2. How are the resources and activities in Gucci?

Present your answer based on the framework of internal analysis.

a. Before restructurization.
b. After the restructurisation.
Your answer should be summarized with the variables of Strength and Weakness

Answer:

Internal Before Restructurization After Restructurization

Analysis
Strength Has long history as luxury brand
(since 1967)
A lot of product Licenses
Franchising of 180 stores
(69 directly-operated, 38.33%)
Weakness Overly exploited product licensing
(1,000 stores)
Non-discriminating distribution
Disarray/unfocused product
portfolio (22,000 products),
incomplete product portfolio
Internal conflict of ownership
Poor management skill
Expertise in managing luxury brand
Focused & coordinated customer
communication
Direct store ownership
(187 directly operated, 86.18%)
Highly recognizable store appearance
Creative design expert (Tom Ford)
Strong partnership with local
manufacturers
Balanced product portfolio
High advertising cost
Insufficient local expertise in some
markets (such as Moscow, Athens and
Dubai), remaining 30 franchise stores