Hello,

Can someone help me with these questions about Victoria Secret? Also, please let me know your opinion on my first report. I tried to be more detailed as possible.

1. Identify the company'sbusiness-level, corporate-level, and international strategies?
2. Include an assessment of the generic strategy the company is using in their business, the extent and relatedness of diversification, the modes (e.g., M&A, alliances, internal development) of implementing recent diversification initiatives, and the type of international strategy implemented in various global markets.
3. Use external and internal environment, corporate level strategy, business level strategy and build on analysis in the earlier report.

Thank you,

B

Victoria's Secret Analytical Report

Roy Raymond and Gaye Raymond founded the Victoria's Secret brand called Victoria's Secret on June 4, 1977, in Palo Alto, California. The Victorian monarch, Queen Victoria is credited with coining the term "Victoria's Secret" in honor of the company. Victoria's Secret is known for its sultry lingerie for women of all sizes and colors. For the past 45 years, the popularity of the brand name has increased throughout the world. Brand recognition grew in the twentieth century and has persisted for the last 45 years around the globe. Sultry lingerie in all shapes and sizes, as well as colors, is the trademark of the Victoria's Secret brand.

The mission of Victoria's Secret is to "give women with the sexiest, most flattering, and most appealing lingerie available on the market, that is passionate and sexual while being suitable," as stated on the company's website. When it comes to "intimate clothes," "liked and trusted" is what the company's mission statement states.Their website says the real value is found in the satisfaction that comes from creating distinctive women's underwear, which they describe as a "increased source of performance" that "enables development which benefits all of our communities."

Limited Brands saw an opportunity for growth and purchased Victoria's Secret locations, catalogs, and brand name for $1 million in 1982, where they surpassed sales for $7 million annually. The majority of the company's retail locations in the USA and worldwide can be found in shopping malls and shopping centers totaling 1070. However, during COVID-19, the company closed 25% of its retail stores, leaving 775 retail stores globally in 2021. In 2021 the company generated $844 million in profit and had total assets of $11.57 billion. More than 30,000 people are employed globally by the Victoria's Secret companies, including models, marketing strategists, employees at retail locations, and more.

Victoria's Secret is famous for its romantic and sensual lingerie, including the "Incredible bra," which was unveiled in a runaway during the 2013 Victoria's Secret Fashion Show. It's also renowned for its PINK, swimsuits, cosmetics, and scents, all of which are often seen at high-end retailers' yearly runaways, in addition to its "dream bras."

Michael E. Porter's five forces model is a tool for analyzing the competitive environment, particularly the power of firms in the industry to set prices and reduce costs. The five primary competitive factors are the threat of new entrants, buyers' bargaining power, suppliers' bargaining power, the threat of substitute products and services, and the intensity of rivalry among competitors in an industry.

One of the aspects of the five forces model is that of threat of new entrants. This concept revolves around how easy or difficult it is for a new business to enter the given industry that is being analyzed. The threat would be high if a particular industry is easily accessible for a company/ The converse is true if it is difficult for a company to enter said industry.The threat of new entrants in the lingerie industry is not particularly high. One of the more prominent reasons is the accessibility to high-quality materials. Victoria's Secret is known for having high-quality products, among other things. This is partially why their brand is synonymous with the lingerie industry. Their main "competitors" are Third Love and Adore Me. However, Victoria's Secret is undeniably a significant step up from those companies regarding brand recognition.

In addition, another key aspect is the threat of substitute products and services. The threat of substitutes products and services "limit the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge." This aspect is essential to look at because it's important to consider if the product and services the company is offering to consumers can easily be substituted for another product or service. This could be concerning because other companies may offer more attractive and lower-cost products. Questions to ask regarding the threat of substitutes are whether or not it is easy for consumers to switch to new products, what are some of the major substitutes, and what are the trends in the market share of the product and its substitutes.

Victoria's Secret does not suffer highly from the threat of substitutes because the products they offer are essential for women, and there aren't many substitutes available for these products. Many other industries may offer similar products in exchange for what Victoria's Secret has to offer; however, this company focuses primarily on quality products over cost sufficient with various styles to choose from, which puts them at a competitive advantage. Some of Victoria's Secret competitors regarding the threat of new substitutes can be other stores such as Aerie or Adore Me. However, Victoria's Secret follows a differentiation strategy where they sell differentiated high-quality products instead of something generic. Victoria's Secret also has a high brand image and customer loyalty, which attracts more customers buying into their products. This makes the threat of new substitutes weak because not many other industries can provide what Victoria's Secret has created over the years.

Buyer bargaining power is the customer's ability to drive the prices of a product or service, compel brands to improve quality, and nudge them to offer better customer service or support. Victoria's Secret buyer power is low because its buyers can't directly impact the price.

They are willing to pay for products. Victoria's Secret prides itself on customer satisfaction and offering high-quality products. Doing this can keep the buyer power low and the prices on the desired level. Most of the buyers are loyal to Victoria's Secret and the high quality of their products. Victoria's Secret keeps putting out new clothing styles and new lines of their products each season. Although keeping up with new trends, styles, and customers' desires can be challenging. This attracts buyers to keep on coming back, knowing that Victoria's Secret is always fresh and up to date.

