Christian Dior is a French luxury fashion multinational company; it has established a network of approximately 210 luxury fashion stores in various countries worldwide. The company started its luxury fashion business in 1946. Today, we’ll discuss Porter’s five forces analysis of Christian Dior; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.
Substitutes and Competitors of Christian Dior
- Ralph Lauren
- Armani
- Burberry
- Givenchy
- LVMH
- Prada
- Hermes
- Gucci
- Chanel
- Hugo Boss
- Versace
- Valentino
Porter’s five forces analysis of Christian Dior would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s Christian Dior Porter’s five forces analysis of luxury fashion business as follows;
Porter’s Five Forces Analysis of Christian Dior
Let’s discuss Porter’s five forces analysis of Christian Dior as competitive forces in strategic management and they’re as follows;
Bargaining Power of Suppliers in Christian Dior
The bargaining of suppliers is low in the luxury fashion business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in Christian Dior Porter’s 5 forces analysis of luxury fashion are as follows;
I-Multiple Suppliers
The cost of raw materials is very low and its suppliers are easily available in the market; it decreases their bargaining power. Christian Dior prefers to collaborate with a limited number of suppliers that comply with the luxury brand’s regulations and requirements.
II-Quality Material
Some suppliers have access to top-quality and unique materials and supplies; high-quality leather, jewelry, pearls, and diamonds. Since they have access to limited and top-quality material it increases their bargaining power.
Bargaining Power of Buyers in Christian Dior
The bargaining of Buyers is low in the luxury fashion business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in the luxury fashion five forces analysis of Christian Dior are as follows;
I-Exclusiveness
Christian Dior offers exclusive and limited edition luxury fashion apparel, cosmetics, jewelry, footwear, and other fashion accessories. It is highly difficult for customers to find the same type of luxury fashion designs, styles, and value due to the limited edition and exclusive nature. However, it decreases the bargaining power of customers.
II-High Price & Quality
The brand switching cost is very high for customers. They won’t receive the same quality material for unique designs and styles from the other competitive. If they do find it, then it won’t have the same brand worth and value as Christian Dior.
Threat of New Entrants in Christian Dior
The threat of new entrants is low in the luxury fashion business as competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in the luxury fashion five forces analysis of Christian Dior are as follows;
I-Luxury Brand Reputation
Christian Dior has established a luxury brand status in the fashion industry due to its unique designs and styles. The fashion brand puts a great emphasis on differentiating its cosmetics, apparel, footwear, and fashion accessories in terms of design, style, and quality. However, it is difficult for the new brands to establish their position as high-end luxury fashion brands.
II-Strong Market Influence
Christian Dior has successfully maintained a strong market influence and reputation in the luxury fashion industry. It is due to collaborating with the world’s leading fashion designers, conducting fashion shows, and launching marketing campaigns to retain the trust and confidence of customers.
Threat of Substitutes to Christian Dior
The threat of substitute products and brands is low in the luxury fashion business as competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the luxury fashion five forces analysis of Christian Dior are as follows;
I-High Differentiation in Design & Style
Christian Dior has successfully differentiated its brand in terms of unique designs and styles for customers. The luxury fashion brand targets rich and elite-class status-conscious customers; the company associates itself with exotic vacationing, mega luxury houses, cars, and extravagant lifestyles. It is highly difficult for customers to find the top quality exclusive fashion products from customers.
Competitive Rivalry in Christian Dior
The competitive rivalry among luxury fashion brands is very high as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in the Christian Dior five forces analysis of luxury fashion are as follows;
I-Tough Competition
Christian Dior is facing tough competition from competitive brands like Chanel, Hermes, LVMH, Prada, and Gucci. These all luxury fashion brands have successfully differentiated themselves from one another in terms of designs and styles; and have a loyal database of customers. Their market presence is negatively impacting the growth rate, sales, and profitability of the luxury fashion brand.
II-Value Pricing
Christian Dior focuses on producing limited edition and exclusive fashion products and designs for a limited number of audience. The exclusive nature of the limited products would increase their value and pricing. Increasing demand would increase their value and pricing, and that’s how the luxury fashion brand differentiates itself from its competitors.
Conclusion: Christian Dior Porter’s Five Forces Analysis |5 Forces Analysis of Christian Dior
After an in-depth study of Porter’s five forces analysis of Christian Dior; we have realized that Dior is the world’s leading French luxury fashion brand. If you are learning about the Christian Dior 5 forces analysis of luxury fashion; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.
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