Posted at 10.27.2018
Donna Karan started out her fashion career as an helper designer in the well-known brand, Anne Klein. She kept Anne Klein in 1984, after portion as the top of the design department, and commenced her own label "Donna Karan" in 1985. The label primarily included only a clothing lines for females. In 1988, Karan extended her brand to "Donna Karan New York" (DKNY) which offered a far more affordable clothing line for young women. DKNY Jeans was then created in 1990, which centered on denim wear. The brand was further broadened in 1992 with the release of "DKNY for Men". Finally, in 2008, her perfume line was launched.
Donna Karan New York (DKNY) falls under the group of garments and accessories in the luxury lifestyle and retail industry. It says to offer useful, comfortable, and affordable clothing for men and women. Its target audience is middle-aged men and women, mostly from the top class.
The SWOTT evaluation examines the organization's external environment and also explores the inner environment. This involves listing and inspecting the main strengths of business, its weakness and the likely dangers and opportunities it will be facing in the foreseeable future. (Marcous‰e, 2003)
It has a widened globally in countries like China, Canada, and Dubai;
It is known for its excellent branding and powerful advertising;
Creation of further brands i. e. 'Donna Karan New York', 'DKNY', 'DKNY Kids', 'DKNY Home Collection" and 'DKNY Jeans';
Different product line range from trousers, accessories, shoes, underwear, perfume and baby clothes;
It provides online shopping with international fashion clothing;
Donna Karan earned many honours like lifetime success, menswear, and women-wear custom.
Donna Karan's strength lies in a number of factors. They have a wide variety of products for men and women, plus a line for newborns. In 1992, just after 7 years of its kick off, Donna Karan got 14 divisions including clothes for women and men, a collection for newborns, fragrances, eyewear, body care products, underwear, shoes and other accessories, which grossed $275 billion. With all the creation of further brands like "Donna Karan NY", "DKNY", and "DKNY Jeans", "DKNY Home Collection" and "DKNY Kids", Donna Karan has been able to gain a wide market for her company. The brand has stores found in over 123 metropolitan areas around America, and it is using over 2000 people. Effective branding and marketing strategies has helped it expand internationally and it is now a well-known international brand with stores in countries like China, Canada, and Dubai. There are over 20 stores in China, 2 in Canada, and 4 in Dubai now, Donna Karan International will probably be worth millions.
The availability of an web store has further increased the market share of the company. Furthermore, the brand acquired an elevated footing with Donna Karan being called an nnovative and world-class designer, whose clothes are worn by many famous personalities. She's also won numerous accolades during her job. Karan gained the Coty American Fashion Critics' Award in 1977 as soon as again in 1982; The Council of Fashion Designers of America (CFDA) called her Menswear Artist of the entire year 1992 and Women's wear Designer of the Year 1990 and 1996. She was also offered the Lifetime Achievements Award by the CFDA in 2004.
The breakthrough in the international market is much less wide-spread as other brands;
Controversy over the use of fur;
Fake imitations influencing brand sales.
Compared to other brands such as Chanel, Next, etc. , DKNY has quite little market show internationally. It still needs more enlargement and advertising ways of compete with other, more popular brands. The sales of the brand were also adversely afflicted by the controversy encircling the brand over the utilization of fur. Furthermore, with luxury brands like DKNY, there always tend to be fraudulent imitations which sell at much lower prices. These imitations are low in quality but replicate off of the designs quite well because which the sales of the initial products decrease. (Hemphill et al. 2009)
There is an opportunity of broadening in growing economies such as Asia;
Employment of technology in its workings that could give the brand an electronic presence;
Identifying the rising markets and developing strategies to permeate them.
With globalization, fashion industries have significantly harvested in economies of Asia, Africa etc. American fashion has become quite popular in these areas. Therefore, there can be an opportunity to develop in those markets. Moreover, the role of technology in these areas is increasing and utilizing that in its workings would provide a digital occurrence to the brand. Furthermore, the brand can identify emerging market segments within USA and permeate those.
