Free Essay

Gucci

In: Business and Management

Submitted By atif82
Words 1019
Pages 5
Gucci Designs Success with Aldon
CASE STUDY
“We found Aldon Lifecycle Manager for iSeries to be an extremely vital piece of the development process to keep the structure under control. We couldn’t function without it.” – Francesco Morabito, Senior Manager, Gucci Gucci has helped to create and define concepts of fashion around the world for the past 50 years. Gucci's retail arm has relied heavily on the AS/400 to help run its business operations out of their headquarters in Florence, Italy. According to Francesco Morabito, a Development Manager given the mandate of reorganizing the programming environment, they were starting to encounter problems because several different programming teams were operating independently of each other and developing their own customized versions of their retail software package. The solution was to centralize development and bring some structure to the development process by instituting a change management system: Aldon Lifecycle Manager for iSeries.

Background
Gucci had been a long-time user of a retail software package from an outside vendor. Over time, a multi-layered structure of different versions developed. The problem was a lack of commonality between the versions. Morabito explained, “Developers from all over the world were modifying and ‘fixing’ the package. In the end, we had a package that appeared to work. But we had no idea what the software makeup below that was like.“ It was decided to incorporate elements of the three existing regional versions of Gucci’s retail software to create a single version of the retail package. Morabito said, “We realized we needed a change management tool to coordinate development and to facilitate the process of testing.” Aldon Lifecycle Manager for iSeries seemed to be the perfect fit for Gucci. According to Morabito, “The main reasons for wanting Aldon Lifecycle Manager for iSeries were that it was native to the AS/400, it offered a seamless transition for the users because the interface was PDM-like and we wanted to have a distribution process that was AS/400-based.”

A Multi-Layered Approach
While the need for a multi-layered approach to their software has not changed, Aldon Lifecycle Manager for iSeries has made life a lot easier for the programmers at Gucci. The first step in their centralization process was to create the unified production version of the retail package. This common starting point would then be modified to reflect the needs of the three regions: Europe, Asia and the US. Another layer of modifications would then be made to reflect local laws and regulations. The difference this time was that, thanks to Aldon Lifecycle Manager for iSeries, each version was working from a common starting point. Furthermore, all changes and modifications were properly documented and recorded. The fact that much of this code work could be done at the same time further emphasized the usefulness of Aldon Lifecycle Manager for iSeries. Morabito agreed, saying, “it was really a complex scenario that was achieved with several simultaneous operations. It would not have been possible without the help of Aldon Lifecycle Manager for iSeries.

Gucci Designs Success with Aldon

Controlling Development
Aldon Lifecycle Manager for iSeries also resulted in some fairly substantial changes in the way development was done at Gucci. A major part of Gucci’s decision to use Aldon Lifecycle Manager for iSeries was a desire to secure and control the development life cycle. Each development team was assigned an Aldon Lifecycle Manager for iSeries Administrator. “We decided that nothing could happen to the source. No checkout, no promotes, nothing without the Aldon Lifecycle Manager for iSeries Administrator being involved. We knew from the beginning that this would create a huge burden for the Administrator. But that was the only way to start knowing exactly what was happening,” explained Morabito. “We wanted to close the door of the software facility and open it only when we require. We now have very tight controls being enforced with Aldon Lifecycle Manager for iSeries. And that would’ve been impossible without Aldon Lifecycle Manager for iSeries.” But that was only the first step in the centralization process. According to Morabito, now that members of both development teams have become accustomed to a high level of control, some of the restrictions are being eased. “Our second step is to relax the restrictions on the checkout-promote activity, in terms of promoting from development to QA and back to development. We are allowing the developers to do this in order to relieve the burden of the Administrator, who now comes into play only when we’re talking of the promotion from QA to production. So, we still have control over the software facility, but we are giving a little bit of independence to the development teams so they can speed up their work.” Once again, Morabito feels that this level of control would not be possible without the versatility of Aldon Lifecycle Manager for iSeries’s authorities structure.

