Gucci Case Summary

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In 2004, Poole announced his strategy of declaring that Gucci would double in size in seven years. He had mentions Sara’s strategy of getting new products more often instead of only four times a year. Once he mentioned Ezra, people were mad and thought that this would make the brand look cheaper. After implementing the strategy, Gucci Group had doubled in revenues in 2007, just three years later. Pole’s strategy is something called freedom within the frameworks. Freedom within the frameworks basically means that each CEO can have freedom to do what they ant with their sector but they must not do anything to destroy the DNA of the company.

With this being said, they must run things by Poole to ensure it is within the DNA of the company, and if it is, they can do it however they want. After Poole had made Lee CEO, Lee had decided to further decentralized the brand and reinforce the autonomy of Gucci regional offices. One of Lee’s first actions that he took to reinforce the autonomy of Gucci was to concentrate all of the designer responsibilities into the hands of one designer. He chose the designer Giant because in his opinion, “Giant was more of a worker bee than a celebrity.

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Gucci DNA is in her blood. She has an absolute vision about what Gucci was and what it is, and that belongs really to her. ” Lee made it so that the regional offices had the option to pick items freely from the new collections that they thought would work best in their stores. Gucci was having trouble accessing their customer information. They wondered if implementing a loyalty card would help improve their CRM systems. They were worried that customers would think that carrying a card loud be tacky and would thus decrease the value of their business.

Most of the time, loyalty cards end up subsidizing the people who buy the products anyway. One pro to implementing a loyalty card would be that Gucci would have more customer information in their CRM and that way could find better ways to advertise and market their brands to those people who only shop there a few times a year. One con to implementing the loyalty card is that customers think that it devalues the brand making it tacky. If I were Poole, I would implement some form of a CRM system to help better track customers.

A loyalty card may seem tacky but if the customer just had to give their phone number then maybe it wouldn’t seem so tacky and actually be beneficial to the Gucci Group. Freedom within the Frameworks benefits the group in many ways. It is not a set of rules that Coo’s have to follow and will get in trouble if they veer outside the lines a bit. This concept is more of a guidelines approach to things. The Coo’s must stay within the DNA of the company but has the freedom to do whatever they feel is best for their store as long as it does not devalue the company in any way.

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