SWOT Analysis of Balenciaga: Evaluating Competitive Advantages, Market Challenges, and Crisis Management in the Luxury Industry
Year: 2024
Type: article
Abstract: The luxury industry is a highly competitive field that has become a part of people's lives. The development of luxury industry is one of the key research topics today. The research topic of this paper focuses on the luxury brand Balenciaga. The research method of this paper is SWOT analysis to explore Balenciaga's core competitive advantages, market challenges, development opportunities and existential threats. The significance of this study is to understand how Balenciaga develops and stands out in the fierce competition in the luxury market. This study introduces the brand history and market position of Balenciaga. In the analysis of the problem, the competitive advantages of Balenciaga are studied, such as the combination of design innovation and tradition. In addition, there are challenges, such as the damage of communication crisis to the brand. However, this paper examines opportunities for Balenciaga's development, such as the use of digital strategies. But there are threats, such as Balenciaga's highly controversial advertising, which has brought a crisis to the brand's reputation. The conclusion shows that these strategies are of great significance to the market management of the luxury industry and are of great value in academic research.
Author: Yaxuan Wang
Institution: Tianjin Natural History Museum
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405332416