Prada Case Study Strategy

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The future looked bright for Prada in 2012, they wanted to expand to Africa, going beyond their comfort zone, where the risk is. They completed their best year ever, earning $539 million on revenue of $3.2 billion (Bertelli). However, two years later they hit a stall in their company. They reported a 28.2% dive in net profits to 450.7 million euros and an operating profit decrease of 25.3% to 701.5 million euros in 2014 (Prada Moves To Adapt). Also, Prada’s shares in Hong Kong dipped 1%, dropping sales 17%. Profits were hurt due to a combination of decreased consumer spending and less tourism in Europe as well as a slowdown in the Pacific region (Market Readjustment). The Asia-Pacific region is Prada’s biggest market, accounting for more than…show more content…
However, despite these drops, Bertelli has insisted that Prada will still continue production and research in order to figure out what is best for the retail network. The fashion industry is evolving and changing every season and Prada, despite hardships, is still the leader of luxury due to their fast changes to keep up with the environment. They are now considering different markets and figuring out the best way to adapt to the changing environments, such as changing products and focusing on investing its retail channel. It is stated that Prada remains on top of the luxury market despite an increase in competition (Prada Moves To Adapt). Prada’s director of marketing, Sefano Cantino, stated, “we don’t feel under attack from any entry price points. The market is crowded and more competitive, but Prada and Miu Miu leverage incredible brand awareness and credibility” (Market Readjustment). Prada is aware and always on the top of their game in terms of strategy and how to better engage the customer and work with the ever-changing environment. These changes include cutting back on the number of…show more content…
They plan on building a stronger organization to ensure the best quality to the customer. Communication will remain Prada’s strongest drivers to support stores and sales, this company was built on strong values and they will stick to this openness and honesty despite a decline in sales. Through the complete change of the luxury goods market, Prada’s commitment remains on their creative and innovated thoughts and products. They have set up a new factory for production, allowing the company to bring in-house a number of steps that used to be outsourced (Zargani). Another strategy they are using is the use of technology. They have invested in digital communication and using more of social media, something that is definitely new ground in the fashion world. By redesigning their website, they hope to increase in the e-commerce field but at the same time maintain the same, high-class image of the retail network. Prada does not want to dilute any of their reputation or awareness (Market Readjustment). The company remains confident

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