The fashion industry is an ever changing field that requires people to stay on top of their game. One day a designer could be the new "it" designer, and the next they could be out. Therefore, sustaining popularity and a name in the fashion world is something that requires a great deal of strategic planning.
Our text discusses how an organizations decision on where to place themselves in the industry can impact their prevalence to crises. With this in mind, we see that this decision is one that must not be take lightly. It should involve a lot of research and strategic decision making.
An organization can choose to operate within a single industry, in multiple related industries, or in multiple unrelated industries. There are both benefits and drawbacks to both, but it seems to me that when done right, operating in multiple related industries decreases a company's overall risk of enduring crises. I believe that Marc Jacobs has done just that.
As a company, I believe that Marc Jacobs' organizational strategy is to practice in related diversification. This is a term our text book defines as operating multiple businesses in related industries.
Not only is Jacobs a top designer of women's clothing, but he also has a men's line, a couture line, accessories, and various perfumes. Because all of these product lines go together and demonstrate the high quality image Jacobs has become known for, the crisis prevalence could be seen as small.
For example, while other top designers are facing issues due to the failing economy, Jacobs is still prevailing with his less expensive lines like "Marc by Marc Jacobs". This ability to branch out to different demographics has helped the company remain profitable when others are in crisis. I feel that following in the footsteps of Jacobs and diversifying product lines would be beneficial to other designers as well.
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