SWOT ANALYSIS ON LIZ CLAIBORNE

SWOT ANALYSIS ON LIZ CLAIBORNE

Liz Claiborne, Inc. is a fashion company founded in 1976 in New York City that designs and markets a wide range of women's and men's apparel, accessories and fragrance products. In 2006, the company generated sales of nearly $5 billion. The company sells directly to customers throughout the world through 399 specialty retail formats, 625 concessions, 336 outlet and 13 e-commerce sites. Products marketed to men are labelled without the founder's first name, leaving the gender-neutral "Claiborne." The company's brands are available at more than 30,000 different retail locations throughout the world. As of 2006, Liz Claiborne employed more than 17,000 people worldwide and was ranked 440 in the Fortune 500 list. In the film The Corporation a $178 Liz Claiborne jacket, made in El Salvador, was said to realise 74 cents to the worker for every jacket made.

In 2007, Issac Mizrahi ended a lucrative, years-long deal with Target to become the designer of Liz Claiborne New York, the revamped women's Liz Claiborne line, which was released in Spring 2009. Mizrahi had designed hundreds of successful shoes, women's clothes and bridal wear, and household items for Target.

Liz Claiborne announced that it had named Isaac Mizrahi to the position of Creative Director for the Liz Claiborne New York brand in 2008. His collection debuted in Spring 2009 with Macy’s and Dillard’s as its flagship carriers. One of the smaller stores to carry the line, Gottschalks, declared bankruptcy and was liquidated only weeks after Mizrahi's launch. Liz Claiborne outlet stores also carried the line. Later that year, it was announced that the Liz Claiborne New York line, designed by Mizrahi, would be sold on television shopping network, QVC. As of December 2009, the Liz Claiborne Web site was no longer available to make online purchases.

SWOT ANALYSIS ON LIZ CLAIBORNE

Strengths

• Brand Recognition
  
• Understanding Customer Needs
  
• New Product Lines
  
• Advertising Scheme
  
• Product Diversification Strategy
  

Weakness

• Tailor to Changing Needs Preferences and Lifestyles
  
• Changing Consumer Needs
  
• Highly Competitive Market
  
• Long Lead Time Bringing New Styles to Market
  
• Clothing Line is Complete Success or Costly Mistake
  

Opportunity

• Overseas Markets
  
• Worldwide Advertising
  
• Entering the Large Size Consumer Market
  
• Designing Mix- and- Match Outfits
  
• Men's sportswear
  

Threats

• Key Competitors
  
• Strict Government Regulations
  
• Changing Shopping Patterns
  
• Quota Restrictions
  

 

[Dhruv Bindhani]

This SWOT analysis examines Liz Claiborne, Inc., a prominent fashion company founded in 1976, during a critical period of strategic shifts, particularly between 2006 and 2009. The company's efforts to revitalize its brand and adapt to market changes are evident throughout this analysis.

Strengths​

Liz Claiborne, Inc. possessed several key strengths. Foremost among these was strong Brand Recognition, established since its founding in 1976, allowing it to generate nearly $5 billion in sales in 2006 and rank among the Fortune 500. This recognition extended to a global scale, with its brands available in over 30,000 retail locations worldwide and direct sales through 399 specialty retail formats, 625 concessions, 336 outlets, and 13 e-commerce sites. The company's ability to create New Product Lines, exemplified by the revamped Liz Claiborne New York line designed by Isaac Mizrahi, showcased an effort to innovate. An effective Advertising Scheme would have been crucial in promoting these new lines and maintaining brand visibility. Its Product Diversification Strategy, offering a wide range of women's and men's apparel, accessories, and fragrance products under various labels (including the gender-neutral "Claiborne" for men's products), demonstrated a broad market approach.

Weaknesses​

Despite its strengths, Liz Claiborne faced significant weaknesses, particularly concerning its adaptability and market responsiveness. A major challenge was the ability to Tailor to Changing Needs, Preferences, and Lifestyles, indicating a potential disconnect with evolving consumer tastes. This directly ties into Changing Consumer Needs, which the company struggled to keep pace with, especially given the "Highly Competitive Market" it operated in. A critical operational weakness was a Long Lead Time Bringing New Styles to Market, which is detrimental in the fast-paced fashion industry. The success of its new clothing lines was a high-stakes gamble, as each launch risked being either a "Complete Success or Costly Mistake," suggesting a lack of consistent, predictable hits. The decline of its online presence by December 2009, with the website "no longer available to make online purchases," indicated a failing e-commerce strategy. The low worker wages (74 cents per jacket) highlighted in "The Corporation" film, while not directly a weakness of product, could point to ethical concerns or supply chain vulnerabilities.

Opportunities​

Several strategic opportunities were available for Liz Claiborne to explore. Expansion into Overseas Markets beyond its existing global presence offered significant growth potential. Broader Worldwide Advertising could further leverage its existing brand recognition. Identifying and Entering the Large Size Consumer Market represented a specific, underserved segment. Opportunities existed in Designing Mix-and-Match Outfits, catering to consumer desire for versatile wardrobes, and further developing Men's sportswear. The engagement with Isaac Mizrahi was a clear attempt to capitalize on the opportunity to bring in fresh design talent and revitalize the brand's fashion appeal.

Threats​

Liz Claiborne faced numerous external threats. Key Competitors in the highly saturated apparel market constantly vied for market share. Strict Government Regulations (though not specified, common in international manufacturing and trade) could impose additional costs or operational hurdles. Changing Shopping Patterns, particularly the shift towards online retail and fast fashion, posed a significant challenge, as evidenced by the company's own e-commerce issues. Finally, Quota Restrictions (likely related to international trade and manufacturing) could limit production volumes or increase costs, impacting global supply chains. The bankruptcy of one of its new flagship carriers, Gottschalks, immediately after a major launch underscored the volatility of retail partnerships.