Evaluation Essay Sample on Cartier Jewelry

Introduction

Cartier jewelry was founded in Paris in 1847 by Louis-Francois Cartier. The company is among the biggest names in the business of luxury products and jewelry. Currently, Cartier is ranked as the number one manufacturer of custom-made designer luxury jewelry in the entire world. The company has over 200 outlets in larger and smaller cities like London, New York, and Paris. Cartier is currently a subsidiary of a South African company, Richmond which is based in Switzerland. The company, however, keeps seeing limited growth in its retail space. Business performance can be influenced by a number of internal and external stimuli. The jewelry industry is a somewhat complicated and very diverse business. This paper will analyze the macro and microenvironment of Cartier jewelry examining the challenges that affect its performance.

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PESTL analysis of Cartier

Political

Political factors include regulatory frameworks operating in the judicial system which can affect the business in varying ways (Capfer, & Bastien, 2009). There have been regulations and laws when proposed in the field of business and Cartier has agreements in its operation under which its business location is based from which they have established business services and products from within distribution and operation of a balanced process. Cartier have incorporated politically-catered business sites which are easily available to target markets and prospected buyers.

Economical

The country's economy is dictated by the performance of its GDP which facilitates a good market for all business and vice versa. Cartier enjoys an excellent reputation for merchandising the finest of accessories and wristwatches. It exposes a feasible economic attendance bringing in enhanced tourism due to its products quality standards and excellence in substantial and positive economic benefits for key players, the management and their partners in the business (Mbaskool.com, 2018). They offer a benefit of bringing in more employment opportunities and offer enough for a stable business economy of luxury products. The company has, however, seen limited growth in the retail space which has not been helped by the increase in malls where their presence is lower in the retail outlets compared to the majority of its competitors. In the case where inflation increases this leads to higher prices of raw materials which thus lead to high prices of their products.

Social

Cartier assimilates social options in the notion that it offers clients clear importance regarding business pathways as the corporate executives are allowable to intermingle socially into the sphere of business performance in Cartier and leadership in the manufacturing of products (Okonkwo, 2009).

Technological

Advances in technology are used in Cartier to find improvements in raw materials to use to make popular watches which facilitate in the promotion agenda in to persuade potential buyers with better and desirable products. Technology plays a vital part in Cartier in areas of possible innovation and updates in internet adaptability (Mbaskool.com. 2018). Levecq, suggests luxury fields need technological innovations to supersede competition forces

Legal

In the legal sense, Cartier ideally places true significance on existing business operation rules and regulations. The consideration of legal aspects allows for analysis as well as the process of development allowing Cartier to get into a pattern of efficient business performance. Cartier needs to enact laws that are ideal for its key players to follow such as the appropriate waste disposal of raw material used since if not adequately dealt with the can continue to pollute.

A SWOT analysis of Cartier

Strengths

The company has various strengths which give it an upper hand to its competitors. Their products quality are designed for individual customers and they are not only classy but inventive. The designs are unique and take note of all individual tastes. They have a wide portfolio since despite them making jewelry and wristwatches they also make scarves, cigarette lighters and other low key accessories. The company has a rich history from the early years when it was established, and since then their designers have been making signature custom-made jewelry pieces, and as of now, they have diversified their operations worldwide (Dyson, 2004). They as well have multiple channels from which they use to sell and distribute their products to a wide range of customers (Bhasin, 2018, June 28). As of 2017, they had around 200 retail channels which are exclusive Cartier stores, but most are metros or tier 1 stores.

Weaknesses

The brand Cartier is positioned as something which embraces elegance and luxury, and their designs are inspired from history with an ancient or medieval feel (Levecq, 2016). The company, however, has some weaknesses as for one they are lacking in differentiation. The company still relies entirely on the brand image which was established in the past. Their competitors have grown the more and more medium-sized business which are making similar products to them. Some of this competitors have resulted in fake imitations which harm the brand reputation and sales. Cartier suffers from having low margins. Cartier is a luxury brand and thus can only cater to the higher income segment. Moreover, the expenses of marketing and designing, as well as retailing and distribution are normally inflated for luxury brands (Mivian strategies, 2014).

