Strategic Frameworks for Luxury Brands: Amazon, Bottega Veneta, WRSX

This report provides a comprehensive analysis of strategic management within the luxury brand sector, focusing on case studies of Amazon, Bottega Veneta, and WRSX. The report explores the strategic positioning, choices, and actions of each brand, examining their objectives, market entry strategies, and responses to competitive environments. It delves into the strategic frameworks employed by each company, including the use of stakeholder maps and the influence of various stakeholders on brand performance. The analysis includes an examination of Amazon's entry into the luxury market through Shopbop, Bottega Veneta's expansion strategies, and WRSX's stakeholder relationships. The report also discusses the application of strategic tools like Mendelow's stakeholder mapping and explores how brand equity is affected by consumer perceptions and brand loyalty. Overall, the report offers insights into the challenges and opportunities faced by luxury brands in today's market.

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PART 1
Introduction
Strategic management is the setting up of objectives for the organization, analyzing the
competitive environment for their goods or services, analyzing the internal systems of the
organization, evaluation of strategies and ensuring that the management sets the strategies for the
organization. Luxury brands however have a different brand strategy and organization strategy.
In this assignments, we take a closer look at BottegaVeneta, Amazon and WRSX. Various
strategic frameworks are undertaken for the three organizations where various strategic tools are
set. The description highlights the brand goals, mission, vision and values (Cavender, and
Kincade, 2015).
Strategic framework includes exploring the strategic position of the company, strategic choices
and strategic in Action.
CASE 1: AMAZON
Amazon ventured into luxury market in the year 2006 after its acquisition of Shop bop, a luxury
retailer that was catering for the needs of women through selling of high end women needs.
Amazon fashion was floated in 2012 and was geared to the introduction of high end women
clothes. Through fashion and the multi-billion fashion industry, Amazon fashion wanted a piece
of the pie. Amazon collaborated with top notch models, make-up artists and designers in addition
to having well stocked designer brands. It collaborated with high brand designs like Michael
kors, Tracy Reese, Vivienne Westwood and Catherine Malandrino (Chailan, 2018).

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Strategic position and objective
Amazon had relished success for almost two decades. In 2006, it entered into brand luxury
marketing and selling with the acquisition of Shop bop. The objective of Amazon in this strategic
move was to create a shop bop site that was to overcome the competition from Net-A-Porter. Its
objectives as stated by the ex-president of Shopbop.com was to make better for the interaction of
customers with the marriage between technology and high end fashion.
Another objective for amazon was to attract other high end luxury commodities by creating
Amazon Fashion in 2012. Bezos had a strategy of ‘go big and spare no expense” for the selling
of high end clothing lines. Amazon through its mammoth online shop has now positioned itself
at one of the best online shopping sites through Amazon Fashion to acquire high end luxury
brands.
However, some luxury brands were against Amazon and other online shops from selling their
products. This is because Amon selling their products appeared too commoditized while some of
them wanted to fully own their rights to selling. A legal battle ensued where a German luxury
brand sued Amazon and the ruling was done in favor of the complainant. On the flipside, upon
entering the fashion industry apparel sales increased to triple digits through new age computing.
Strategic Choices
The strategic choices for Amazon was that it focused on online fashion shops through acquisition
of Shop Bop. It also created the Amazon Fashion to help integrate technology and fashion.
Luxury clothes and commodities became easier through online shopping. Amazon started an

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application to digitize operations of its online shop that would cover even the logistical aspects
of sales. Sales increased due to the ability of amazon to deliver easily to its customers. Other
strategic choices include; easier delivery, easier marketing and easier access to luxury brands.
The management model in Amazon Fashion is fully digitizing the luxury brand market and to
make it easier for buyers to interact with their favorite fashion brands.
Strategic Action
Amazon started an application to digitize operations of its online shop that would cover even the
logistical aspects of sales. As the biggest online retail shop, amazon set its sights to acquiring
smaller luxury shops like Shop Bop and setting avenues for easy delivery. Other strategic actions
include; easier delivery, easier marketing and easier access to luxury brands.
CASE 2: BOTTEGA VENETA
Strategic position and background
Bottega Veneta was a small Italian company that started in Vicenza neighborhood by two
people. The artisan nature of their product made it so luxurious that it wanted to be acquired by
luxury company Gucci. Initially, it was build to cater to the Italian market but as the demand of
its bags increased, it became more and more aware of its needs to expand.
The strategic objective of the company was to produce high end leather bags to attract Italian
consumers but later due to their stealth luxury they went international. Its objective later became
to expand to other regions like Europe, America and India. They were rewarded for opening