Finding a substitute or switching to another brand would be difficult for Victoria's Secret customers. Most of the customers are loyal to Victoria's Secret because of the quality of their products. Since the prices at Victoria's Secret are high, the company makes sure to offer exceptionally high quality and optimal prices to keep buyer power low and reduce it even more. Loyalty programs are another tool Victoria's Secret uses to minimize buyer power and keep it down. Victoria's Secret rewards its customers for their money spent online or inside the store. Also, after customers spend a certain amount of money, the company offers free shipping and discounts. In addition, Victoria's Secret provides a reward credit card program. This way, clients are constantly being rewarded based on how much money they spend.

Unfortunately, more recently, due to issues with their leadership and COVID-19, Victoria's Secrets sales have declined. It is ultimately causing them to implement more deals, discounts, and reward options. However, this did not change the buyer's bargaining power. Victoria's Secret can focus on innovation and differentiation to attract more buyers. Product differentiation and quality of products are essential to buyers within the industry, and Victoria s Secret can attract many customers by focusing on these.

Victoria's Secret is a value-driven brand dedicated to producing high-quality and effective products. There is a strict policy on the materials they use and don't utilize. They are committed to acquiring man-made cellulosic fibers such as rayon, viscose, lyocell, and modal in an ethical manner. Suppliers are chosen based on their ability to adhere to ethical labor practices while meeting environmental and quality standards. Victoria's Secret solely works with two suppliers for their products: Lenzing AG and Aditya Birla Group. The bargaining power of suppliers is low because the company selects and controls the suppliers it works with. The suppliers have less price control and do not post a credible threat of forwarding integration.

Victoria's Secret main rivalries of sexy lingerie include: La Perla, Agent Provocateur, Adore Me, and True & Co, who are vying for the attention of women worldwide. Victoria's Secret has a strong brand recognition with loyal customers. Their in-store experience,strong brand awareness and customer loyalty is the company's key strength. Customers' in-store experience was the most important asset of the organization. Victoria's Secret has an impressive product selection that caters to a wider set of consumers. However, the weakness lies in the high pricing. They charge more than their competitors, which leads to customers shopping in a similar product line for a lower cost.

According to Michael Porter's five forces model, the industry is attractive as there isn't a fierce competition and isn't their main threat for leaving the industry. They have the resources to sustain a competitive advantage. The company is appealing to the major industries in which it competes, impacting economic performance and creating a highly competitive environment and advantage. Furthermore, in order for the company to continue to expand and develop, it must adhere to its fundamental values and brand image, which it has developed over the last 45 years. To attract new and retain existing customers in a competitive market, Victoria's Secret should create more unique and improved lingerie, as well as maintain a low-cost plan to achieve a competitive advantage.

Victoria's Secret is a brand name that people associate with attractive, sexy, and higher-end product lines ranging from lingerie to beauty products. This continues to attract customers worldwide, creating a highly competitive market among competitors. For the past 45 years, Victoria's Secret has had a remarkable creative journey. Customers who attend Victoria's Secret runway shows not only get to see the company's latest designs, but they also get to meet new people and keep up with those who have been loyal to the brand for years. The company demonstrated that stable leadership and innovative marketing strategies are still the most important factors to secure new customers while keeping loyal customers.

Works Cited

Fibers & Materials | Victoria's Secret & Co. https://www.victoriassecretandco.com/corporate-responsibility/product-information/policies/fibers-and-materials/.

Hanbury, Mary. "The Rise, Fall, and Comeback of Victoria's Secret, America's Biggest Lingerie Retailer." Business Insider, https://www.businessinsider.com/victorias-secret-rise-and-fall-history-2019-5.

Our Company | Victoria's Secret & Co. https://www.victoriassecretandco.com/our-company/overview/. Accessed 6 Mar. 2022.

Pro, EMBA. "Solved Porter 5 Forces: PrettySecrets.Com: Challenges of Selling Lingerie Online Analysis." EMBA Pro for Executive MBA Professionals, https://embapro.com/frontpage/porter5forcesanalysis/13802-lingerie-online.

Rozario, Kevin. "'From Sexy For A Few, To Sexy for All': Reinventing Victoria's Secret." Forbes, https://www.forbes.com/sites/kevinrozario/2021/05/20/from-sexy-for-a-few-to-sexy-for-all-reinventing-victorias-secret/.

"The Biggest Challenges for Lingerie Brands (& How to Overcome Them)." Patchworks, https://www.wearepatchworks.com/blogs/news/challenges-for-lingerie-brands.

Victoria's Secret - Statistics & Facts | Statista. https://www-statista-com.remote.baruch.cuny.edu/topics/4819/victoria-s-secret/#dossierKeyfigures.

https://digitalstrategies.tuck.dartmouth.edu/wp-content/uploads/2016/10/6-0014.pdf

https://www.youtube.com/watch?v=H2a3wgcmXPI

https://cb4.com/blog/strategies-for-victorias-secret/