SWOT Analysis

STRENGTHS 

• Rapidly Growing Luxury Lifestyle Brand with Best-in-Class Growth Metrics : 58.1 % and 28.0% revenue growth in Fiscal 2011 and Fiscal 2010 respectively.

• Design Vision led by World-Renowned, Award-Winning Designer . Michael Kors, a world-renowned designer, personally leads the design team. Michael Kors and his team are responsible for conceptualizing and directing the design of all products, having this design leadership is a unique advantage. He is very involved with the marketing and publicity strategy and is closely identified with both the brand that bears his name and the company in general.

•  Poised to Take Share in the Growing Global Accessories Product Category . According to the Altagamma Studies , from 2005 to 2010, the accessories product category was the fastest growing product category in the global luxury goods industry representing 25% of total luxury goods sales.

 

WEAKNESSES

• Since the e-commerce business is
 now operated by Neiman Marcus direct privacy breaches and the 
engagement of third parties to operate the e-commerce business could negatively affect our reputation, credibility and businessreducing our ability to attract and retain customers.

•We are responsible for storing data relating to our customers andemployees and rely on third parties for the operation of oure-commerce website, michaelkors.com , and for the various socialmedia tools and websites we use as part of our marketing strategy.

•However Michael Kors does not control these third-partyservice providers and cannot guarantee that no electronic or physical computer break-ins and security breaches will occur in the future. 

OPPORTUNITY

•    Bringing e-commerce in-house: Michael Kors has plans to bring its e-commerce operation currently operated by Neiman Marcus in-house. This should improve the customers experience of the brand while on the web, increase margins and exceed management's current targets of e-commerce generating at least 10% of North American retail revenue longer-term.)

•     US and Canada e-commerce will be in-house and operational with a new site and platform by February 2014, with Europe to follow within a 6-8 month period, and Japan and China down the road. Finally, since 40% of the e-commerce site web traffic is driven by international viewers that the company currently can't ship to, bringing e-commerce in-house and developing these capabilities creates many more opportunities for market share gains down the road.

THREATS

•There is an abundance of competitors in the luxury apparel and accessories business.

•Keeping in touch with the target customer is eminent for the 

growing success of the brand.