They are faced with the challenge to innovate as the competition within the luxury industry is mounting at a high rate (Dion, & Arnould, 2011). Cartier was a forerunner in the luxury and designer industry when it started its operations and therefore have had a considerable client base however, in the present day a lot of competition exists, and designers are getting the better hand in the luxury market.

Opportunities

Opportunities refer to those avenues surrounding a business on which it can take advantage of on to escalate its profits (De Mooji, 2018). Imposing new markets and categories in luxury products could give them a boost in the competitive industry. Some of the categories they can dive into include cuff links, formal designer wear in which new avenues are opening up (Robson, 2015).

Threats

There are factors in the industry which can be damaging to business growth. Competition is the greatest threat to many business and carter has a number of them. The main competitors of Cartier are Pierre Cardin, Versace and Graff diamonds Vickers, & Renand, 2003). Another threat involves the difficulty in attracting customers. Luxury brands are facing a considerable challenge from customers switching brands. Due to their low purchase frequency, the company would need to retain clients for as long as possible.

Cartier has different plans the aim to execute to not only help them deal with present challenges but also elevate their potential for new markets and better returns creating an ideal avenue for Cartier company expansion. Strategies would include offering robust customer services, they are able to offer excellent services, but they should diversify and ensure all customer receive excellent products and feel happy with services offered (Boxall, & Purcell, 2011). Another includes ensuring more efficient standards and quality approach, and disciplined business operations and manufacturing state. They aim to continue to strengthen its global market presence for supreme sales and profit, incorporate drivers of technology innovation and performance growth, and the delivery of fine products

References

Bhasin, H. (2018, June 28). A SWOT analysis of Cartier. Retrieved from: https://www.marketing91.com/swot-analysis-of-cartier/

Boxall, P., & Purcell, J. (2011). Strategy and human resource management. Macmillan international higher education.

Capfer, N., & Bastien, V. (2009). The luxury stage (pp. 210-214). London: Kogan page.

Cusick, K. (2018). Marketing analysis: Cartier. Retrieved from: www.behance.net/gallery/68857655/Marketing-Analysis-Cartier

De Mooji, M. (2018). Global marketing and advertising: understanding cultural paradoxes. SAGE publications limited.

Dion, D., & Arnould, E. (2011). Retail luxury strategy: assembling charisma through art and magic. Journal of Retailing, 87(4), 502-520

Dyson, R., G. (2004). Strategic development and SWOT analysis at the University of Warwick. European journal of operational research, 152(3), 631-640

Kapferer, J. N., & Bastian, V. (2012). The Luxury Strategy: Break The Rules Of Marketing To Build Luxury Brands. Kogan Page Publishers.

Levecq, M. "luxury 2.0.-Can e-commerce become a competitive advantage for fashion luxury brands?"

Levecq, M. (2016). Luxury 2.0 (doctoral dissertation, UNIVERSITE CATHOLIQUE DE LOUVAIN).

Mbaskool.com. (2018). Cartier SWOT analysis, competitors & USP. Lifestyle and retail. Retrieved from: www.mbaskool.com/brandguide/lifestyle-and-retail/2662-cartier.html

Mivian strategies. (2014). Business strategies: Strategic analysis of Cartier company. Retrieved from: https://mivianstrategies.typepad.com/blog/2014/05/strategic-analysis-of-cartier-company.htmlOkonkwo, U. (2009). Sustaining the luxury brand on the internet. Journal of brand management, 16(5-6), 302-310.

Robson, W. (2015). Strategic Management and Information Systems. Pearson Higher Ed.

Vickers, J. S., & Renand, F. (2003). The marketing of luxury goods: exploratory study-three conceptual dimensions. The marketing review, 3(4), 459-478