Strategic Analysis_ Gucci Group (Research Needed for Exam) Essay

Strategic Analysis_ Gucci Group (Research Needed for Exam) - Essay Example For example when they use raw materials for a particular collection of clothing, care should be taken to minimize the usage of materials such as animal fur that carry negative impact on nature. As the company uses leather and other animal skins as alligator, environmental damage which may be incurred by high usage of such raw material must be born in mind. With emission control laws setting out new and stringent standards in Europe and across the world, manufacturing facilities of Gucci will have to ensure compliance to new regulations. With the process of globalization, internet era and new industries such as ITC creating new avenues of wealth and wealthy individuals, the primary market segment of Gucci have expanded. A new segment of less affluent â€Å" Wannabees† aiming to emulate the Gucci’s traditional customer profile is offering new business opportunities. With the ageing population increasing in Europe, the market for fashionable luxury goods as Gucci will expand as it is the more mature people who can afford such exclusive luxuries. However in the long run this social trend can be detrimental as there would be a larger population that are seniors and supported by a fewer number of working population, creating low spending power in the economy. With the developments in IT, managing logistics, supply chain, retail outlet inventories and product development can all be upgraded to be on a networked system with real-time information. Such information integration is essential to support multi brand multi product business operations which are highly diversified and globally located. Internet is widely used and can be utilizes as a advertising tool to a greater extent, making available design and product information, as well as collection videos so that the reach of the communications are wider and cost effective. With the new developments in technology, new fabrics are being developed and Gucci as a forerunner in the fashion industry will be affected