Ralph Lauren Strategy Paper Essay

faculty 2 Mission, Goals, and the Strategic instruction Process The mission of Ralph Lauren is to provide quality reverseth, bringing variant worlds in concert and inviting people into their dream and vision (McAllister, 2012). They be the true innovators of lifestyle advertisements that promulgate a story and the first to create stores that encourage customer involution in that lifestyle (McAllister, 2012). Ralph Lauren has 3 major(ip) goals Build and extend the flaw by uniquely showcasing the world of Ralph Lauren through advertising and marketing. The Ralph Lauren attach to overly pictures to expand and extend the Ralph Lauren lifestyle through refreshful products, in parvenue categories, and in forward-looking parts of the world. (Johnston, Watkins, & vitamin A Wright, 2005) Keeping its specialty sell is also extremely important. Polo continues to addition the amount of exclusive or limited-distri only whenion product in its Ralph Lauren stores. They also plan on making signifi dissolvet advances in how it operates its sell stores by adding experience and strength to the leadership of the specialty sell group and coupling it with the right merchandise and marketing support. (Johnston, Watkins, & adenosine monophosphate Wright, 2005) Expanding its internationalist presence so that they muckle broaden their reach through change magnitude direct brand ownership and control with revolutionary specialty retail store openings. (Johnston, Watkins, & Wright, 2005) Yes, the firm has longterm goals that baron amaze challenging. For instance, expanding internationally especially in europium has been challenging. Sales in Europe pick out shown little growth, therefore Polo Ralph Lauren is currently finding new slip elan to reduce costs through changes in its infrastructure. (Johnston, Watkins, & Wright, 2005) Polo Ralph Laurens main(prenominal) strategic plan to grow the community is creating new stores because it makes up for nig h one-third of its revenues. Creating new stores is a part of intended strategies because the conjunction cautiously plans where they want their store according to the amount of business the go with plan on acquiring in a particular atomic number 18a. (Johnston, Watkins, & Wright, 2005) Module 3 External AnalysisIn the large environment, Ralph Lauren Corporation has and for detect be force by all the changes that will occur. In the macro environment the company is impacted by the political, economical, sociocultural, technological, ecological and legal factors. political factors are the actions of government that can influence the behavior and decisions of firms. These factors can establish a direct impact on the way businesses operate. In the get together States business firms face more regulations thus other nations (Viking, 2009). According to (Viking, 2009), employee rights in the United States have a large effect on business, and with the set indus get a line requi ring much labor and work employee laws are significant. Employee laws are tokenish wage, over age, bene harmonises and health and safety regulations.This means Ralph Lauren has to pay employees at least(prenominal) minimum wage and for overtime worked. The company has to offer benefits to full time employees and follow OSHA regulations when it comes to safety. in any case the company has to adhere to trade regulations when importing and exporting goods overseas. Economic factors impact the economy. Some ways Ralph Lauren can be impacted economically are through growth rates, interest rates, and levels of craft, price constancy and currency exchange rates. (Viking, 2009) states that for the apparel indus get wind in the United States, much(prenominal) as Ralph Lauren, the future does not look promising. Wage and salary employment in the apparel industry is expected to decline which leads to doomed jobs over the period. The Decline in employment can be attributed to increase i n imports, new automation machinery, and cost-cutting pressure from increase global competition (Viking, 2009). on with this the economy is in a recession, which means high unemployment, higher taxes on e actually one and low incomes (Viking, 2009). With this most families cannot afford the prices that Ralph Lauren has to offer. Sociocultural factors are societys norms, cultures and values.This may impact Ralph Lauren because the company has to learn the demographics of different areas. The demographics show the different characteristics and attributes of people so companies such as ours can understand the buying power of the people. When the company learns this information they can crack whether or not products will appeal to customers and how many potential customers for these products might a rescind. Also with the growing trends of people and different styles Ralph Lauren has to make various pieces to fit all their needs. Technological factors bewitch the application of k imm ediatelyledge to create new processes and products. With new technology the apparel industrys productivity has been disposed a boost. There has been an increase in automated machinery that has improved mathematical product and manufacturing facilities such as Ralph Lauren Corporation (Viking, 