A Well Deserved Reputation
Morabito agreed that Aldon’s reputation for strong customer service and support was well deserved. He confirmed that the experience with Aldon Lifecycle Manager for iSeries was very positive from beginning to end. This even extends to their dealings with Aldon’s technical people. As he says, “we didn’t have any major problem with support, as far as training goes, as far as feedback, as far as requests for modification or additional instruction on how to better make use of the software. I think we have had a very good response from the Aldon people.” In conclusion, Morabito could only say that Aldon Lifecycle Manager for iSeries has become an essential part of the development process at Gucci. “We have invested a lot of time and resources in this. We found Aldon Lifecycle Manager for iSeries to be an extremely vital piece of the development process, in order to prevent strange changes, or unauthorized changes or simply to keep the structure under control. We couldn’t function without it.”

6001 Shellmound Street, Suite 600 Emeryville, California 94608

Tel +1.510.839.3535 Fax +1.510.839.2894

info@aldon.com www.aldon.com…...

Similar Documents

Premium Essay

Gucci

... FASHION FAUX PAS: GUCCI & LVMH “The brewing battle for Gucci is emblematic of the New Europe that is taking shape with the launch of the common currency and the globalization of industry: two Frenchmen squaring off for control of a Dutch-based Italian company run by a U.S.-educated lawyer and an American designer, and advised by London-based American investment bankers. “Gucci Watch,” Wall Street Journal, March 22, 1999. The Gucci Group N.V. 2000 Annual Report really said it all. Tom Ford, Creative Director, and Domenico De Sole, President and CEO, stood side-by-side facing the camera with eyes of steel. Ford, unshaven and shirt provocatively opened, was the American designer who had single-handedly revitalized the Gucci name. Domenico De Sole, dressed in a dark suit, white shirt, with finely trimmed beard, was the Italian lawyer -turned-businessman who had returned Gucci to profitability and promise. The photograph, of course, by the famous fashion photographer, Annie Leibovitz. These two men represented the defiant spirit of Gucci, a molten mix of high-powered fashion and high-powered finance. These two men had, in the first six months of 1999, been the centerpiece of one of the most highly contested hostile takeover battles ever seen on the European continent. Under attack by LVMH Möet Hennessey Louis Vuitton, the French luxury goods conglomerate, Gucci had implemented the age-old strategy of “the enemy of an enemy is a friend.” Gucci successfully......

Words: 5995 - Pages: 24

Premium Essay

Gucci Value Chain

...Gucci is positioned bellowed Hermes and Chanel and they are on par with Prada and Louis Vuitonn. LVMH appears to be the best positioned brand based on their having the highest operating margin and also the fact that they own their distribution networks. This, coupled with their negotiations with other suppliers allowed for them to enjoy discounting advertising benefits by as much as 20 percent. LVMH was also able to move 70 percent of their previously out-sourced distribution back in-house. Another differentiating factor is LVMH’s diversity in their products from other brands like providing fragrances, shoes, and leather goods. - LVMH also had the most notable names in the business. 2) Gucci’s tangible resources include loyal suppliers, human resources, distribution, Human resources include Tom Ford’s and De Sole’s skills, knowledge and commitment. De sole was the financial and operations guy and Ford was the creative and stylistic inspiration behind the operation. – the relationship between Ford and De Sole was so unique distribution network directly operated stores quality craftsmanship Gucci’s ability to expand into Switzerland, France, US and Hong Kong Flexible production system built on three pillars: skilled artisans, advanced technology and efficient logistics. Production and distribution system will be hard to replicate (4th paragraph, page 11) Tom Ford’s creativity and position as in relaunching Directly Operated Stores – 66% of......

