. The company also has to bear with the fluctuation of the interest rates in different countries because of the multiple stores in different countries in the world.

The company also has to deal with brand replicas in the market which compromise the popularity of the company in the market. The company recorded revenue of 43. 7 billion dollars in 2017. This means that the firm is able to compete with other firms when it comes to resource allocation which includes allocating money for the promotion and marketing of her brands in on the global market. Apart from Apple Inc. , there are a few countries that have been able to post such revenues and profits at the end of the financial year (Mistry, 2012). The website was selling and producing goods that looked like the ones sold by Dior using the trademark of Dior Inc. therefore, in the contemporary set up, the firm is dealing with the challenge of ensuring that there is no imitation of products especially in countries where piracy and copyright laws do not protect foreign countries in a maximum manner.

Organization of the firm from the management of the assets to attendance to the customers by the human resource management unit is one of the best. The ability of the firm to organize competitive advantage by balancing costs and using popularity of the brand in the market to generate more profits makes the firm to be stable and withstand financial tides in the market. However, the firm will need to ensure that it does improve copyright and ability of making the products unique to eliminate imitation for it to compete well in the market (Scott, 2015). The tax reforms in foreign countries have also so far been positively considerable in ensuring that the company does incur moderate costs in the market. Corporate Social Responsibility There is always a relationship between a company’s corporate social responsibility and the customer buying patterns of the products in the firm.

A firm that has a good social responsibility increases sales as customers always associate it with quality and responsibility to their demands and quality of products they offer them. In a study conducted in 2017, Chinese consumers of luxury products appreciated the fact that the company’s corporate social responsibility did affect their buying decision from certain companies. An extension however of social responsibility does not necessarily extent to sustainability. The company has reduced substantially the use of the PVC which was not a sustainable plan for the consumers. The company is also working on reduction of the emissions of the carbon dioxide in her manufacturing plant by 20 percent in the next five years. Chromium reduction is also a top priority for the company in the fight against environmental pollution.

Strategic Alliances The firm has established strategic alliances with Louis Vuitton have increased the recognition of the company in the corporate market (Zotoff, 2015). There are different factors that informed the firm in acquiring part of the assets of Louis Vuitton which is considered to be one of the best Companies in on the global market. Therefore, when the company requires entering into a partnership or any alliance, it will be important to adhere to the aforementioned objectives and strategies to succeed. Conclusion The firm deals with the production and distribution of the fashion and cosmetic luxurious products in the firm. The company is well known for her sale of luxurious brands at a higher price compared to her rivals. Most of the customers that frequent the firm stores are from high earning class in the society and most of them include celebrities who like to buy brand and quality of the products not caring about the price.