Chanel and the Way to Success Essay

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Chanel is arguably one of the most important and influential names in the fashion industry. Specializing in clothing and accessories, the company was formed way back in the beginning of the 20th century by Gabrielle Chanel, a designer from Paris who changed the world of fashion.

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The start of the business was very usual; the recognizable brand had grown from a small shop in the downtown of Paris which introduced Chanel to the market which was not very hard to capture due to the lack of competition. Chanel’s success is mostly dependent on the basics of management because management concepts were not widely practiced in early twentieth century.

Planning and organizing were the main approaches implemented by Gabrielle Chanel to the business; she was aware of the strategies and benefits of their application in practice. Planning included an outline of the market-gaining process which was based on a well-thought strategy to start from the bottom and to investigate the market.

One of the main results of the analysis concerned the high demand for women’s clothes as many of the French gentlemen were spending a fortune on their mistresses. The information about the preferences and tendencies in the market gave Chanel a clear idea of what potential customers would be interested in regarding the stylish fashion items produced under Chanel brand.

Another managerial concept was implemented when Chanel developed the first store and was ready to launch the second one into operation. The original plan intended the second store for different types of clothes and accessories displayed in it; as such, good organizational skills were required for running the business and Chanel had those in her set of management approaches.

Organization was also required when Chanel made agreements and went into partnerships to sustain external pressure from competitors, changing conditions of the market, a number of new rivals, and suppliers.

Different conflicts influenced a number of industries as well as fashion business; the World War was one of the many factors that collapsed Chanel in the mid 1900s but did not prevent it from becoming a successful brand. As Gabrielle Chanel was a great leader, she sustained all the pressure by making wise moves like signing a deal as per which she was paid 2% of royalty on all the products manufactured under the brand name of Chanel. Gabrielle Chanel was running the business on partnership basis with Pierre Wertheimer.

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The war put serious damage to the business; it could be renewed only after the entire decade passed. Renovation of the company’s operation was also based on the reconstruction of national economy that enabled customers recommence their buying habits.

The post-war period made some changes in the share of market Chanel occupied before the war because the bigger segment belonged to Christian Dior and his fashion house. Leading, controlling, and coordination became integral part of Chanel’s management strategy to gain the market from the very beginning and compete with larger brands. Pierre Wertheimer provided financial support as Gabrielle Chanel asked him for it as well as all sort of help to recapture the market from Dior.

A great gap still existed in the market as the designer jewelry, watches, and signature suits were not offered to the market at large. Chanel took some measures to successfully gain a significant market share; to draw attention of the customers, Chanel had to collaborate with well-known designers who brought extraordinary ideas into the brand.

Over a considerable period, Chanel used different marketing tactics and leadership styles to sustain success; one of the tactics was aimed at signing the celebrities to represent the Chanel products. Even though, Gabrielle Chanel died in 1971 her legacy remains and the company stands among the most successful in the fashion industry.

Works Cited

Drucker, Peter F. Innovation and Entrepreneurship: Practice and Principles. New York: Harper Business, 1993.

Schein, Edgar H. Organizational Culture and Leadership. New York: Jossey-Bass Publishers, 1997.

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IvyPanda. (2018, December 27). Chanel and the Way to Success. https://ivypanda.com/essays/chanel-and-the-way-to-success/

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"Chanel and the Way to Success." IvyPanda, 27 Dec. 2018, ivypanda.com/essays/chanel-and-the-way-to-success/.

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IvyPanda. (2018) 'Chanel and the Way to Success'. 27 December.

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IvyPanda. 2018. "Chanel and the Way to Success." December 27, 2018. https://ivypanda.com/essays/chanel-and-the-way-to-success/.

1. IvyPanda. "Chanel and the Way to Success." December 27, 2018. https://ivypanda.com/essays/chanel-and-the-way-to-success/.


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IvyPanda. "Chanel and the Way to Success." December 27, 2018. https://ivypanda.com/essays/chanel-and-the-way-to-success/.

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