Swot Analysis

I. Situation Analysis

“The internet provides a powerful platform for conveying information, conducting transactions, delivering innovative services, building customer and supplier relationships, gathering marketing research data, reducing costs and prices, and integrating the entire supply chain from suppliers to end uses.” (Chapter 6, P161) With this in mind, leading-edge business marketers are using the Internet to transform the way they do business. Fashion companies have invested highly in their brands and today Designer Giorgio Armani and other high fashion designers are investing in effective fashion e-commerce in order to market their brand, connect with consumers who lie outside their network of stores, and expand their territory without the investment of establishing new stores.

Online retailing, allows consumers to log into their personal computers at home and access products. (Chapter 11, Page 363) Armani hired a Bologna-based Web retailer, Yoox Group SpA, to design an online shop for his brand. The Yoox Group SpA began as a way to sell designer items from the previous season over the Internet at discount prices. In the past year, the company decided to expand and provide services for labels that wanted to move online. Yoox Group now creates and designs online sites for a cut of sales.

"When a company implements strategies that attempt to shape the external environment within which it operates, it is engaging in environmental management." (Chapter 2, Page 49) Monitoring new technology is essential to keeping up with competitors in today's marketing environment. By retailing online, Armani puts his brand out there with others and can gain competitive advantage by doing so. The competitive environment encompasses the number of competitors a company faces, the size, and the degree of interdependence within the industry. It is also important for marketing managers to take the social environment into consideration. Several major demographic trends, including e-commerce and online retailing, are currently shaping marketing strategies. People of all ages and generations have different beliefs, a broader range of interests, and different economic status. The Internet offers a new source of sales and higher profit margin. It can also reach different types of consumers, those that are high earners who work long hours and don't have time to shop. Brand Web sites are a way for consumers to research Items before making a purchase.

II. Marketing Objectives

Emporio Armani wanted to bring its online boutique to the United States in order to allow customers to purchase products without visiting one of the 10 stores. Armani wanted to create a site as sophisticated and elegant as his stores, and SpA’s design team was able to cater to his requests. It is expected that the online store will become one of the biggest stores, producing the most revenue for the company, without real-estate and design expenses. “E-commerce not only speeds up and automates a company’s internal processes, but just as importantly, it spreads the efficiency gains to the business systems of its suppliers and customers.” (Chapter 5, Page 162) Online shopping continues to grow at a rapid pace and products are in high demand as more and more companies and retailers jump onto the bandwagon. Armani plans to keep up with its’ newly designed website.

III. Marketing Strategy

Emporio Armani wanted to bring its online boutique to the United States in order to allow customers to purchase products without visiting one of the 10 stores. Armani wanted to create a site as sophisticated and elegant as his stores, and SpA’s design team was able to cater to his requests. It is expected that the online store will become