Dolce & Gabbana SWOT Analysis

A SWOT analysis is a type of qualitative research used to explore the micro analysis of brand. It allows us to take a closer look to a brand and see what is good about the brand and what can be improved. I did a SWOT analysis on Dolce & Gabbana as part of my secondary research in order to get a more focused view on D&G and to perhaps help gather some recommendations for the brand.


Strengths

•  Strong brand image - Dolce & Gabbana have a strong brand image they are aware that they target an elite luxury market, who have continued to transcend through the fashion industry with their sleek, sophisticated and decadent clothing.
• Use of Influencers - Dolce & Gabbana continue to work and be supported by influencers and celebrities. They have collaborated on campaigns with influencer such as Luca Sabbat and Cameron Dallas, major models who are also working to change the societal views on plus sized women such as Ashley Graham and major artists like Cardi B.
• Range of Products - Dolce & Gabbana have a large range of products that they sell both online and in store. They not only sell women's, men's and children's clothing, but also accessories including shoes, bags, sunglasses etc, makeup and fragrances.
• Strong Connection to their Origins - Dolce & Gabbana keep a strong relationship with their deep Italian roots. This is an important part of their brand and references to Italy can be seen in many of their collections and campaigns. 

Weaknesses

• Increased Liabilities - Dolce & Gabbana's liabilities has continued to rise of the past three years, increasing by 176.8 million Euros from 2016 to 2017. Although having liabilities in companies is normal, too many liabilities can lead to financial hardships. 

• Controversies - Over the past number of years, Dolce & Gabbana have had many controversies that have led to backlash and bad publicity for the brand. Some of the controversies have included homophobic comments about same sex couples and calling IVF babies synthetic, racist comments about China after they released an insensitive advertisement targeting the major Chinese market and being accused of sexism due to some of their past campaigns being portrayed as gang rapes. All of these controversies have also lead to the loss of celebrity supporters and consumers. 

Opportunities 

• Expand target demographic - Dolce & Gabbana have an opportunity to expand and to reach new demographics, such as Millennials and Generation Z. These two groups are being exposed to luxury brands, this is mostly due to the rise of streetwear and athleisure which many luxury brands are starting to move to and which is often a fraction cheaper than the more luxury items. Dolce & Gabbana could try and break into this market with brands such as Balenciaga and Gucci in order to reach a younger demographic. 
• Expand their Geographic Markets - As well as trying to reach a new demographic, Dolce & Gabbana could try to access the Asian markets. The brand currently is mostly sold to western consumers, so their is a major opportunity to reach a new market.

Threats

• Competitors - One of the major threats for Dolce & Gabbana is their competitors. Brands such as Gucci, Dior, Balenciaga and Louis Vuitton are currently at the forefront of the luxury market and are targeting a large range on places and demographics. 
• The Rise of Streetwear - Dolce & Gabbana is known for their luxury and sophisticated clothing, yet this may not help due to the popularisation of streetwear and athleisure. With many luxury brands starting to move towards this to meet the demand, can this be one of the biggest threats to D&G?

References

Averkamp, H. Are liabilities always a bad thing? | AccountingCoach. Retrieved January, 23, 2019, from https://www.accountingcoach.com/blog/are-liabilities-bad

Bhasin, H. (2018). SWOT analysis of Dolce & Gabbana - Dolce & Gabbana SWOT analysis. Retrieved on January, 23, 2019 from https://www.marketing91.com/swot-analysis-of-dolce-gabbana/

Report Aziende. (n.d.). Total Liabilities of the Italian Luxury Fashion Company Dolce & Gabbana between 2014 and 2017 (in million euros) In Statista - The Statistic Portal. Retrieved January 23, 2019, from https://www-statista-com.hallam.idm.oclc.org/statistics/675327/total-liabilities-of-italian-company-dolce-and-gabbana/