Thursday, February 5, 2009

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!


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