BVLGARI vs CHOPARD: Bvlgari - That Way to Victory

To understand the external exposures and the internal features a company faces it can be very useful to construct a SWOT analysis. The SWOT analysis is a tool to evaluate the strengths, weaknesses, opportunities and threats of a company. This is important to understand when planning how to reach the set goals, to know which features needs reassessment and which are working.

Bvlgari is an immensely successful company. Their strengths are as follows

Bvlgari has a very strong brand name, which is hugely popular and well known worldwide.

They have a high brand presence in the media and social media’s.

Good marketing and advertising worldwide which ads brand value.

The company’s product portfolio is largely diversified. This allows a higher retention rate among the consumers.

The strongest internal weaknesses Bvlgari faces are

Bvlgari has built the brand name on exclusivity.

The products are however quite easily copied, which can make the brand lose its exclusivity.

Bvlgari is a world known brand; however, they have had limited penetration of the emerging markets.They have recently started to focus on these markeds, but the market coverage is not optimal.

Their store count is limited world wide

The biggest opportunities imposed by the external market is

The emerging economies, e.g. both generations Asian tigers, are great opportunities for Bvlgari.

Diversify the product lines further to complete the market penetration in their current markets.

Increase promotions and advertisements to raise brand awareness.

Further develop web based stores to make a bigger appearance in the growing online market

The most serious external threats to Bvlgari are

Bvlgari was negatively impacted by the economic downturn of 2008-2009.

The consumer’s loss of purchasing powers, a weakening dollar and inflation are all threats to sales.

The Italian challenging economy also has a negative effect on this.

Constant increase in counterfeit products.

Fluctuations in raw materials and the precious metal prices; volatile gold and silver prices.

To summarize; Bvlgai has a great opportunity to strengthen their market coverage by focusing on emerging markets. Because of their limited store count it can be profitable to further develop their online appearance. Even though their product portfolio is largely diversified it is possible to strengthen their portfolio by further diversify. These aspects can also lead to a higher market share. Bvlgari’s brand value and market presence can also be strengthened by increased advertisement and promotions.

Bvlgai’s toughest threats have to do with the economical cycles during the latest years. These threats are difficult for a single company to do something with, beside wait until the cycles turn and the prices stabilize.