(Kimberly Andrade Fashion House)

Kimberly Andrade fashion house case study .

Kimberly Andrade is a fashion house specialized in clothing design. Ms. Andrade, the founder, was Mexican-American, but educated in France and trained in a traditional Parisian fashion house. Her firm creates original outfits and apparels based on ethnic motives inspired by indigenous cultures in Latin America. The brand markets women's haute couture and ready-to-wear products. In addition to sketching designs, Andrade Fashion also selects fabrics and patterns, and gives instructions on how to make the products it designs. The firm supplies the top end of the market and sells primarily through luxury boutiques throughout the U.S. and Mexico.

Historically, the company has relied in Fashion Trade Shows to increase brand awareness and strengthen relationships with key distributors and retailers. Competitive pressures in the value chain have considerably diminished profit margins, whereas fixed cost related to office overhead and salaries of new talented designers have doubled in the last decade as the result of an organic growth. Revenues are stable since the recession crisis and the forecast of future demand is highly uncertain in face of increasing international competition.

Lindsay Clark, the Business Manager who took control of the firm, has recently been approached by Los Tacos to accept a commission to design uniforms for their employees. Los Tacos is a new US/Mexican casual dining restaurant chain. It serves moderately priced food in a casual atmosphere. Differently from fast food restaurants like Taco Bell, Los Tacos provide table service and it is highly dependent on the waitress to generate an inviting atmosphere so that clients are motivated to eat in-store. Los Tacos is trying to develop a more sophisticated image and sees a potential alliance with Andrade Fashion House as helping to achieve this upgrade in social image. This would be very profitable contract to Andrade Fashion and could also lead to an expansion of its clientele base.

Ms. Clark as a business executive is interested in generating financial resources to leverage the growth of the firm in face of increasing managerial difficulties to sustain the original vision of the founder. She is very concerned that the firm's prestigious image might be damaged by the association with a restaurant chain. Since the death of the founder, Andrade Fashion House has relied in the talent of a small team of ambitious designers. Clark has had a difficult relationship with the creative director and is concerned that she will be unsupportive to this diversification opportunity.

how to help Ms. Clark who has hired your team as consultants.

What do you see as the central problem? Write in one sentence the core strategic problem faced by the firm and its potential cause(s)

What solutions would you suggest for Lindsay Clark? (list as many options as possible)

Identify your best solution (or combination of solutions). Elaborate and justify your recommendation