SWOT Analysis of Balenciaga: Evaluating Competitive Advantages, Market Challenges, and Crisis Management in the Luxury Industry

Yaxuan Wang

doi:10.54254/2754-1169/2024.LD18182

Research Article

Open access

Published on 12 December 2024

Download pdf

Wang,Y. (2024). SWOT Analysis of Balenciaga: Evaluating Competitive Advantages, Market Challenges, and Crisis Management in the Luxury Industry. Advances in Economics, Management and Political Sciences,113,69-74.

Export citation

SWOT Analysis of Balenciaga: Evaluating Competitive Advantages, Market Challenges, and Crisis Management in the Luxury Industry

Yaxuan Wang *^,1,

¹ Rosedale Global High School, Tianjin, China

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/2024.LD18182

Abstract

The luxury industry is a highly competitive field that has become a part of people's lives. The development of luxury industry is one of the key research topics today. The research topic of this paper focuses on the luxury brand Balenciaga. The research method of this paper is SWOT analysis to explore Balenciaga's core competitive advantages, market challenges, development opportunities and existential threats. The significance of this study is to understand how Balenciaga develops and stands out in the fierce competition in the luxury market. This study introduces the brand history and market position of Balenciaga. In the analysis of the problem, the competitive advantages of Balenciaga are studied, such as the combination of design innovation and tradition. In addition, there are challenges, such as the damage of communication crisis to the brand. However, this paper examines opportunities for Balenciaga's development, such as the use of digital strategies. But there are threats, such as Balenciaga's highly controversial advertising, which has brought a crisis to the brand's reputation. The conclusion shows that these strategies are of great significance to the market management of the luxury industry and are of great value in academic research.

Keywords

Balenciaga, Luxury Industry, SWOT Analysis, Competitive Advantage, Crisis Management

View pdf

References

[1]. Cabigiosu, A., & Cabigiosu, A. (2020). A Comparative Analysis: Gucci, Saint Laurent, Balenciaga and Bottega Veneta. Digitalization in the Luxury Fashion Industry: Strategic Branding for Millennial Consumers, 203-236.

[2]. Catalan, M. (2022). More on the Balenciaga Case. Rev. Eletronica Direito Sociedade, 10, 11

[3]. Miller, L. E., & Victoria and Albert Museum (Londres, Royaume-Uni). (2017). Balenciaga: Shaping Fashion. V & A Publishing.

[4]. Piancatelli, C., Carbonare, P. M. D., & Cuadrado-García, M. (2020). Balenciaga: The Master of Haute Couture. The Artification of Luxury Fashion Brands: Synergies, Contaminations, and Hybridizations, 141-162.

[5]. Li, Y. (2023). Comparison of Marketing Methods and Strategies of Luxury Brands-Take Balenciaga and Louis Vuitton as Examples. In 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023) (pp. 245-251). Atlantis Press.

[6]. Chen, X. (2022). Research on the Advertising Strategies in Luxury Marketing. Highlights in Business, Economics and Management, 4, 41-48.

[7]. Zeng, Q. (2022). Analysis of the trend of brand leather goods consumption and design. Leather Science and Engineering, 32(6), 84-89.

[8]. Xu, M., & Nuangjamnong, C. (2022). Determinant Factors Influence the Purchase Intention through Balenciaga Handbags in the Luxury Product in China. International Research E-Journal on Business and Economics, 7(1), 30-43.

[9]. Afrasiyab, J. T. G., & Saleh, S. G. (2024). The role of marketing as a determining factor in the production and sale of fashion apparel. Scientific Collection «InterConf+», (45 (201)), 555-560.

[10]. Gárgoles, P., & Ambás, G. (2023). The Power of Consumers on Social Media: A Case Study of Balenciaga’s Crisis Communication. In International Conference on Fashion communication: between tradition and future digital developments (pp. 3-13). Cham: Springer Nature Switzerland.

[11]. Brownstein, E. (2024). The Art of Crisis Communication in the Fashion Industry: An Examination of Controversies and Responses by Leading Companies.

[12]. Miranda, R. (2023). Challenges and opportunities of branding after Covid-19. Social Brand Management in a Post Covid-19 Era, 39-49.

[13]. Balda, A. (2014). Simplification as the norm: a common ground for Chanel and Balenciaga. Datatèxtil, (30), 60-66.

[14]. Rangel, C., & López, B. (2022). Digital transformation in luxury brands: Challenges in an uncertain world. In Sustainable International Business Models in a Digitally Transforming World (pp. 222-239). Routledge.

[15]. Kniazeva, M., Aiello, G., Dasmi, C., Mazzoli, V., Nechaeva, O., & Syed, F. U. (2024). Why fashion brands enter the metaverse: Exploring the motivations of fast fashion and luxury fashion brands. Journal of Global Fashion Marketing, 15(1), 62-89.

Cite this article

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of ICFTBA 2024 Workshop: Human Capital Management in a Post-Covid World: Emerging Trends and Workplace Strategies

Conference website: https://2024.icftba.org/

ISBN：978-1-83558-639-6(Print) / 978-1-83558-640-2(Online)

Conference date: 4 December 2024

Editor：Ursula Faura-Martínez, An Nguyen

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.113

ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).