Dealing with the Environmen

Lucky for GUESS, they do not depend on certain weather to attract customers. Sure a blizzard may not bring as many people as a warm spring day would, but the business doesn't depend on certain seasons. Something Guess relies on very much is the stability of the economy. Guess is lucky because their logo is so well known that it enables them to expand and prosper even during economic slowdowns. So it seems the connection is that a strong brand equity equals some comfort during recessions for the company. Another external factor in the environment are the distribution channels. Guess has retail and wholesale networks established in each of the main regions that they operate.
By being flexible and leaving options open, Guess adapts more rapidly to any changes in the distribution environment in any given region. Competitors are an external factor for Guess. Companies like The Gap and Polo Ralph Lauren have greater financial resources than Guess. Guess combats this by striving to have more a well known brand image and a better quality of design.
Internally, Guess holds the relationships with their employees high. The relationship is something that Guess can control and it is something that benefits them. If employees are nice and skilled at what they do, this will attract customers.
Another important internal factor are the people who are high up on the management team. Two people in particular; Maurice and Paul Marciano. They are both founders and majority owners. If for some reason they decided not work at Guess anymore, it could have negative affects of the sales of Guess merchandise. This is because they both drive the company and oversee that the company is successful. If someone new came in, they may not be able to properly handle all of the responsibilities!

Positioning

Let's define positioning. Positioning is the place the product holds to its target market relative to its competitors. I would say some of Guess' competitors are Bebe, Ralph Lauren, Calvin Klein and definitely others. The target market in my opinion would be teens to the late twenties. Obviously some buyers exceed the target market range. I included the link to a website I found interesting. It discusses how Guess wasn't always positioned so well. Their clothing did not always hold such a high place to its target market relative to its competitors a few years back. Now although Guess clothing may be a bit pricier to the target market compared to its competitors, they are growing faster than ever. So it is evident that the customers understand that they are paying more for quality. They are making more money from their products and still attracting many customers. This keeps Guess' positioning up high. The customers keep coming back because at Guess they can find fits and washes in denim that they can't get from there competitors; again putting them ahead. Guess has grown drastically and continues to do so because their revenue is increasing and they are surpassing their competitors with quality.

http://www.businessweek.com/magazine/content/06_51/b4014079.htm