Esprit - a lifestyle brand aiming to become the European leader in the fashion industry

Master's Thesis from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of applied sciences, Munich (Business Administration), course: MBA Studiengang - Strategic Corporate Management, language: English, abstract: Esprit a fashion and lifestyle brand founded in 1968 in San Francisco, California and its potential to become the leader in the European fashion industry is examined from an internal and external perpective, using a set of analytical and strategic tools. Beginning with general industry-related approaches and ending in a detailed competitor analysis where for example ZARA, H&M and s.Oliver are closely analyzed with a portfolio evaluation and a nine-cell matrix for example. The business process within this industry differentiates between retail and wholesale channels, selling various division lines mostly under heavy time and cost pressure. This is due to short fashion collection life cycles, high product variety depending on fashion trends and styles that come and go. The high level of rivalry in the fashion market is characterized through approximately 60 main competitors forming the strongest competition in the middle and premium price segment. Sustainability, POS experience worlds and celebrity collections do represent the most important commercial fashion trends, whereas from the sales channel perspective online shops are the dominating turnover contributor in the future followed by flagship and outlet stores, both also having a strong growth potential. Within the Esprit corporate brand profile the three brand value competencies 'newness and style', smart and international outfitter and customer focus are disclosed, which are inherited and proven within a broad range of operative measures to increase sales figures and brand awareness. However the competition is not always one step behind but often more than a step ahead, as the key performance indicators of H&M, s.Oliver, Benetton, ZARA and C&A do show up. From a financial view ZARA is in the lead in Europe with 7.07 Billion Euro, whereas H&M is very attractive for shareholders having paid a 2.17 Euro dividend per share and the Italian rival Benetton is ahead in country presence being represented in 120 countries. The contender Esprit dominates the fashion region 'Central Europe' and is best practice in online shops. Nevertheless there is room for improvement and strategic adjustments in sales, marketing and distribution processes to match new business opportunities in existing markets and new markets like Poland or Russia are necessary or strictly spoken unavoidable to achieve further growth in the future in order to fulfil Esprit's entitlement: Europe is our fashion culture.