I
choose two bags, one is from Chanel,
and the other is from H&M. Although they
are in the same category, they have
different competitive advantages.
CHANEL BAG




Promotion
Quality
Benefits of use
Design features
H&M BAG


Placement
price

Chanel is a very famous brand and pretty popular. It has
designed lots of wonderful products and some of them have
been kept as the classical products. The bag that I choose is
one of them. When the product is designed, the Chanel will
hold a collection to promote the products. It also puts the
advertisement on the internet, TV, billboard and the
magazines that about the fashion. Another important way to
promote this classical bag is words of mouth. The bag can
be the classical, because the reputation and the good reply
from the consumers. The chanel is a very effective brand. On
this bag, it has the brand of Chanel. When people see it, they
probably think it is perfect and want to buy one. Some of the
super stars also have that bag. It is also a good promotion. So
it is a strong competitive advantage.
 Although
H&M is well-known in the
world, the influnce is not effective as
Chanel. For this bag, it probably only put
on the shelf of the H&M store, maybe put
the advertisement on the magazines. The
brand of H&M is not obvious on the bag,
even if people see others own it, but they
don’t know where to buy it.
 The
bag from Chanel is pretty good. It is
made by people. The worker pay
attention to all the details. The material is
chosen carefull by worker. The quality is
ensured. It has been a luxury for such
long time, it’s quality is also proved.
 The
reply from the customers for the
H&M bag is not very good. Lots of them
reflect the bag is not durable, it is very
easy to be broken. So we see the quality
of it is not very good. H&M doesn’t gain
the competitive advantage about the
quality.
 Chanel
is a famous brand for the luxury.
It can show the identity and the level from
the owner. People wear it to attend the
pary, thay can get the envy from others,
and make they feel good. This bag is a
classical one, it can also show the owners’
insight. This is also a very good
competitive advantage.
 We
know that the bag from H&M is not
very durable. It can only use as the
decoration. It can show the some fashion.
In my opinion, it’s benefit of use it less
than Chanel’s.
 This
bag is the classical one. One of the
reason for it can be kept for such a long
time, because people like this style very
much. It is designed by famous designer.
The classial probably won’t out off the
fashion. This is one of the competitive
advantage.
 The
bag from the H&M is show the
fashion, but the fashion is always
changing. Maybe the feature is at the top
of the vogue, but it will be replaced soon.
There is no classical bag in H&M. So it
will be washed out when new style
arrives.
 Chanel
is a luxury brand, it is only placed
in high level department store. In big city
it is easy to find the shoppe of it, but the
number of it is not very much. In middle
or small city, it is very hard to buy the
Chanel bag. People who live in those
kind of city, they need to go to big city to
buy. It is not convenient. This is not a
advantage.
 The
shoppe of H&M is easy to find in lots
of city. Even if in a same city, there are
plenty of shoppes. It is easy for people to
buy them. Or people are doing the
window shopping, they see the bags from
the shoppe, maybe they buy it. Having a
lot of stores is easy to do the push
strategy . So it is a very good competitive
advantage for the H&M bag.
 The
target market of the chanel is the
people who have high imcome. It is a
smaller market. The normal people can’t
afford it or don’t want to buy it because
they think it is not very useful.
 The
price of H&M is much cheaper than
Chanel. Normal people can afford it. For
this bag, the people who have a low
income can also afford it. The target
market is big.
The bag from the Chanel and H&M, both of them
have competitive advantages, but i think the bag
from Chanel is better, because it have the good
promotion. The brand of it is a powerful
advertisement, it also have other strategies to
promote. It’s quality is so good that gains lots of
reputation from the costumers. It has lots of benefit of
uses. People think it is worth to buy it although the
price is high. The last competive advantage is design
feature. It is design by famous designer, and it is as
the classical one, it won’t be out of the fashion.
 So the Chanel bag has the stronger competitive
advantages.
