IMT DUBAI

AAROHI SURYA
ABHISHEK YADAV
POOJA SINGHI
SHIVANG SAH
SHASHANK VERMA

INDEX

1. CASE SUMMARY PAGE 1

2. QUESTIONS PAGE 1~PAGE 2
CAS SUMMARY
li Saab is a high-nd coutur that looks aftr and provids for th Fashion nds of
high-nt-worth-individuals. Th brands focus lis largly on haut coutur- whr
customizd products ar mad for customrs that ar uniqu, and look aftr accssorizing,
hairstyl and othr additional nds ndd For a complt sophisticatd and lgant
look. Howvr, in ordr to kp up with th pac of th industry, th brand also
introducd a rady-to-war (RTW) lin. This was don to Facilitat customrs who
wantd styl, and lganc associatd with Fashion but did not hav th m for
customizd ordrs.

In 1982, Saab opnd his first atlir in Birut and bgan dsigning luxurious vning
gowns and xquisit wdding drsss. His talnt for dsign proplld hr carr in th
1980s. In th 1990s, Saab has continud to xpand its businss by moving to a largr
workshop in Birut and organizing xclusiv fashion shows in urop. In 2000, h
opnd a bauty salon and showroom in Paris to incras its cosmopolitan and
intrnational clintl. A flagship stor opnd in Paris in March 2007. In Jun 2010, li
Saab (S) opnd its first flagship stor in th Gulf rgion in th prstigious Dubai Mall
Dubai. This nw flagship stor has rinforcd brand prsnc in th UA, so it is mor
accssibl to local and intrnational buyrs of local produc. Th stor faturs day
drsss and vning war, shos, handbags and accssoris rcnt (PRT) of prt--portr.
In July 2008, S opnd its first stor in th UK at Harrods. Th company plans to
incras its prsnc worldwid through rtail to opn additional stors in major citis
around th world, including th Unitd Stats and Asia. Although th company has sn
imprssiv growth, managmnt is facd with th challng of choosing th right
partnrs, idntify nw markts with growth potntial and, abov all, th protction of
brand dilution. From th bginning, thir goal was to attract, slct and rtain customrs
who plac importanc on high-nd, on-of-a-kind mad from fabrics and matrials. This
cas focuss on th challngs and opportunitis for th company to xpand
intrnationally.

Qustions

Q1. What is Ss cor businss? Discuss th total product viw (i.., cor, actual and
augmntd).

A1. Thir cor businss is Haut Coutur but thy hav a total of four primary products
lins: Haut Coutur, Rady-To-War, Accssoris, and Wdding Drsss. On top of
ths main four product lins S formd a stratgic allianc with Tatwr (Dubai
Proprtis) to dvlop signatur hotls (Shuayto & Khayyal, 2012, p.4). Formd a 10-
yar fragranc and cosmtics licns contract with Baut Prstig Intrnational (BPI)
and cratd a signatur fragranc. S latr on signd with Wyvs Intrnational Ltd. to
work on th cration of thr mga yachts.

Q2. Complt th SWOT analysis. What is Ss comptitiv advantag?

A2.

Strengths:
High Competitive edge in terms of quality and service.
Good customer hold in Asian countries.
As serving high luxury segment was a reason to generate high revenues for
the firm.
Customized products for the customers could gain positive customer image.
Maintained quality due to very specific manufactures.

Weakness:
Weak presence in multi-brand shops.
The dilution of the brand into many activities and the plan to expand even
further.
Still low sales in Asia, USA and Russia.
Opportunities:
The rise of the number of World High net worth individuals. And of their
wealth, especially in Asia.
The Asian market.
Huge potential in Asia not yet fulfilled.

Threats:
Trend: to mix luxury and affordability.
People tend on dressing more casual.
Party ladies are no longer high class aristocracy but new world billionaire.

Competitive advantage:
Elie Saab was offering competitive couture pricing without compromising on
services. According to the Elie Saab always came up with exceptional service and
top of the line quality. It was also restricted to a particular format of designs and
service provisions. Lastly Elie Saab targeted super wealthy and high end market,
so it could attract such segment of the market which could spend way beyond on
such products.
Q3. In what stag of PLC is th company locatd? How has th companys positioning
and diffrntiation stratgy changd ovr tim?

