Over three decades of Oscar de la Renta (ODLR) had established itself as one of the leading luxury brands in America. Its mainstay business has always been producing and selling high-priced, couture / ready-to-wear luxury goods. Now, in September 2003, there was a number of critical strategic decisions. Firstly, it should, as the business while maintaining its luxury brand? It should be in the inexpensive clothing segment and unserved customer segments such as the Hispanic market, diversify w … Read more »

Over three decades of Oscar de la Renta (ODLR) had established itself as one of the leading luxury brands in America. Its mainstay business has always been producing and selling high-priced, couture / ready-to-wear luxury goods. Now, in September 2003, there was a number of critical strategic decisions. Firstly, it should, as the business while maintaining its luxury brand? It should be in the inexpensive clothing segment and unserved customer segments such as the Hispanic market, where it had a strong appeal of the brand to diversify but negligible presence? Second, as a family, as it could effectively against increasingly competitive, publicly funded, luxury goods conglomerates? And, perhaps, as de la Renta, the company’s founder and chief designer since inception and now 71 years old, effectively the company prepare for the future? Describes the company’s business and underlines the key tensions: expanding the scope of the luxury brand, licensing or pursuing organic growth strategies, and compete against state-owned corporations. Including color exhibits.
To maximize their effectiveness, color cases should be printed in color.
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Samhita Jayanti
Bharat N. Anand
Source: Harvard Business School
27 pages.
Release date: 01 March 2004. Prod #: 704490-PDF-ENG
Oscar de la Renta HBR case solution