Strategic Management Report: Recommendations for Dior's Growth

This report provides a strategic analysis and recommendations for Dior, a prominent luxury goods company. It focuses on the need for product innovation to meet changing customer preferences and maintain a competitive edge. The report suggests that Dior should focus on innovation in product design, sales, and marketing. It also recommends forming strategic alliances with local market players and consultancy groups to expand market share and analyze industry trends. The report emphasizes the importance of e-commerce and innovative marketing strategies to meet the demands of the online market. Additionally, it highlights the benefits of mergers and alliances for business expansion and market positioning within the competitive luxury brand segment. The report concludes by emphasizing the importance of service and product quality and the establishment of alliances for achieving Dior's goals and objectives.

2020
Recommendations for Dior
hemant agarwal

RECOMMENDATIONS 1
Table of Contents
Introduction................................................................................................................................2
Innovation Requirements within the organisation.....................................................................2
Recommendations for mergers and alliances.............................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

RECOMMENDATIONS 2
Introduction
Dior is a French multinational organisation dealing in luxury goods segment. The
industry has undergone several transformations and has seen a strong growth within the
industry. With the changing customer preference within the industry the organisation is
required to implement changes within the organisation so that the effectiveness of the
organisation can be ensured, and a competitive position can be maintained within the industry
(Carteret, 2018). The report focuses on analysing the areas where Dior can innovate so that
the organisation can effectively achieve its business objectives.
Innovation Requirements within the organisation
Dior is required to focus on innovating to products so that the threat of the demand
pattern can be avoided. As the organisational deals in luxury fashion wear; therefore, it is
required that the organisation effectively focus on providing its customers with innovative
fashionable products so that it can maintain its competitive factor within the industry. The
customers within the industry is focused on premium products and require that the brands
provide them with the premium quality products. To meet the demand and requirements of
the customers within the industry, Dior is required to focus on innovating its products so that
the product quality can be improved and maintained (McKinsey, 2020).
Innovation can be done in the operations of the Dior as the organisation is using
quality materials to produce the goods and has an effective logistics partnership with other
organisations. But to maintain its brand image within the organisation and to ensure that the
customers are being provided with the quality products, Dior is required to innovate its
operational activities such as sales and marketing, so that the organisation can establish an
effective communication network with the customers and can identify their requirements and
can work accordingly.

RECOMMENDATIONS 3
The rise in the e-commerce and online shopping has affected the way the business
transactions were done. The e-commerce market is expected to grow by 2025, therefore Dior
should focus on its innovative marketing strategies so that it can meet the needs and
requirements of the customers within the online segment. Dior has established its online
presence but still it requires to focus on innovative tools and techniques through which it will
be able to attract its target customer towards its online platform and will be able to provide
them with the quality products and services (Haggerty, 2018).
Recommendations for mergers and alliances
Dior operates its business in 35 nations therefore, to maintain its efficiency and to
provide its customers with effective services within the industry, Dior can focus upon
establishing alliances with the local players having knowledge about the local market and the
target customers, so that Dior can effectively develop strategies within the nation as per the
market requirements and as per the government rules and regulations. Developing such
alliances will help the Dior in effectively establishing its business within the nations, as Dior
will not have to expend heavily on the market research and analysis (Forbes, 2010).
To analyse the industry trends and to identify the customer changing requirements
within the industry Dior can partner with the consultancy groups and the professional analyst
who are involved in conducting such research-based analysis. Such alliances help the
organisation in developing better results at minimum cost incurred, as hiring a full-time
employee for the research work will provide with the same result but at a higher cost
compared to an organisation conducting such research work for its clients (Sekaran &
Bougie, 2016).
Dior can also focus on partnering with the fashion retail chains so that the
organisation can effectively reach to its customers within the industry and can focus on

RECOMMENDATIONS 4
expanding its market share and to retain its competitive position within the industry. Dior is
among the leaders within the luxury brand segment therefore it is required to effectively
focus on developing alliances and mergers so that the organisation can effectively expand its
business operations and can focus on the goal of the development of the market share and a
satisfied and loyal customer base within the industry (Backaler, 2018).
Conclusion
Dior operates in a competitive industry; hence it is required that the organisation
focuses on the service as well as product quality so that the organisation can compete within
the industry. Dior can effectively focus on innovation within its decision making and the
sales and marketing of the organisation. Also, to improve the organisational effectiveness
Dior can focus on establishing alliances with local market player who has a better
understanding and can help the organisation in achieving its goals and objectives.

RECOMMENDATIONS 5
References
Backaler, J. (2018, September 25). To Grow Your Business Abroad, Partner with Local
Influencers. Retrieved from Harvard Business Review: https://hbr.org/2018/09/to-
grow-your-business-abroad-partner-with-local-influencers
Carteret, I. d. (2018, April 17). Brand Focus: The History Of Dior. Retrieved from Bagista:
https://bagista.co.uk/blogs/news/brand-focus-the-history-of-dior
Forbes. (2010, November 04). Master of the Brand: Bernard Arnault. Retrieved from Forbes:
https://www.forbes.com/forbes/2010/1122/fashion-bernard-arnault-lvmh-luxury-dior-
master-of-brand.html#58ab6e7f62ea
Haggerty, M. (2018, March 28). E-Commerce Has Changed the Way We Shop. Here Are 3
Reasons Why Your Online Business Isn't Growing. Retrieved from Inc.com:
https://www.inc.com/maria-haggerty/ecommerce-has-changed-way-we-shop-heres-
why-your-online-business-needs-to-adapt-now.html
McKinsey. (2020). The State of Fashion 2020. McKinsey & Company.
Sekaran, U., & Bougie, R. (2016). Research Methods For Business: A Skill Building
Approach. UK: John Wiley & Sons.