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shops in strategic locations such as Germany, Paris, France, and New York, Manhattan and 5th
Avenue. The evolution of the Italian brand started by marketing in clothes shops and then going
into opening their strategic shops all over the world (Hoffmann, and Coste-Manière, 2016).
Strategic choices
Bottega had a very good choice of opening its shops in different parts of the world. When
Vittorio refused the company to be bought by Gucci, it was the beginning of a revenue struggling
company to open its sites in markets especially the America. This was due to the greater need of
Americans to buy top notch Italian bags, their value in quality, the Italian population in the US
which needed the same and the ability of the company to produce the best in terms of bags. The
French conglomerates are very good in managing the Italian fashion brands.
Strategic Action
The strategic action was the acquisition of Bottega Veneti by French luxury brand Gucci. It
opened the brand to a wider market through introduction to a bigger audience. Opening of
Bottega stores in strategic places like Milan, New York, Paris and Munich which are fashion
hubs was the beginning of a successful action taken to increase its marketability. Italian brands
have been critically acclaimed as one of the best in the world. The Italian entrepreneurs should
create more brands due to their ability to produce some of the greatest products in Luxury
brands. Italy is known as the land of fashion. As soon as one introduces an Italian luxury fashion
brand, it automatically has a value (Kapferer, 2017). Their products are top quality and are best
sellers all over the fashion world. Italian entrepreneurs should create more brands. . Initially, it
was build to cater to the Italian market but as the demand of its bags increased, it became more

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and more aware of its needs to expand. The “No Logo” strategy also played an important role in
strategic positioning and sales of Bottega.
PART 2
The stakeholders map in the interest of the three luxury brands plays an important role in how
the brand is viewed and how it performs in the market. Using the Mendelow stakeholders
mapping and networks form, all the three brands and especially the WRSX company has been
greatly influenced to perform way better. In the case of Bottega and Amazon, stakeholders
influence and alliances with various stakeholders led to potential and increased growth of the
brands exponentially.
Mendelow Stakeholders map
Interest of stakeholder
High power, low interest
Meet their needs and keep
satisfied
High power high interest
Key player engaged closely
Low power, low interest
Least important
Minimal effort
Low power, high interest
Show consideration

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Keep informed
Influence/ Power of stakeholders
WRSX
This is a communication and advertising company that was formed after a merger between three
highly successful companies to form a big company. The stakeholders in the merger ware the
partners to the companies and the clients and agents .All the three companies came from
different countries with years of experience and directors or partners that were worth the salt.
The partners were valuable assets of the company with high quality talent and experience that
was all joined to form a big corporate communication and advertising company.
Interest of Stakeholder
London Based Office
Meet their needs and keep
satisfied
Paris Based Office
Key player engaged closely
American Office
Least important
Minimal effort
American Based office
Show consideration
Keep informed

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Obviously, this impressive list of all individuals or legal entities that may affect the business is
not exhausted. The concept of stakeholders that form both the economic and human
psychological environment of a business or an individual project is so important that well-known
management expert Edward Freeman formulates the key and only goal of any organization as
achieving a balance of interests of stakeholders (Kapferer, and Valette-Florence, 2016)
In this paper, we will look at four tools that have proven themselves in practice: sides
(Stakeholder’s Map), interest table, matrix "support × power of influence",
Integral measure of the business environment (or project environment) - the formula of Alexei
Pirogov.
The latter formula was developed during the training with the staff of WRSX, conducted by the
first of the authors. The assessment methodology incorporated in this tool was proposed by the
Vice-President of WRSX. But before proceeding to the analysis of the features of an innovative
brand and branding, it is important to define what the brand itself is? At present, there is no
single definition of the concept of “brand” in the management methodology and business
practice in Russia and abroad, which is enshrined in regulatory documents. But such a definition
cannot be considered complete, since it is a fragmentation of the brand into its individual
elements and does not give an understanding of what, then, the brand differs from the brand.
Therefore, it is important to emphasize that a brand is not just a set of external attributes of a

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product, as well as expectations, associations that arise in the mind of a consumer at the mention
of a certain brand of goods or services. As T. Gad notes, the most accurate definition of a brand
will look like this: “Brand is the manufacturer’s ability to follow the promise made earlier”.
Thus, the brand is a figurative, immaterial form of a contract between the seller and the buyer
about the proper properties and qualities of products, which provides not only a high level of
functional characteristics, but also forms an emotional connection with the user of the brand
(Nunes, Bennett, and Shaw, 2016).
Stakeholders position
As three partners who make WRSX, and multiple directors within the partnership, it is clear
there will be a position for each. The Paris office is deemed the most lucrative since board
meetings are done there. The London off ice is also regarded highly.
Thus, brand equity reflects the consumer’s subjective assessment of the brand; it goes far beyond
the perception of only the physical properties of the product and consists of attitudes,
associations, brand awareness and loyalty to it.
CASE 2 : AMAZON
For amazon, it is a high power, high interest stakeholder engaged. Amazon had relished success
for almost two decades. In 2006, it entered into brand luxury marketing and selling with the
acquisition of Shop bop.. collaborating with several other brands to create a bigger and larger
market shows that this is a high value stakeholder. Now let us dwell in greater detail on the
category of “innovative brand”, which implies the creation of a positive image of an innovative

