Okonkwo Prelims

any business venture, irrespective of sector. They are also useful for compa-
nies that intend to expand, restructure or re-align their business approaches
to suit changing market needs. A business strategy model can be compared to
a road map. When a driver embarks on a new journey, he needs a map to
guide him. In some cases, the driver might have travelled down that road in
the past but there might also have been several changes and even new routes
since his previous trip. This calls for the road map. Without a map, the driver
would be likely to get lost or arrive at his destination later than he would have
done with the assistance of a map. This scenario is applicable to every busi-
ness including luxury fashion brands. Without the map, which in this case is
the business strategy model, luxury brands would find it tough to advance in
the marketplace.

The business strategy modelling process

As indicated earlier, business models are brand-specific because every luxury
brand has features that make it unique and different from others. This means
that the process of developing a business model for luxury brands and compa-
nies in other sectors ought to be flexible in order to accommodate company-
specific features and market changes. As a result, the process of crafting a
business strategy model for the luxury industry shown in this chapter is not a
strict and inflexible magical tool but is aimed at providing a general direction.
The identified features in the business model presented are aspects of the
luxury goods industry that affect the majority of luxury brands to varying
degrees. The business modelling exercise can be applied by both old and new
luxury brands.

chapter 9 269

the luxury fashion business strategy model

External environment

Microenvironment

Internal environment

Figure 9.1 The environmental analysis levels of business modelling