Strategic Management and Sustainability in Luxury Companies: The IWC Case

E-ISSN： 2051-4700|2013|52|36-54

ISSN： 1470-5001

Source： The Journal of Corporate Citizenship, Vol.2013, Iss.52, 2013-12, pp. : 36-54

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Abstract

Only pretty recently has sustainability started to be considered an integral part of strategic management. The so-called sustainable companies are those corporations where social, environmental and financial performances are reinforcing each other. For luxury companies, a well-designed and executed sustainability strategy can reinforce their brand value and enhance their competitiveness in the symbolic competition. The paper moves from the analysis of the distinctive elements of four successful cases, PPR, Richemont, LVMH and Marriott, to identify strategic archetypes of successful implementation of sustainable-focused strategies. An in-depth review of the IWC case is presented as an exemplification of best practices in incorporating sustainability into strategic management. In the last part of the paper, we do provide some guidelines for top managers and CEOs of luxury businesses to better incorporate the shared value approach in their strategies.