A3. Th product lif cycl for thir Haut Coutur is in th maturity stag sinc li Saab
has grat xprtis in this product lin but sals for this product tnd to b stagnating. Th
product lif cycl for thir Rady-to-War lin is in th growth stag sinc sals in
constant progrssion.

At first, li Saab focusd xclusivly on Haut Coutur and xcptional custom-mad

clothing for his supr walthy customrs. This followd with th launch of Rady-to-
War clothing lin that xtnding th company portfolio. With mor affordabl and asir
to produc clothing and accssory lin this lad to a gratr rturn on invstmnts and
turnovr.

Q4. What is th companys currnt ntry stratgy? Is this stratgy consistnt with th
companys vision? List th pros and cons for ach ntry mod.

A4.

Licensing:

Pros:

Minimizes risk and investment.

Speed of entry.

Able to circumvent trade barriers

High ROI.

Cons:

Lack of control over use of assets.

Licensee may become competitor.

Knowledge spillovers.

License period is limited.

Partnership:
Pros:

Overcomes ownership restrictions, cultural distance.

Combines resources of 2 companies.

Potential for learning.

Viewed as insider.

Less investment required.

Cons:

Difficult to manage.

Dilution of control.

Greater risk than exporting and licensing.

Knowledge spillovers.

Partner may become a competitor.

Third party distribution

Pros:

Minimizes risk and investment.

Speed of entry.

Maximizes scale.

Uses existing facilities.

Cons:

Trade barriers and tariffs add to costs.

Transport costs.
Limits access to local information.

Company viewed as an outsider.

Q5. Should S targt nw markt? For xampl, should th company targt th mrging
affordabl luxury markt? xplain, and b rady support your answr.

A5. Sinc li Saab dmands rmaining consistnt with its cntr of litnss by kping
on focusing on th top of th lin supr wll off markt dlibratly staying away from
th nw and rising rasonabl luxury markt which comprisd of th wll-to-do working
class. It would appar lik li Saab is twistd on not focusing on th modrat luxury
markt. Th markt that li Saab ought to concntrat on is th world's high nt worth
individuals (HNWI) which as indicatd by th "World Walth Rport 2010, dvlopd by
17.1 prcnt to 10 million in 2009. Worldwid HNWI Financial richs additionally
dvlopd posting a pickup of 18.9 prcnt to $3.9 trillion. Th star ntrtainr was th
Asia-pacific local in which th HNWI population ros 25.8 prcnt to 3 million as
HNWI richs surgd 30.9 prcnt to 9.7 trillion$. Th rport likwis showd that North
Amrica rmaind th biggst hom to HNWIs, with its 3.1 million HNWIs rprsnting
31 prcnt of th worldwid HNWI populac". So li Saab ought to concntrat on th
HNWI in both th North Amrican and also Asia-Pacific ara sinc top of th lin
shopprs ar situatd hr.

Q6. What ar your ovrall rcommndations for S? What markting mix stratgy do
you rcommnd?

A6. lis Saab should continu to grow in nw markts through partnrships, licnsing
and 3rd Party distribution. li Saab nds to look for partnrships that will attract nw
consumrs in nw markts. Licnsing giv thn a grat opportunity to xpand on th
brand whil utilizing th xprtis of othrs in diffrnt industris and will hlp thm to
build brand awarnss. By using third party distribution li Saab lowrs thir risk in
xpanding into a nw markt, this also srvs as a masuring stick to sing th potntial
of a nw markt and hlp building brand awarnss and crdibility. Ovrall, li Saab
nds to maintain thir brand imag of High-nd, on-of-a-kind dsigns mad from th
finst fabrics and matrials (Shuayto & Khayyal, 2012, p.1) and kp providing high
quality customr srvic. Haut Coutur has bn and must continu to b th cor and
soul of li Saabs businss. An incras in promotional spnding on nw mdia will hlp
to grow th brand along with making full us of th clbrity ffct.