×




Christian Dior (CHDRF) SWOT Analysis / TOWS Matrix / MBA Resources

Introduction to SWOT Analysis

SWOT Analysis / TOWS Matrix for Christian Dior (United States)


Based on various researches at Oak Spring University , Christian Dior is operating in a macro-environment that has been destablized by – supply chains are disrupted by pandemic , digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, technology disruption, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing commodity prices, etc



12 Hrs

$59.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

24 Hrs

$49.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now

48 Hrs

$39.99
per Page
  • 100% Plagiarism Free
  • On Time Delivery | 27x7
  • PayPal Secure
  • 300 Words / Page
  • Buy Now







Introduction to SWOT Analysis of Christian Dior


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University, we believe that Christian Dior can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Christian Dior, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Christian Dior operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Christian Dior can be done for the following purposes –
1. Strategic planning of Christian Dior
2. Improving business portfolio management of Christian Dior
3. Assessing feasibility of the new initiative in United States
4. Making a Apparel/Accessories sector specific business decision
5. Set goals for the organization
6. Organizational restructuring of Christian Dior




Strengths of Christian Dior | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Christian Dior are -

Sustainable margins compare to other players in Apparel/Accessories industry

– Christian Dior has clearly differentiated products in the market place. This has enabled Christian Dior to fetch slight price premium compare to the competitors in the Apparel/Accessories industry. The sustainable margins have also helped Christian Dior to invest into research and development (R&D) and innovation.

Organizational Resilience of Christian Dior

– The covid-19 pandemic has put organizational resilience at the centre of everthing Christian Dior does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Superior customer experience

– The customer experience strategy of Christian Dior in Apparel/Accessories industry is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Cross disciplinary teams

– Horizontal connected teams at the Christian Dior are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Training and development

– Christian Dior has one of the best training and development program in Consumer Cyclical industry. The effectiveness of the training programs can be measured in – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

Ability to lead change in Apparel/Accessories

– Christian Dior is one of the leading players in the Apparel/Accessories industry in United States. Over the years it has not only transformed the business landscape in the Apparel/Accessories industry in United States but also across the existing markets. The ability to lead change has enabled Christian Dior in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Analytics focus

– Christian Dior is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the Apparel/Accessories industry. The technology infrastructure of United States is also helping it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

High switching costs

– The high switching costs that Christian Dior has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Low bargaining power of suppliers

– Suppliers of Christian Dior in the Consumer Cyclical sector have low bargaining power. Christian Dior has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Christian Dior to manage not only supply disruptions but also source products at highly competitive prices.

Innovation driven organization

– Christian Dior is one of the most innovative firm in Apparel/Accessories sector.

Effective Research and Development (R&D)

– Christian Dior has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in – Christian Dior staying ahead in the Apparel/Accessories industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Successful track record of launching new products

– Christian Dior has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Christian Dior has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.






Weaknesses of Christian Dior | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Christian Dior are -

High operating costs

– Compare to the competitors, Christian Dior has high operating costs in the Apparel/Accessories industry. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Christian Dior lucrative customers.

Interest costs

– Compare to the competition, Christian Dior has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Employees’ less understanding of Christian Dior strategy

– From the outside it seems that the employees of Christian Dior don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Ability to respond to the competition

– As the decision making is very deliberative at Christian Dior, in the dynamic environment of Apparel/Accessories industry it has struggled to respond to the nimble upstart competition. Christian Dior has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Christian Dior supply chain. Even after few cautionary changes, Christian Dior is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Christian Dior vulnerable to further global disruptions in South East Asia.

Capital Spending Reduction

– Even during the low interest decade, Christian Dior has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the Apparel/Accessories industry using digital technology.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Christian Dior is slow explore the new channels of communication. These new channels of communication can help Christian Dior to provide better information regarding Apparel/Accessories products and services. It can also build an online community to further reach out to potential customers.

High dependence on Christian Dior ‘s star products

– The top 2 products and services of Christian Dior still accounts for major business revenue. This dependence on star products in Apparel/Accessories industry has resulted into insufficient focus on developing new products, even though Christian Dior has relatively successful track record of launching new products.

High bargaining power of channel partners in Apparel/Accessories industry

– because of the regulatory requirements in United States, Christian Dior is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the Apparel/Accessories industry.

Need for greater diversity

– Christian Dior has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.

High cash cycle compare to competitors

Christian Dior has a high cash cycle compare to other players in the Apparel/Accessories industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.