2009). Now they have new winged computerized sewing machines in order to make production go faster.Also new computer software has been a big plus for Ralph Lauren because now that can create and design new garments with no problem (Viking, 2009). on with this technology allows them to be able to market their fit out online through their website which ralphlauren.com. This way people can get what they want through technology. Ecological factors allude broad environmental issues such as the natural environment, global thaw and sustainable economic growth. Ralph Lauren can be impacted by these factors because the company manufactures cotton clothing. With cotton it comes from various vendors , but in order for it to grow it has to have a good environment to grow in. If farmers dont get good weather then crops may be lost and there will be no clothes for Ralph Lauren. Lastly, Legal factors capture the outcomes of the political processes and court decisions. Because Ralph Lauren is a highly noted fashion ornamentalist he is hit with lawsuits and legal issues all the time.They had to sue US Polo tie beam for infringement on their brand (Polo Ralph Lauren Corporation, 2010). Another fashionable brand, Levi Strauss sued Ralph Lauren because they had similar sew in their jeans. Also Ralph Lauren along with twenty one other major companies was sued over having sweatshops and knowing of their wrongdoings (Polo Ralph Lauren Corporation, 2010). With the five forces model we can learn somewhat the spirit of completion for our company. To begin Ralph Lauren is faced with the nemesis of new entrants into the industry. With the rise of different trends there will always be a t hreat of new entrants into fashion retail. This task will be difficult and pricey because of the degree of Ralph Lauren. The company has overpowered the fashion industry by selling popular designs and creating the best styles (Johnston, Watkins, & Wright, 2005 p. 12-13). The threat of substitute products plays a big contribution in Ralph Laurens marketing strategy.Some of the companys competitors try to market and sell new and different styles in order to increase demand, while other companies try to copy the designs of Ralph Lauren (Johnston, Watkins, & Wright, 2005 p. 12-13). So the company remains a well-known fashion designer of quality clothes and expands into other markets in order to compete. Ralph Lauren is a brand name that appeals to consumers and is very profitable. Then the bargaining power of buyers also tells the nature of competition for Ralph Lauren. The customers of the company know that when buying the company products they are buying quality. Although thes e brands are quite a expensive, they are sold at a cheaper price at retail outlets. This bargaining power is good for consumers who have a smaller pass power than others.The bargaining power of suppliers is a bit vast for Ralph Lauren (Johnston, Watkins, & Wright, 2005 p. 12-13). Reason being they require a lot of supplies for operating the business, and get lots of bids from sellers of fabric and packaging. Also providers of cotton and other fabrics lead to a result of competition with suppliers and the company chooses the vendors with the best reasonable price (Johnston, Watkins, & Wright, 2005 p. 12-13). Lastly in the five forces model rivalry among existing firms shows the nature of competition in Ralph Lauren. According to (Johnston, Watkins, & Wright, 2005 p. 12-13) the company has several competitors, but has managed to keep a large portion of the market by introducing new designs and going into new markets. Ralph Lauren is growing and gaining more overseas retail stores.And with new technology and online retail sales, the company has gained more sales opportunities and increased ontogeny of online marketing (Johnston, Watkins, & Wright, 2005 p. 12-13). Competing with a company such as Ralph Lauren can be a difficult task. Companies in the fashion industry have noticed that this competition is hard to do. In the apparel industry along with Ralph Lauren there are other strategic groups that exist. These groups are Liz Claiborne, Jones Apparel Group, and Tommy Hilfiger. The Liz Claiborne Company is the leading competitor of Ralph Lauren. They manufacture name brands such as naughty Couture, Lucky Brand Jeans, and Kate Spade.They have expensive brands like Ralph Lauren. Liz Claiborne is so tight fitting in competition to our company that they had revenues of $3.984 which is $1 one thousand million less then Ralph Lauren (Ralph Laurens Rivalry, 2010). Jones Apparel owns brands such as Nine West and well-situated Spirit. Their revenue was $ 3.6 billion which is $3 billion less than Ralph Lauren (Ralph Laurens Rivalry, 2010). Tommy Hilfiger has been Ralph Laurens biggest competition for twenty years. Sales began to decline because the brand wasnt meet as popular as the leading competitor. They had revenue sales of $3.4 billion which is $5 billion less than Ralph Lauren (Ralph Laurens Rivalry, 2010). Most of these products now are in retail stores and in private boutiques. According to (Ralph Laurens Rivalry, 2010), Tommy Hilfiger wants to try and compete with other high end fashion designers by pitiable away from the mainstream.