Business Strategy

Porter's Five Forces:

Threat of Substitutes- Medium:

Even though Victoria Secret makes a lot of high quality clothes some people may think that their products are overpriced and would look for other suppliers to replace them. But most people would stay with their brand since they are heavily advertised and popularized by different influencers.

Supplier Bargaining Power- Low:

There are enough different suppliers for the materials that Victoria Secret uses that they can change suppliers at will.

Rivalry- High:

This should go hand in hand with threat of substitutes but there is a difference. Threat of substitutes talks about someone having the choice of buying a similar product from a different vendor while rivalry talks about how other companies would put pressure on another company to make a new product, lower their prices, etc. The reason this is high is that there are a few more high profile companies such as Victoria's Secret which makes high quality products for sometimes lower prices or makes a new product that Victoria Secret hasn't yet made.

Threat of New Entrants- Low:

The reason that this is low is because there are already many different companies that are dominating the field in fashion all together that it is hard to see a new face rise up. 

Customer Bargaining Power- Low:

The reason this is low is because Victoria Secret is a quality brand that is very popular and well known in the industry so they can set their own prices and customers can't really say anything since it's a "Victoria Secret" item which you can compare to Apple products where no matter what price Apple sets for their devices people will buy them

Business strategy:

There are three business strategies that Victoria’s Secret follows and they are: to captivate all female customers, unit stores with online shops and pay close attention to international markets. Each year Victoria's Secret hosts a worldwide fashion show to show off new products and showcase that year's staple piece. From 1995 to 2018, Victoria's Secret used the show to market its goods in high-profile settings. Models under contract to the company, known as Victoria's Secret Angels, were key participants at the event and are a key element to the brand. Victoria's Secret has become the only name that matters in lingerie. These fashion shows are what customers and employees look forward to each year to recap all that was sold within that year and it is a great marketing tool for the company.