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product, the purpose of which is the development of innovation, a concentration on its target
audience and wide distribution in the target group.
Interest of Stakeholder
Amazon
Meet their needs and keep
satisfied
Amazon
Key player engaged closely
ShopBop
Least important
Minimal effort
Shop Bop
Show consideration
Keep informed
Stakeholders position
Amazon is the high power stakeholder. It holds the upper position both in the market and in
strategic positioning. In modern times, in order to succeed in business, it is necessary to go the
way of creating an outstanding product, that is, at least one more component must be added to
standard 4P marketing - the “purple cow” 5, that is, the innovative idea for the formation of the
identity and uniqueness of the product. And this means that one of the most important tasks for
modern business is the formation of a new, yet unknown part of the market independent of

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competitors, or, in other words, the use of the “blue ocean” strategy 6 where creative approach is
very important.
CASE 3: BOTTEGA VENETA
Bottega Veneta was a small Italian company that started in Vicenza neighborhood by two
people. The artisan nature of their product made it so luxurious that it wanted to be acquired by
luxury company Gucci. Gucci was a high power, low interest stakeholder with interest in
meeting Veneta needs and keep it satisfied. Other stakeholders includes sister companies like
Fendi.
Stakeholders interest
Gucci
Meet their needs and keep
satisfied
Gucci
Key player engaged closely
Bottega Veneti
Least important
Minimal effort
Bottegga Veneti
Show consideration
Keep informed
It is important to note that an innovative brand can help not only high-tech companies, but also
be used in the field of innovation of a completely different quality and content, namely social

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innovation. The purpose of this type of innovation is the development and application of new or
improved forms of activity, initiatives, services, processes or products created to meet the social
or economic needs that modern society faces (Seo, and Buchanan-Oliver, 2015). Based on
statistics, we can conclude that the number of companies of this type is increasing every year. At
the same time, brand management technologies for non-profit innovative companies, on the one
hand, can be a source of effective satisfaction of society’s needs through the use of social
innovations, and, on the other hand, a brand-oriented innovative non-profit company can be a
strong player in the innovation infrastructure in the form of innovation diffusion centers.
Stakeholders position
Gucci is the high power stakeholder. It holds the upper position both in the market and in
strategic positioning while Bottega is the brand that needs a lot of help in the market position.
It should be noted that the creation of a strong brand is possible only with the support of a high
quality product, where the company’s management takes care of both internal and external
Conclusion
Thanks to consumer confidence, strong brands more easily overcome risks when selling, for
example, when launching a new product, a company can count on a share of loyal customers.
Brand investments are equal to investments in the future of the company and its success in the
market. A strong brand helps to increase the brand equity, which is the company's most valuable
asset (Vezzetti, et al,2017). The results of the development and management of the brand take a
variety of forms, and yet the main one in many industries is capital generated by the brands of
companies. By creating value, brands reduce the risk to the consumer and they themselves exist

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as long as this risk is perceived. When the risk perceived by the consumer disappears, there is no
longer any benefit from the brand.

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References
Cavender, R. and Kincade, D.H., 2015. A luxury brand management framework built from
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Chailan, C., 2018. Art as a means to recreate luxury brands' rarity and value. Journal of Business
Research, 85, pp.414-423.
Hoffmann, J. and Coste-Manière, I. eds., 2016. Luxury strategy in action. Springer.
Kapferer, J.N., 2017. The End of Luxury as We Knew It?. In Advances in Luxury Brand
Management (pp. 25-41). Palgrave Macmillan, Cham.
Kapferer, J.N. and Valette-Florence, P., 2016. Beyond rarity: the paths of luxury desire. How
luxury brands grow yet remain desirable. Journal of Product & Brand Management, 25(2),
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Nunes, B., Bennett, D. and Shaw, D., 2016. Green operations strategy of a luxury car
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Seo, Y. and Buchanan-Oliver, M., 2015. Luxury branding: the industry, trends, and future
conceptualisations. Asia Pacific Journal of Marketing and Logistics, 27(1), pp.82-98.
Vezzetti, E., Alemanni, M. and Morelli, B., 2017. New product development (NPD) of ‘family
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solution. International Journal of Fashion Design, Technology and Education, 10(2), pp.219-
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