Words: 2421 - Pages: 10

Premium Essay

Gucci Case

...Gucci Business-Level and Corporate Strategy During the late 1990’s, Gucci portrayed the characteristics of a firm with a differentiated business-level strategy. Gucci provides value to their customers with high quality luxury goods which consist of unique product features in relation to their rival competitors. One example of Gucci’s distinct quality is the prestigious image of their brand name using the famous “GG” logo on their items. Gucci is a successful firm in the luxury goods industry with many resources and capabilities that differentiate them from other companies within the industry. The first resource is the management team of Gucci following the millions in losses during the early 1990’s. Two managers in particular are Dominco De Sole, head of Milan office, and Tom Ford who replaced Dawn Mello as creative director in 1994. The duo of Ford and Sole turned the company around from near-bankruptcy to a close rival with LVMH, the luxury goods powerhouse. The two of them possess an intangible resource to Gucci that is valuable, rare, inimitable, and non-substitutable. Ford and Sole are considered to be valuable to the firm because of their leadership and vision to make Gucci a global presence and rare because their management skills are unlike any other firm in the luxury goods industry. What makes the management team a sustainable capability is the difficulty for other firms to match their......

Words: 918 - Pages: 4

Free Essay

Gucci

...History of the Gucci Gucci remained one of the premier luxury goods establishments in the world until the late 1970s, when a series of disastrous business decisions and family quarrels brought the company to the verge of bankruptcy. At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though contributed less to the company than he and his sons did. In 1979, Aldo developed the Gucci Accessories Collection, or GAC, intended to bolster the sales for the Gucci Parfumes sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue. Aldo relegated control of Parfums to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company. Aldo Gucci expanded into new markets including an agreement with American Motors Corporation (AMC). The 1972 AMC Hornet compact "Sportabout" station wagon became one of the first American cars to offer a special luxury trim package created by a famous fashion designer. The Gucci cars sported boldly striped green, red, and buff upholstery and on the door panels, as well as the designer's emblems and exterior color selections. Though the Gucci Accessories Collection was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories......

Words: 319 - Pages: 2

Premium Essay

Gucci Strategy

...Analysis of Gucci Strengths The strength of Gucci is in its established, very strong brand image and international presence. Gucci has also the ability to control its distribution channels. This is part of Gucci’s defensive strategy in the chain value to capture the value added instead of giving it to the middlemen such as suppliers and retailers. The company has also increased the number of their Directly Operated Stores (DOS) as part of the defensive strategy of taking more control of the distribution process. The 2003 figure showed that DOS accounted for 61.3% of revenues compared to a much lower 32.5% in 1999. Its aggressive strategy accomplished through diversification and communication is also another of Gucci’s strengths. Gucci changed its strategy of carrying a single brand to branching out to a multi brand group. This strategy is also adopted by other conglomerates such as Louis Vuitton and Prada. Some luxury companies use the strategy of focusing only on one brand and add other business segments such as what Armani, Polo Ralph Lauren, and Versace did. Read on Discount Luxury Brands Big luxury brands offer discount and cheap luxury products under tough economic time. This strategy is done in order to allow the positioning of the brand in the industry to differ depending on the number of brands and the number of business segments the company wants to compete in. This is the idea behind focus (mono brand) versus diversification (multi-brand). Gucci Group......

Words: 844 - Pages: 4

Premium Essay

Gucci Group, N.V. Case

...Case, Gucci Group N.V. (A) 1. Map competitive positioning of different players in the luxury goods arena and state who is best positioned and why? The luxury goods arena is a highly competitive industry in which companies must position themselves with both objective and subjective differentiating factors. Although humans are usually rational buyers when it comes to commodities and the necessities of life, much of this logic is thrown out when purchasing high-end luxury goods. While high quality is a necessary component of luxury goods, it is the brand’s image that a customer is really purchasing. Taking this into consideration, the true competition in this industry lies not in the technical differences in products offered, but in the perceived extent of luxury status the purchaser will receive upon buying said luxury item. There are several players in the luxury goods arena that have all become household names across the world through their strategic positioning. Currently, Hermes is considered as the “top of the line” luxury goods brand, with Chanel in a close second. Ferragamo is considered to be at the lower-end. For the sake of this case, we will focus on the middle tier, which consists of Prada, Louis Vuitton (LVMH), and Gucci. Firstly, Prada is much smaller relative to many of the big players in this industry, but it has been actively acquiring and growing throughout the last two decades. What started as a high-end luggage company has expanded to a producer of all......

