Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16/e
by Fred R. David, Forest R. David
Future
Michael Kors’ strategy to market a jet-set lifestyle has proven successful among the fashion critics and customers, but its brand may lose prestige if the company continues expanding its target audience with lower-priced offerings. Overexposure of the brand could weaken its reputation in the glamorous fashion industry, which could ultimately force Michael Kors to reposition its brand. There could be a threshold where high-end fashion aficionados will turn away from the brand. By depending heavily on a select number of wholesale customers, the company faces an issue regarding the potential loss of one of these customers. For example, if Macy’s decides to cut ties with Michael Kors, the company would immediately lose 25 percent of its wholesale ...
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