Many similar brands have surfaced in recent years, some with an increase of affordable but similar products;
The recession will hit luxury brands adversely as people cut down on pointless spending;
There's no chance of halting new brands from replicating the merchandise.
Imitations are a huge hazard to the sales of the brand.
Luxury retail industry has extended a lot in the past couple of years and with this growth, many new brands have surfaced offering high street products manufactured in third world low labor cost areas at dumping prices. With these brands, it is also not possible to stop them from replicating from the designs. Such competition requires the business to be constantly on the feet, coming up with new suggestions to attract customers. Moreover, the global recession has reduced the sales of luxury brands as people's spending ability as drastically lowered. Furthermore, as explained before, the imitation products made with the brand name also present themselves to be always a threat to the marketplace share of the brand.
Increase in the utilization of improved technology;
A change in industry behaviour;
Use of celebrity endorsement to encourage lasting fashion development;
Growing need for artisans and craft preservation.
Donna Karan International has changed its existing business system with the style venture solution from RLM Clothes Software Systems to streamline and increase visibility into its global functions. Furthermore, across the fashion industry were realizing a big change, with major players now beginning to treat sustainability as a tactical aspect. DKNY is also keeping their new products in line with this trend. For this, celebrity endorsement is being used to charm to the masses and encourage lasting development. In addition, luxury brands are starting to value the amazing quality of handcrafted, artisanal materials on fashion products. This craze has also been getting up at DKNY.
As an entrepreneur, you might have to consider the professionals and negatives of purchasing a brand, and with a brandname like DKNY, even though strengths are more significant than the weaknesses, the trader would also need to keep in mind the risks to the company and how strong these are in affecting the marketplace share of the brand.
Coming to the stakeholders, they are of two types: interior and exterior. Internal stakeholders are ones who work immediately with the business enterprise whereas external stakeholders are ones who do not work with the business but are still influenced by the decisions of the business enterprise. Coming to DKNY, the inner stakeholders are the professionals, shareholders, and the employees. The external shareholders would include the customers, the suppliers, and the rivals. (Hall et al. 1993)
The interior stakeholders need the business enterprise to be successful and bring in maximum income. These stakeholders are damaged by pay and job stability. The bigger the revenue, the greater will be the add-ons received by the professionals, the higher would be the income for the owners which may bring about higher pay for the employees, and the greater will be the dividends paid to the shareholders. For instance, in DKNY, as the owner may be thinking about experimenting in new designs and striving their luck in new marketplaces, the shareholders and professionals may not reveal the same interest as they might not want to take risks with the sales or lose market share. Where research and development may be of interest to the owner, the professionals and the shareholders would be more interested in retaining a high market talk about and maximum sales.
On the other side, the needs of the external stakeholders are quite different from those of the inner stakeholders. The customers of DKNY would gain with quality products but lower products. The suppliers would benefit from the stability of the business enterprise which will, subsequently, ensure their steadiness. The competitors, such as Giorgio Armani, are also influenced by the decisions created by DKNY. If DKNY was to lessen their prices of a certain product, this might influence the sales of Giorgio Armani adversely as both brands are slightly substitutes to one another, if we do not account for brand devotion. (Okonkwo, 2007)
Diversifying helps in maintaining both the market talk about of the brand while tinkering with new products. While using development of the brand in so many areas, it has become easier for the brand to test out services, as it offers various products to fall back again on if one fails. This also means that the income and careers are secure, and the employees, professionals, suppliers and shareholders are held satisfied.
In order to meet the needs of customers, prices are maintained lower than those of brands at the same footing, promotions and sales are a frequent affair, no compromise is made on the quality of the products which keeps the customers devoted to the brand. Another area where DKNY handles to keep its customers satisfied is the uniqueness of the product. (Tungate, 2008). The clients of the brand participate in a high course and they do not want products that are mediocre. This is why invention becomes a necessary process for a brandname like DKNY. (Hemphill et al. 2009)
When it involves its rivals, DKNY must consider the actions of its competitors when coming up with any decision such as increasing prices, launching a new product, etc. as all brands work close collectively in such business. (Chamberlin, 1956)