Words: 1716 - Pages: 7

Premium Essay

Gucci

...Introduction Gucci India Story………………… Indian Fashion Retail Landscape FDI Scenario………………… Modes of Entry of Foreign Retailer………………… India as a Manufacturing Hub for Global Luxury Brands Indian Luxury Market Indian Luxury Product Market- A Snap Shot………………… The Luxury Consumer Profile Target Groups for Luxury Brands………………… The Competitive Trend Creating an International Luxury Fashion Brand……… Key issues facing the industry Major Cost Component………………… Gucci as a Company Gucci’s goals and values………………… Philosophy………………… Gucci as a Brand………………… Marketing Distribution Channel………………… Revenue Breakdown Prices in Indian Market The Bumpy Road? . . 2010 ANNEXURES I II III IV V VI VII VIII IX X XI XII XIII KEY DATES………………… INDIA VS CHINA AS A MANUFACTURING HUB……………… THE INDIAN WEALTH LEAGUE………………… SHOW ME THE MONEY- WELATH DEFINITIONS…………… HNWI POPULATION GROWTH RATE 2007 (%)…………… INDIA’S ‘BRAND FREAKS’………………… 28 29 30 30 31 32 33 34 35 36 36 37 NO. OF CATEGORIES VS MARKET IMAGE………………… GUCCI GROUP DIVISIONS………………… DISTRIBUTION CHANNELS………………… REVENUES BY CHANNEL………………… GROUP REVENUES BY REGION………………… CAGR 1994- 2001………………… PPR CONSOLIDATED 2004…… FIGURES AT YEAR END 37 . . 2010 GUCCI Fashioning India 1. Introduction The House of Gucci, or simply Gucci is one of the more established premium fashion brands in the world. Its success worldwide has depended largely on its effective marketing strategies and a wide product range. Founded in Florence in 1921,......

Words: 7640 - Pages: 31

Premium Essay

Dior/ Gucci

...massively in the worldwide network. The creation of an online presence through their website allows them to complement their media channel and to reach more and more potential customers. However, Internet hasn’t been received in the same way by all industries. For example, the luxury industry was afraid to use this new media for many years. Indeed, the luxury world is characterised by idea of high-price products and exclusivity whereas Internet is associated with discount prices and mass communication. Nowanays, luxury brands have understood that Internet must be part of their marketing strategy. In this paper, I’m going to analyze the official websites and the online presence of two well-known luxury brands: Dior (www.dior.com) and Gucci (www.gucci.com) II/ Company profile 2.1 Dior: Spirit and history of the brand Dior is currently one of the biggest brands in the luxury world. The French company is named after its designer Christian Dior who established the company in 1947. After years of privation during the Second World War, the goal of Christian Dior was clear: he wanted to go back to luxury, feminity, grace and lightness. With his first collection  « New look », the designer offered an avant-gardist shape characterised by full-skirt, large bust and smaill waist. This collection was the symbol of a real revolution in the fashion world industry and had a huge influence on other......

Words: 5666 - Pages: 23

Premium Essay

Gucci Case Study

...fashion, luggage, jewelry, cosmetics, fragrances, watches, and drinks. In the luxury goods business there are 35 companies that share 60% of the market, but only 6 of them have revenues in excess of $1 billion. Considering the definition explained before, the most important companies which belong to the market are: Louis Vuitton, Cartier, Gucci, Prada, Hermes, Bulgari, Tod’s, Celine, Jil Sander, Kenzo, Valentino, Lacroix, Donna Karan, TAG Heuer, Armani, Tiffany, Chanel, Ralph Lauren and Tommy Hilfiger. It is an interesting market because it is completely focused on the quality of the product from every point of view: the beauty and the design of the product, the refinement and affectation of raw materials, the meaning of the product (the style and the social status of the person to whom it belongs) and the values and emotions that it transfers. As a result, the company focus is mainly on differentiation rather than on cost, therefore these companies follow a differentiation strategy in order to obtain a differentiation advantage. This feature of the market is reflected on the companies’ results, for example looking at the return on sales ratios of Gucci (27% in 1999) in relation to ther company markets like Coca-Cola Company (10,6% in 2000), Amazon (6,8% in 2000) and Dell (8% in 1998). Considering the market in general, LVMH holds the first position followed by Vendôme that represents the leaders of the market. While Vendôme’s products portfolio regards watches, jewelry and......

