It's in the Bag. Or Is It? Michael Kors' Quest to Stay at the Top

Ferraro, Fabrizio; Baldo, Andrea; Tozer, Alice; Arribas, Verónica

Product #:SM-1619-E

Supplier:IESE Publishing

Discipline:Strategy

Setting:China; Estados Unidos; Reino Unido, 2014

Details:Case (PDF) • 8 pages • 2014-12-18

Subjects:

Geography:

China Asia

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$10.54

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The case "It's in the Bag. Or Is It? Michael Kors' Quest to Stay at the Top" describes the meteoric rise of this fashion company and outlines the strategic options it might consider for the future. The year 2014 marked three years since Michael Kors Limited had completed a successful IPO. But John Idol (CEO) and Michael Kors (Chief Creative Officer) needed to take stock. There were indications that the handbag market might be becoming saturated. Also, there were concerns that the brand risked losing its appeal. International growth was critical to the future of the company and it remained to be seen whether its approach would work in Europe and Asia.

Learning Objectives

This case can be used in MBA and executive education courses on strategic management in the apparel, fashion, and luxury goods industry. It might also be of interest for a competitive strategy course, with a focus on discussing the challenges of maintaining a competitive advantage in this industry. The case can be used to understand the challenge of maintaining an edge in markets characterized by fashion cycles. It can also serve to introduce the topic of how to maintain a balance between sales growth and keeping a brand unique. A number of key strategic questions can be addressed with the case. The choices made in terms of positioning, distribution channel mix, growth pace, and logic of internationalization can be analyzed in class and provide the basis for a discussion of options for the future.