Detailed SWOT Analysis: Michael Kors' Business Environment

This report presents a SWOT analysis of Michael Kors, a prominent fashion industry player headquartered in America. Founded in 1981, the company offers a range of products including footwear, watches, apparel, accessories, and handbags. The SWOT analysis identifies the company's strengths, such as its strong brand recognition, successful marketing strategies, and celebrity endorsements, which contribute to its popularity and sales. Weaknesses include economic downturns, recession impacts, and potential lack of fabrications affecting product development. Opportunities lie in leveraging its famous brand image and maintaining positive brand salience among customers. Threats consist of intense competition from firms offering similar products at lower prices and the impact of competitor costs on customer purchasing decisions. The report concludes that while Michael Kors benefits from a strong brand image, it faces challenges from competitors and economic factors, emphasizing the need for strategic adaptation to maintain its market position and profitability. Desklib provides access to this and many other solved assignments for students.

ENGLISH ACADEMIC SKILLS

INTRODUCTION
• For all oragnisations across the world, their aims is to make profits by
understanding the requirements of customers and fulfill them by providing
services and products to the users.
• So the firms is analyzing their environment and structure by using various
methods like pestle, swot, porters, marketing mix etc.
• This present report is on Michael kors, which falls under fashion industry
and its headquartered in America.
• It is providing products to the customers such as footwear, watches,
apparel, accessories, and handbags.

About the company
• Firm providing their products across the world. Its headquarters areas
located in United states.
• It is founded in 1981 by Micheal kors. John Idol is the chairman and
Michael kors is the director of the firm.
• According to 2016, yearly profit of firm is around 839.1 million USD and
the operational income is 1.16 billion.
• Furthermore, the enterprise total assets is around 2.57 billion.
• Equity is around 2 billion. Firm have 12689 staff members for providing the
services and products to the end users.

SWOT ANALYSIS OF MICHAEL KORS
• The SWOT analysis is analysing the strengths,
weaknesses, opportunities and threats of
company.
• It is the way of identifying the points which are
affecting businesses.
• It is used to know the basic structure related their
products and services entity.
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.
• The Michael kors provides ladies’ clothes from
last thirteen years.

Continued..
• The enterprise maintaining and developing brand on their products by
using some techniques and also its life cycle. Celebrities mostly wearing
Michael kors clothes on red carpet of Hollywood.
• The Michael kors products are used in various events and functions. The
services and products of firms is also provided in domestic markets.
• Products are provided by the firms are legal, worthy, and branded.
• Organisation is famous for its brand. It is important for products because it
helps to the quality and that can be measure branding.
• Publicity : It gained by marketing of new products of firm. The marketing
is done using various sources by organisation. Like television, mass
mailing, advertisements, pamphlet and also offering discounts and
schemes.

• The firm have around 550 stores launched in
2016. Events also help for promoting the sells
of watches, accessories, clothes etc.
• Geoffrey beene lifetime achievement awards,
the youngest recipient is the kors.
• Firm containing lifetime achievements and
fragrances from the FIFI award foundations.
• These achievements also improving the image
and sells of firms products.
Continued..

Weaknesses
Economic downturns and recession : In business profit economy is
playing important role for firms.
• The enterprises always trying to make benefits but the downturns of
economy is making fewer profits.
• So, it is also possible that community is claiming on products as
prone. In the fashion industry the changes are always made
according time to time.

Continued..
Lack of fabrications : The fabrication is the way of making products
from raw material to end.
• Before finishing, the elements are assembling with other
components. So creating these, the lack of raw materials impacting
and weakness of the Michael kors.
• These things in oragnisation is from initial to end process the objects
are essential for making the products for enterprise.
• Demanding of clients from various countries and regions for making
different products according to trend is difficult.
• So the businesses firstly analyse the area and region then the firm is
providing their products in order to the latest trend of fashion.

Opportunities
Famous brand : Products quality and status of Michael kors is also
making popularity for the products.
• The watches, accessories, etc. are majorly used by feminists. In
developed countries as well as United states, this is very familiar
brand for peoples.
• Well known image of firm is also helping for selling of its products
in market.
• The celebrities of Hollywood are wearing organisations watches,
accessories and also clothes so it also making more famous
enterprises image and its products.
• Fames walking on red carpet using firms products. Peoples always
like to purchase popular, quality and branded products. So the firm is
giving according to requirement of customers.

Continued..
Positive statement and brand saliency :
• The customers are widely used the Michael's kors products. Such as,
watches, accessories, handbags, etc.
• This is making benefits for the company and also displaying their
positivity on enterprises brands and its products.
• Wide usage of the Michael's products making a positive statement
for analysts of firm.
• Using by these products in several countries makes more positive
image of oragnisation.
• Companies brand and its quality making more importance. The
condition of client for purchasing the products is observed by the
firms by the level of brands.

Threats
Firms offers :The Michael kors have various competitors in
marketplace. Such as, Ralph Lauren, coach, Kate spade, etc.
• So the various companies offering the schemes and offers on less price for
promoting their products.
• From these, several oragnisations compete in market by supplying various
styles of that products.
• Peoples like to purchase less price with different patterns handbags,
watches, accessories, etc.
• The offering schemes by the several enterprises decreasing the buying
power of clients.
• The other firms cut and styles attracting the customers with less cost. So
these impacting on the profit of oragnisation.

Threats
Firms offers : The Michael kors have various competitors in
marketplace. Such as, Ralph Lauren, coach, Kate spade, etc.
• So the various companies offering the schemes and offers on less
price for promoting their products.
• From these, several oragnisations compete in market by supplying
various styles of that products.
• The peoples like to purchase less price with different patterns
handbags, watches, accessories, etc.
• Offering schemes by the several enterprises decreasing the buying
power of clients.
• The other firms cut and styles attracting the customers with less cost.
So these impacting on the profit of oragnisation.

Continued..
Competitor cost :
• The same products in market with
less price is provided by the other
firms because they are making their
place in marketplace.
• The other oragnisations like Ralph
Lauren, Kate spade, coach, etc. are
also supplying their accessories,
watches, handbags, etc. with different
patterns and styles for competing the
market.

CONCLUSION
• These report is concluded that the SWOT analysis for Michel kors is
emphasised on norms that the various competitors are competing in
market with similar products and less price for making their place and
profits for their business.
• Furthermore, they also offering schemes so these is increase the level
of competitors with similar products.
• The 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 the company. Like interest on
products will minimize the benefits of firm.

References
Journals and Books
• Nguyen, H.T.T., 2016. Macro and micro skills in second language academic
writing: A study of Vietnamese learners of English.
• Saha, D., 2015. Understanding the gaps and developing an efficient option
plan for Alto Moda Men's Range for SS16. NIFT.
• Bhatia, V., 2015. Core Revamp in Formal Shirts Business. NIFT.
• Tran, D., 2016. Beauty bloggers' influence on Vietnamese young
consumers.
Online
• The Bag Wars: Coach, Michael Kors, and Kate Spade, 2014. [Online].
Available through :
<https://www.forbes.com/sites/walterloeb/2014/06/27/the-bag-wars-coach-
michael-kors-and-kate-spade/#6de3aa465860>.[Accessed on 9th July 2017].

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