Words: 292 - Pages: 2

Free Essay

Gucci History

...If you saw it written in a novel or watched it as a movie, you simply would not believe the goings-on in the Gucci family. The firm was founded by one Guccio Gucci, in Florence, in 1923, as a manufacturer and retailer of travel luggage, in high quality leather. Guccio had been a humble dish washer by trade, but he had worked in some of the best hotels in London and Paris, and was inspired to return to Florence, a city renowned for the quality of its artisans and its fine quality of work, to begin the manufacture of high quality luggage. Guccio Gucci - library photo, PPR website Gucci expanded into the large towns and cities of first Italy, then Europe and later the rest of the world, and along the way it also expanded its range of goods. Still using mostly leather, but with some other materials and fabrics, such as bamboo and silk, Gucci branched out into belts, wallets, shoes, handbags – and latterly, cases for mobile phones, i-Pads, and so on. The family controlled the business until comparatively recently, but it was a history of family intrigues and boardroom tussles dating back over many decades, before it became part of the luxury goods conglomerate, Pinault/ Printemps/ Redoute (PPR), where the scandal comes in. Guccio had six children, but only sons Vasco, Aldo, Ugo, and Rodolfo were directly involved in the business. After Guccio's death in 1953, Aldo led the company to a position of international prominence, opening the company’s first shops in London,......

Words: 840 - Pages: 4

Premium Essay

Marketing Plan: Gucci

...Chosen Brand: GUCCI Company brand positioning via consistency/interaction Gucci’s brand position is catered to higher end clientele, conveying a sense of exclusivity and high quality. Magazine photos often show slim, good looking models wearing Gucci products in various exotic poses and locations (eg, by a greek sculpture). The caption is always visible, simple, and displays the word GUCCI in large, bold letters. GUCCI maintains the same brand position, but a different marketing strategy on the social media front, adding to the brand’s consistency and reinforcing the high end image in the consumer. There is also some interaction between the two medias. Their Facebook page often shows images of items displayed in magazines and other traditional media, but goes a step further with other content and photos of famous clients wearing their product to convey a sense of inclusion for the customer. Insights of Effectiveness Traditional media like magazines do not offer a crossover to other market segments. For example, young males would not pick up a Cosmo magazine and will not see any of the GUCCI adds inside. Therefore market diversification is difficult. However, traditional media does allow for greater exclusivity and allows for more effective targeted marketing. Gucci uses social media applications such as Facebook to reach a more diverse consumer base. Social media is effective in empowering consumers to spread the word about the brand themselves. This......

Words: 502 - Pages: 3

Premium Essay

Gucci Analysis

...Brief History          Guccio Gucci opened a small shop selling leather goods on the via del Parione in Florence in 1923. He sold luggage imported from Germany and offered customers with repair services. As the luggage business prospered, he opened his own workshop to produce his own design. The business in the 1920’s created huge profit and success however in the 1930’s Gucci began to face some challenges when the sanctions imposed on Mussolini. He faced shortage of imported leather yet this challenge gave him innovated idea of using new materials such as canvas and produced small leather goods, wallets and belts that are still big part of the Gucci company. Gucci became an internationally known luxury brand after World War II and over the next two decades the company flourished. In the1970s Gucci began to fall down due to internal conflict. Most of the conflict was between Aldo and Rodolfo Gucci, the founder’s surviving sons over strategy and control of the company. Rodolfo Gucci died in 1983 and left his 50% stake in the company to his son Maurizio. One year later, Maurizio seized control over Gucci and determined to transform Gucci into a modern retail organization. Maurizio failed. Years later, Tom Ford and Domenico De Sole are given the credit for turning Gucci around in 1994 and turned the company into a powerhouse luxury brand. This case study will discuss why Maurizio failed to transform Gucci and how Tom Ford and Domenico De Sole rebuilt Gucci again. Luxury......

