Detailed SWOT Analysis Report on Michael Kors Fashion Brand

This report provides a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of the Michael Kors fashion brand. The introduction outlines the importance of analyzing a company's environment and structure, highlighting the application of tools like SWOT analysis. The report then delves into Michael Kors's background, including its founding, headquarters, financial performance, and workforce. The SWOT analysis itself examines the company's strengths, such as its product quality, brand recognition, effective marketing, and extensive retail presence. Weaknesses, including economic downturns, geographic limitations, and fabrication challenges, are also discussed. Furthermore, the report identifies opportunities like brand popularity, performance metrics, positive brand perception, and customer demand. Finally, it addresses threats such as competition from other firms offering similar products, competitor pricing strategies, and the increasing number of competitors. The report concludes with a summary of the key findings and includes a list of references used for research.

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
About the company ................................................................................................................1
SWOT ANALYSIS OF MICHAEL KORS....................................................................................1
Strengths .....................................................................................................................................1
Weaknesses.................................................................................................................................2
Opportunities...............................................................................................................................3
Threats ........................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
For all organisations across the world their aim is to make profits by understanding the
requirements of customers and fulfil them by providing services and products to the users. So,
firms analysing their environment and structure by using various methods like pestle, swot,
porters, marketing mix etc. So, This present report is on Michael kors, which falls under fashion
industry and its headquartered in America. It is providing goods to the customers such as
footwear, watches, apparel, accessories, and handbags.
About the company
The Michael kors is providing their products across the world. The headquarters areas
located in United states and New York. Organisation is founded in 1981 by Michael kors. John
Idol is the chairman and Michael kors is the director of firm. According to 2016, The firms
yearly profit is around 839.1 million USD and the operational income is 1.16 billion.
Furthermore, the enterprise total assets around 2.57 billion and equity is 2 billion. Organisation
have 12689 staff members for providing services and goods to the end users.
SWOT ANALYSIS OF MICHAEL KORS
SWOT analysis is analysing the strengths, weaknesses, opportunities and threats of
company. It is the way of identifying points which are effecting the firm. It is basic structure for
enterprises to know their goods and services entity. Below given are the SWOT analysis of
Michael kors:
Strengths
 Products: It is the major entity for every enterprise. The quality of products is
always taking place in people’s mind. Michael kors providing ladies clothes from
last thirteen years. Firm is also supplying online selling of their goods from
various sites. Enterprise sometimes makes sale for attracting more people and also
making profit. Organisation is providing their products in 91 countries. Such as,
Brazil, Aruba, Canada, Panama, Japan, China, Taiwan, etc. In 2015, around 1500
boutiques and 550 stores launching by firm. Enterprise is mostly famous for
providing different patterns goods in handbags and watches. Organisation is
running strongly in market from several years with their products.
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 Brand: It is ensuring by public that branded goods are more reliable and
workable as compared to local products. So, enterprise maintaining their brand on
its goods by using life cycle. Celebrities wearing these firm’s clothes on red
carpet at Hollywood. Michael kors products are used in various events and
functions by people. The services and products of firm is provided also in
domestic markets. Goods are provided by firms which are legal, worthy, quality
and branded.. Firm is famous for its brands. It is important for selling products
because it helps in quality and that can be measured by branding.
 Publicity: Marketing is done using various sources in an organisation. Like
television, mass mailing, advertisements, pamphlet and also offering discounts
and schemes. It is playing major role for promoting the new as well as existing
products in market because awareness of people is important for selling of
enterprises products . In reality programs, Goods such as accessories and apparel
are displaying in the TV. Enterprises providing high quality in their products Like
watches, clothes, accessories, etc. So, in events many celebrities are probably
using Michael kors products. High branded quality is recalling by many people.
 Various boutiques and stores: It is the place where customers buying the goods.
So, Michael kors have several places and areas for providing quality goods. The
firm has around 550 stores are launched in 2016. Events also helps for promoting
their sells like watches, accessories, clothes etc. In Geoffrey been lifetime
achievement awards, the youngest recipient was kors. Firm containing lifetime
achievements and fragrances from the FIFI award foundations. These
achievements also improving the image and sells of firm’s products.
Weaknesses
 Economic downturns and recession: In economy, profit is playing important role for
businesses. Enterprises always trying to make benefits but downturns of economy are
making low less income. Sometimes, community is claiming on some products as prone.
In the fashion industry, changes are always made according to time. Sometimes demands
of goods by customers are changed in order to time. The recession is always impacting on
businesses by changes or declining economy. This is dropping the indicators for
economy. Such as, staffing sales of retailing, manufacturing, financial profit and GDP.
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 Geographic presence: It is an important strategy for all the firms for selling their
products which includes potential and existing market. So, the firms are responding via
creating different goods according to the requirements in various regions in several
countries. So company is active in all around 91 countries . Organisation is effectively
doing and providing the products in order to client’s needs. So, for all these things firm is
deeply analysing the areas in order to countries. So, using this information some specific
areas, peoples andtheir trends enabling and creating the new opportunities for enterprise.
