business model are not mutually exclusive but are inter-connected and have
an organization-wide impact. For example, the proposed strategies should be
incorporated with consideration of the current strategies of the company and
its competitors as well as the environmental factors. Another crucial element
in the strategy modelling process is the relationship between the proposed
strategies and the core competences. The core competences directly address
the needs of the consumers and are considered the root of the strategy formu-
lation process. Therefore the business strategies should be in congruence with
the core competences to ensure feasibility. This guarantees that the proposed
strategies are implemented without sacrificing the real values and strengths of
the company.
The complete business strategy model for the luxury fashion sector is
presented in Figure 9.7. It indicates the inter-relations and inter-connectivity
of the different levels and features.
End notes
This chapter has highlighted the steps required in business modelling for the
luxury fashion sector. As previously indicated, however, the model is not a
magic tool for everlasting business success, but rather a guide that facilitates
strategic direction. Its huge potential and positive impact will be most appre-
ciated if it is applied effectively and revised frequently. This includes identi-
fying and applying the features that are intricate to each luxury brand.
The principles of the business strategy model can be applied not only in
the luxury fashion sector, but also across several industries.
chapter 9 277the luxury fashion business strategy model