Words: 2903 - Pages: 12

Free Essay

Etude de Cas Gucci

...les entreprises du luxe : L'exemple du succès mondial de GUCCI |SOMMAIRE | Introduction.................................................................................................................................3 I. Le marché du luxe confronté à une concurrence exacerbée....................................................4 II. Diagnostic global....................................................................................................................5 III. Diagnostic interne.................................................................................................................7 IV. Axes stratégiques passés et futurs.........................................................................................9 Références.................................................................................................................................11 INTRODUCTION Quelle est l’histoire du groupe Gucci? |Les points importants de l'histoire de la compagnie sont comme suit: | | |  | | |1921 |[|Fondation de la compagnie par Guccio GUCCI à Florence en Italie ......

Words: 3329 - Pages: 14

Free Essay

Overview of the Gucci Group Case

...Gucci’s origins date back to 1921 in Florence Italy. It was started as a leather goods store by a man named Guccio Gucci. For the next fifty years after its creation, the Gucci logo had become a well-known fashion image. It wasn’t until the 1980’s when the company began to struggle due to aggressive branding, a poor licensing strategy, and an array of family altercations about who will be the progeny of Guccio Gucci. Finally, Maurizio Gucci, Guccio’s grandson, took control of the company in 1984 and restored it as a luxury brand. Within the next ten years, business began to plummet once again and Maurizio was compelled to sell his shares to Gucci’s second-largest shareholder, Investcorp. Investcorp’s two newly appointed executives, Tom Ford and Domenico De Sole, transformed Gucci back into a superior fashion brand within five years. The sales raised from $200 million in 1994 to $1 billion in 1999. This success caught the eye of many investors, such as French luxury group LVMH, which acquired 34% of Gucci’s shares by 1999. To protect their company from a takeover, Gucci established a new equity by offering 40% of its shares to PPR, a French global retail and luxury group. The new shareholder helped Gucci create a corporate of multiple luxury brands. There was a total of eight Gucci different brands each with their own management system and designer. Once Gucci became a multi-brand company, its family oriented and centralized business approach began to collide with PPR’s more......

Words: 2025 - Pages: 9

Free Essay

History of Gucci

...92 Years of History of Gucci (1921 – 2012) 1920s In 1921, Guccio Gucci opened a leather goods company and small luggage store in his native Florence. Though his vision for the brand was inspired by London, and the refined aesthetic of English nobility he had witnessed while working in the Savoy Hotel, his goal on returning to Italy was to ally this classy sensibility with the unique skills of his native Italy. Specifically, with the master craftsmanship of local Tuscan artisans. 1930s Within a few years, the label enjoyed such success the sophisticated international clientele on vacation in Florence thronged to Gucci’s bottega, seeking the equestrian-inspired collection of bags, trunks, gloves, shoes and belts. Many of Guccio’s Italian clients were local horse-riding aristocrats, and their demand for riding gear led Gucci to develop its unique Horsebit icon - an enduring symbol of the fashion house and its increasingly innovative design aesthetic. 1940s Faced with a shortage of foreign supplies during the difficult years of Fascist dictatorship in Italy, Gucci began experimenting with atypical luxury materials, like hemp, linen and jute. One of its artisans’ most subtle innovations was burnishing cane to create the handle of the new Bamboo Bag, whose curvy side was inspired by a saddle’s shape. An ingenious example of “necessity as the mother of invention”, the bamboo became the first of Gucci's many iconic products. A......

Words: 1015 - Pages: 5

1x922 Acacias 38 | http://www.zoosoftheworld.com/view.php?trackid=731738567 | MERIWOOL Merino Wool Men's Boxer Brief Underwear - Charcoal Gray