Analysing people and their data, also improving experience and skills of analyst in an
enterprise in the strategy of geographic presence.
 Lack of fabrications: The fabrication is the way of making products from raw materials
to ready-made. Before finishing, elements are assembling with other components., Lack
of raw materials impacting and is the weakness of the Michael kors. These things in
organisation from initial to end process, objects are essential for making the products of
enterprise. So, the businesses firstly analyse area and region then firm is providing their
services and products in order to deeply analyse the details of each area.
 Interest on products: After making selling process of products interest is taken by
manufacturer, wholesaler, retailer and also including the government tax., These rates
maximize or may be minimize according to government laws. So, these rules and
regulations are affecting on business profits. These are beneficial or loss for firm because
it always changes in order to regulations. Interest is taken by the government that
depends to its country. Transferring from one place to another is also including the
interest on goods. Like UK government has fix value rate of interest for transferring
goods.
Opportunities
 Famous brand: Products quality and status of Michael kors is also making popularity for
its goods. Such as in the watches, accessories, etc. These are also majorly used by
feminists. In developed countries like United states, this is very familiar for people in
branding . Well known image of firm is also helping in awareness of its products in
selling market. The celebrities of Hollywood are wearing their goods such as, watches,
accessories and clothes, so, it also helping to make more famous enterprise and its image
for goods. These fames walking on red carpet using firm’s trademarked products. People
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always like to purchase popular, quality and branded goods. So, the firm is giving
according to requirement of customers.
 Performance: Analysts belief is based on people’s purchasing power that mostly
selecting to buy Michael korn's products so the firm is assuming that the performance is
implementing according to fashion trends and time. It helps the organisation to enable the
procedure so it will evaluate retrieving aims of company. In these processes goals are set
before making planning of performing functions in management for performance. This is
measured by the enterprise’s income and market by knowing its management and selling
of products in market. Firm is growing rapidly because of their goods and its
requirements in marketplace by clients.
 Positive statement and brand saliency: Customers mostly use the Michael's kors
products. Such as, watches, accessories, handbags, etc. So, these are making more
benefits for company and also displaying their positivity on enterprises brands and its
goods. Wideusage of Michael's kors products makes a positive statement for analysts of
firm. Using by these goods in several countries creating value and image of organisation.
Company’s brand and its quality more important. The condition of client for purchasing
goods is observed by firms by level of brands.
 Demands of customers: In Various shows and reality programs, peoples and fames
wearing Michael kors products so it makes more popularity of that goods. So, people like
to buy that watches, handbags, accessories, etc from similar brands. In various countries,
firm goods demand is widely growing according to regions and latest trends. So,
incrementing the demands of customers maximizing production and that will give
benefits to organisation. Using these, business strategy for marketing is also increasing its
objectives. Clients demand are observed by firms. So, they make products according to
their requests in order to regions and trends of market. So, company is analysing areas
according to the latest trends.
Threats
 Firms offers: Michael kors have various competitors in marketplace. Such as, Ralph
Lauren, coach, Kate spade, etc. So, various companies offering schemes and offers on
less price for promoting their products. From these, several organisations compete in
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market by supplying various styles of goods. So, people like to purchase less price with
different patterns in goods. Such as, handbags, watches, accessories, etc. Offering
schemes by several enterprises decreasing buying power of clients. Other firm’s different
cuts and styles also attracting customers with some schemes. So, these impacting on
profit of organisation.
 Similar products in market: In marketplace same accessories, watches, handbags, etc.
are available with different patterns and styles. So many enterprises competing with firm
for making their place in market. The products with less cost are mostly bought by
various clients if they are similar and compatible with others. The same goods are not
working at different places because of their region and different locations. So, they are
offering many products but with different structure and shape. The accessories are also
designed by the other firm’s designers so they also providing unique shapes and designs
to the customers. Other firms providing similar products with less price as compared to
Michael kors for competing the firm.
 Competitor cost: The same products in market with less price is provided by other firms
because they are making their place in marketplace. Other organisations like Ralph
Lauren, Kate spade, coach, etc. are also supplying their accessories, watches, handbags,
etc. with different patterns and styles for competing market.
 Maximizing level of competitors: In market, level is maximizing of competitors because
they are providing similar products with minimum value with scheme. So, they are
competing with their objects at the marketplace. The various organisations also offering
some schemes on that accessories, watches, handbags, etc. So this thing gives them more
profit. These will also impact on the Michael korn business and also on its benefits.
CONCLUSION
This report is concluded that the SWOT analysis for Michel kors is emphasised on norms
that various competitors are competing in market with similar products and less price for
making their place and profits for their businesses. Furthermore, they also offering schemes
so this is increasing the level of competitors with similar goods. Firm has strong branding
image so customers also like to purchase their accessories, handbags, watches, etc. Some
weaknesses like recession, economic downturns, lack of fabrications, etc. Are impacting on
company. Like interest on products will minimize the benefits of firm.
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