1. Oscar de la RentaOscar de la Renta Team One JC Sullivan,Adam Dumaresque, Mitch Getson, Bailey Penney, Jason Khoury, Jennifer Kerr

2. Agenda  Firm Overview  External Analysis  Internal Analysis  Strategic Alternatives  Decision Matrix  Implementation Plan & Contingency Plan

3. Firm Overview Oscar De La Renta  Primarily stand-alone single brand  Current Strategy:  High price, differentiation  Intensity of Rivalry:  High  Recommendation:  Capacity expansion- differentiation

4. External Analysis Strategic Group Map

5.  High price, low differentiation  LVMH : high price high product reach  CK: lower price low product reach  Remain narrow in product reach

6. Internal Analysis Value Chain  Channel selection:  Strategic channel selection helps us market our product  Premium prices can be charged to certain channels  Pricing:  High prices helps us create value without cost limitations  Advertising:  Our niche market is an advertisement in itself  Exclusive fashion shows, high-end magazine covers and boutiques

7. External Analysis Porters 5 Forces Bargaining power of buyers  high Threat of new entrants  low Threat of substitutes  moderate Bargaining power of suppliers  moderate Rivalry among existing competitors  high

8. Financial AnalysisFinancial Analysis  From 1999-2003 was ODLR’s most successful period  Gross Profit Increased 49.8%  Ready-to-wear revenues grew 19% while licensing revenues dropped 16%  Operating expenses dropped 11.1%

9. Strategic AlternativesStrategic Alternatives  Strategic Alternatives  Capacity expansion – Cost Leadership/Differentiation  New business entry – Differentiation  Decision Criteria  Future growth  Alignment with current strategy/core competencies  Customer attraction/retention  Customer satisfaction  Product reach

10. Strategic Decision MatrixStrategic Decision Matrix  Best Alternative:  Boutique Presence & Selective Licensing – CE x D  Second Best:  Expanded Licensing & Market Reach – NBE x D  Third Best:  Low Price Market Entry – CE x D

11. Implementation PlanImplementation Plan  Boutique Presence  Market research on boutique locations  Financing  New Product Breathe  Brand consistency

12. Contingency PlanContingency Plan  Oscar dies: High risk & High impact  Change in fashion trends: Moderate risk & Low impact  Poor economy: Moderate risk & Moderate impact  Trade embargo (politics): Low risk & Moderate impact  Rise of new highly competitive rival: Low risk & High impact

13. Questions Rest In Peace Oscar de la Renta 1932-2014