Gucci Case Analysis

Essay by rinniui December 2008

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Company Profile

Gucci is an Italian fashion and leather goods label. It was founded by Guccio Gucci (1881 - 1953) in Florence in 1921. Gucci is considered one of the most famous, prestigious, and easily recognizable fashion brands in the world.French HYPERLINK "" \l "cite_note-1" \o "" �� Gucci belongs to the conglomerate company Pinault-Printemps-Redoute (PPR). Gucci is the second biggest-selling fashion brand after Louis Vuitton-Moet Henessy (LVMH). Most importantly Gucci is the biggest-selling Italian brand in the world. Gucci operates about 425 stores worldwide and it wholesales its products through franchisees and upscale department stores.

Problem Overview

Gucci history

Gucci pas dipegang Maurizio Gucci: byk masalah krn kemampuan manajerial minim. ex: Distribusi tdk lancer, Gucci pernah di plot jadi barang murahan, cash flow negative, cost terlalu tinggi.

Maurizio diganti de sole: Gucci turnaround dari jelek ke bagus

melakukan: reorganisasi dan remarking the brand, masalah di atas tercover.

Tahun 1999, Gucci ingin jadi multibrand group krn pengin expand business to reach profitable growth. akuisisi terbesar dan pertamanya adalah YSL. ternyata YSL justru gak bikin desain sendiri pas diakuisisi Gucci dan ternyata setelah itu YSL contribute loss.

Gucci was formerly a family owned business in Italy.

Inside that company, there was a lot of family problem that distracted its management. Maurizio Gucci was one of Gucci successor that runs the company. Under Maurizio control, Gucci's management deteriorated. Because Maurizio lack of management skill, he hired Domenico de Sole as consultant. Then, after Maurizio death, de Sole replaced his position.

Under de Sole management, Gucci performance was better. De Sole immediately started work on reclaiming Gucci's image as a luxury brand, which had been cheapened in the 80s. In 1999, LVMH tried to acquire Gucci, but Gucci did several efforts to avoid this acquisition. Thus, LVMH...