Trust in Teamwork

Summary

In this report, Chanel which belongs to the luxury industry, especially in fashion, is chosen for our investigation. With the development of Internet, Chanel is also facing the challenges and opportunities of the wave of Internet, and Internet Plus.

In regard to industry structure, the bargaining power of suppliers and buyers are both weak. As for competitive forces, the fashion industry now is facing two powerful new entrants, high-tech enterprises and high-tech enterprises, and the competition from substitutes is low while the competition from existing rivals is quite strong. So Chanel is supposed to choose a combination of focus and differentiation as its competitive strategy.

According to the text topic analysis of data retrieved from the Facebook page of Chanel, it is clear that customers, including potential customers, reveal consistent high praise and brand loyalty to Chanel.

Besides, there are many opportunities for it. Chanel can benefit from e-commerce, and the rise of the middle class from some booming developing countries. Meanwhile, many challenges and problems exist. Because of the anti-corruption reforms in China, the demand for luxury goods is shrinking. Fake products and fast fashion brands are threating this company. In addition, many problems were exposed by many presses, which include the lawsuit of payroll, the leaving of executives and chef designer, as well as the first recognition of plagiarism.

Hence we suggestion many solutions with the assistance of IS to solve the problems, answer the challenges and realize the opportunities. First, the digital marketing tools can reduce the negative impacts and enhance the value of the brand by supporting CRM and online public relation which keep and attract more customers. Second, Chanel can use SMIS to contact with its raw material vendors and other suppliers to reduce the cost of negotiations, logistics and warehousing. Besides, the collaboration with fast fashion brands with high-tech vendors can be used to face the competition from them with heated topic and pioneering innovation. The cooperation may even avoid being plagiarized and reduce the effects of fakes. Further, we recommend ESN and an integrated collaboration system to improve cohesion among co-workers. Finally, ERP, the integrated of all departments, all regions and all single systems should be implement to enable Chanel totally embrace the trend of internet plus.