Christian Dior Opportunities | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities of Christian Dior are -

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Christian Dior can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help Christian Dior to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Building a culture of innovation

– managers at Christian Dior can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Apparel/Accessories industry.

Leveraging digital technologies

– Christian Dior can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Christian Dior is facing challenges because of the dominance of functional experts in the organization. Christian Dior can utilize new technology in the field of Apparel/Accessories industry to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Low interest rates

– Even though inflation is raising its head in most developed economies, Christian Dior can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Use of Bitcoin and other crypto currencies for transactions in Apparel/Accessories industry

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Christian Dior in the Apparel/Accessories industry. Now Christian Dior can target international markets with far fewer capital restrictions requirements than the existing system.

Better consumer reach

– The expansion of the 5G network will help Christian Dior to increase its market reach. Christian Dior will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Using analytics as competitive advantage

– Christian Dior has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in Apparel/Accessories sector. This continuous investment in analytics has enabled Christian Dior to build a competitive advantage using analytics. The analytics driven competitive advantage can help Christian Dior to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Creating value in data economy

– The success of analytics program of Christian Dior has opened avenues for new revenue streams for the organization in Apparel/Accessories industry. This can help Christian Dior to build a more holistic ecosystem for Christian Dior products in the Apparel/Accessories industry by providing – data insight services, data privacy related products, data based consulting services, etc.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Christian Dior can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Christian Dior can use these opportunities to build new business models that can help the communities that Christian Dior operates in. Secondly it can use opportunities from government spending in Apparel/Accessories sector.

Changes in consumer behavior post Covid-19

– consumer behavior has changed in the Apparel/Accessories industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Christian Dior can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Christian Dior can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Manufacturing automation

– Christian Dior can use the latest technology developments to improve its manufacturing and designing process in Apparel/Accessories sector. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.




Threats Christian Dior External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats of Christian Dior are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Christian Dior can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate Christian Dior prominent markets.

Technology acceleration in Forth Industrial Revolution

– Christian Dior has witnessed rapid integration of technology during Covid-19 in the Apparel/Accessories industry. As one of the leading players in the industry, Christian Dior needs to keep up with the evolution of technology in the Apparel/Accessories sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Christian Dior needs to understand the core reasons impacting the Apparel/Accessories industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Christian Dior high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Consumer confidence and its impact on Christian Dior demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in Apparel/Accessories industry and other sectors.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Christian Dior business can come under increasing regulations regarding data privacy, data security, etc.

Environmental challenges

– Christian Dior needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Christian Dior can take advantage of this fund but it will also bring new competitors in the Apparel/Accessories industry.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry to Apparel/Accessories industry are lowering. It can presents Christian Dior with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the Apparel/Accessories sector.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, Christian Dior may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Apparel/Accessories sector.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Christian Dior in Apparel/Accessories industry. The Apparel/Accessories industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Increasing wage structure of Christian Dior

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Christian Dior.

Shortening product life cycle

– it is one of the major threat that Christian Dior is facing in Apparel/Accessories sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Regulatory challenges

– Christian Dior needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Apparel/Accessories industry regulations.




Weighted SWOT Analysis of Christian Dior Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers at Christian Dior needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of Christian Dior is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of Christian Dior is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Christian Dior to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Christian Dior needs to make to build a sustainable competitive advantage.



--- ---

Rolfes Holdings Ltd SWOT Analysis / TOWS Matrix

Basic Materials , Chemical Manufacturing


Aurionpro Solutions Ltd SWOT Analysis / TOWS Matrix

Technology , Software & Programming


Vita Group SWOT Analysis / TOWS Matrix

Services , Retail (Technology)


Next Mediaworks Ltd SWOT Analysis / TOWS Matrix

Services , Broadcasting & Cable TV


Diodes SWOT Analysis / TOWS Matrix

Technology , Semiconductors


Astec Lifesciences Ltd SWOT Analysis / TOWS Matrix

Healthcare , Biotechnology & Drugs


Beautiful China SWOT Analysis / TOWS Matrix

Technology , Computer Peripherals


DNA Biomed Solns SWOT Analysis / TOWS Matrix

Healthcare , Biotechnology & Drugs


Dongil Metal SWOT Analysis / TOWS Matrix

Basic Materials , Misc. Fabricated Products


Lancaster Colony SWOT Analysis / TOWS Matrix

Consumer/Non-Cyclical , Food Processing