Business Strategy

Business Strategy

  • Submitted By: B-Griffin
  • Date Submitted: 04/16/2014 9:59 AM
  • Category: Business
  • Words: 1167
  • Page: 5
  • Views: 1

Poltrona Frau, Cassina and Cappellini’s attempt at rebranding and repackaging themselves as a globalized powerhouse collective is a tall order. Compared to Gucci and its place in PPR, neither of the three Italian furniture brands is glaringly more popular or cash-flow rich than the others. This makes it difficult in a sense, because a collective of these three Italian furniture brands does not have a ‘star brand’ as leverage to work with. In game theory, knowing how one-time competitors can complement and harm one’s own brand is part and parcel of the tit for tat methodology of game logistics of commerce. For instance, in the world of computers, Apple, Lenovo and Microsoft help each other, in a combinative and ambient sense, by creating a greater awareness and need for their technological products through their respectively proactive business models However, Neither Poltrona Frau, Cassina or Cappellini, even when re-branded as a cohesive whole, can amplify or enhance the consumer’s needs and wants for artisanal upscale Italian furniture. Since Charme’s shareholders will be looking for expeditious returns on investment, due to Charme’s status as a private-equity firm, there will not be much ‘growing room’ or windows of opportunity for Poltrona Frau, Cassina or Cappellini to take their time with expanding real estate fronts, brand images or expanding product lines. Research and development takes time and investors want quick results and positive cash flow in a short time.
Unlike Gucci, multibranding strategies will be difficult to implement for the Italian furniture companies. Gucci, even though it is a fashion house and couturier, also sells lines of home products, furniture and other complimentary products. Poltrona, Cassina and Cappellini only specialize in high-end, handmade furniture. Because of this, they will have to either quickly branch out into other ancillary markets, such as offering mid-tier and cheaper furniture with an ‘artisanal’ aesthetic to it...

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