Gucci case Essay Example | Topics and Well Written Essays - 500 words

Gucci case - Essay Example To enable Gucci regain its position in the market, Domencio De Sole – Gucci’s president and CEO lead and Tom Ford – Gucci’s creative director combined their individual talents. Eventually, the company started selling its shares to the public market. Since Gucci was financially performing well at the time the company announced its initial public offering; well-known companies such as: LVMH and PPR were fighting over who gets the biggest share in Gucci. The problem with selling the company’s shares to the public market is the fact that shareholders who have the highest percentage of Another problem with going into public market is related to its vulnerability to the U.S. economic performance including financial crisis that may occur around the world. Once the economy becomes unstable, there is a huge possibility that the stock value of company shares will go down. Throughout Gucci’s success in the global market, the company heavily relied on Ford without training other designers with regards to Gucci’s fashion ideas and its target market. The absence of having well-trained and competitive designers could place the company in danger as soon as Ford decided to leave the company. Aggressively selling Gucci’s shares in the stock market without controlling the number of shares issued in the public market may cause the company-owner(s) to lose their power to manage the business operations of the company. In order to become a conglomerate multi-branded global company, Gucci should have entered into a business partnership or joint-venture with other related company instead of heavily relying on the selling of the company’s shares. competitive young designers. Through this type of competition, the company can identify the unique talents of each young designer. To win a long-term commitment from selected designers, Gucci could negotiate the packages and benefits which will be given to them in exchange for their service. With