Oscar de la Renta
Team One
JC Sullivan,Adam Dumaresque, Mitch
Getson, Bailey Penney, Jason Khoury,
Jennifer Kerr
Agenda
 Firm Overview

External Analysis

Internal Analysis

Strategic Alternatives

Decision Matrix

Implementation Plan & Contingency Plan
Firm Overview
Oscar De La Renta
 Primarily stand-alone single brand
 Current Strategy:
 High price, differentiation
 Intensity of Rivalry:
 High
 Recommendation:
 Capacity expansion- differentiation
External Analysis
Strategic Group Map
Low Price
Price
High Price
External Analysis
Strategic Group Map

High price, low differentiation

LVMH : high price high product reach
 CK: lower price low product reach

Remain narrow in product reach
Internal Analysis
Value Chain
 Channel selection:
 Strategic channel selection helps us market our product
 Premium prices can be charged to certain channels
 Pricing:
 High prices helps us create value without cost limitations
 Advertising:
 Our niche market is an advertisement in itself
 Exclusive fashion shows, high-end magazine covers and
boutiques
External Analysis
Porters 5 Forces
Bargaining power of buyers high
Threat of new entrants low
Threat of substitutes moderate
Bargaining power of suppliers moderate
Rivalry among existing competitors high
Financial Analysis
 From 1999-2003 was ODLR’s most successful period
 Gross Profit Increased 49.8%
 Ready-to-wear revenues grew 19% while licensing revenues
dropped 16%
 Operating expenses dropped 11.1%
Strategic Alternatives
 Strategic Alternatives
 Capacity expansion – Cost Leadership/Differentiation
 New business entry – Differentiation
 Decision Criteria
 Future growth
 Alignment with current strategy/core competencies
 Customer attraction/retention
 Customer satisfaction
 Product reach
Strategic Decision Matrix
 Best Alternative:

Boutique Presence & Selective Licensing – CE x D
 Second Best:

Expanded Licensing & Market Reach – NBE x D
 Third Best:
 Low Price Market Entry – CE x D
Implementation Plan
 Boutique Presence
 Market research on boutique locations
 Financing
 New Product Breathe
 Brand consistency
Contingency Plan
 Oscar dies: High risk & High impact
 Change in fashion trends: Moderate risk & Low
impact
 Poor economy: Moderate risk & Moderate
impact
 Trade embargo (politics): Low risk & Moderate
impact
 Rise of new highly competitive rival: Low risk &
High impact
Questions
Rest In Peace Oscar de la Renta 1932-2014