Description
After experiencing impressive growth, El Ganso brings LVMH on board as a strategic partner in a move that will help the Spanish clothing group tackle several significant challenges it's facing. This case discusses how the deal for L Capital to take a stake in El Ganso's parent company was forged, the aspects of the alliance with LVMH that were most significant, the elements of a new strategic plan developed by the company, and the changes made to its expansion model and the management of the well-known brand. It also outlines the approach to strengthening the marketing plan and the characteristic design of the brand, and how El Ganso's leaders deal with the challenges of maintaining the brand's culture and growing its online business.
Learning Objective
Discussion can focus on the desirability of bringing a partner (LVMH) on board and the consequences of taking this step, and on appraisal of the challenges facing the brand from a strategic point of view (e-commerce, design, marketing).
Points that can be discussed include the new strategic plan, in particular, whether the new approach to international expansion is the most appropriate one: gradual outward expansion (the "oil stain" strategy) based on shops within shops versus own stores in good locations; how different strategies affect the rate of expansion; whether the franchise model should be reconsidered, and other related issues.
The case can be used on programs related to entrepreneurship, decision analysis or strategic management.