Okonkwo Prelims

Level 3: formulate and analyse the strategy alternatives

The third level of the business modelling process involves identifying the
tools to address the already spotted business problems and major business
challenge. At this level, a set of realistic options of alternatives should be
identified to solve the major business challenge and also address the minor
problems. These options should be evaluated, using the pros and cons crite-
ria. The strategy alternatives should also tackle the competitive market
factors and provide the luxury company adequate leverage above its
competitors. The strategies should also be aligned to provide the best output
to fit with the characteristics and expectations of the consumers already
identified on Level One. The analysis of the strategic business alternatives
will often lead to the recognition of one of the alternatives as the most viable
option. The proposed alternative must be justified with a clear statement of
reasons for its choice.
Figure 9.4 provides an indication of some of the features that could be
found at this level of the business strategy model of luxury brands.

chapter 9 273

the luxury fashion business strategy model

Level 2: strategic challenge

Business

problems

Business

challenge

Low sales Market share Slow growth Inventory cost

Increase market share and decrease operations costs

Figure 9.3 The strategic challenge level of the luxury fashion business
model

Figure 9.4 The strategy formulation level of the luxury fashion business
model

Level 3: formulate and analyse the strategy alternatives

Strategy

alternatives

Proposed

strategy

* Customer relationship management and electronic customer relationship management

** Corporate social responsibility

E-commerce adoption

E-commerce CRM & ECRM* Expansion CSR**