ABSTRACT
This chapter covers the business strategy, or as often called competitive strategy. In any case, the most successful luxury firms in the personal luxury arena are consistent in two things, excellent price discipline and no store discounts. It was not standard back then for a luxury firm to own the point-of-sale, and the perception was that the benefits of controlling the experience would never compensate for the cost involved in DOS. Therefore, luxury firms must review their whole source of extraordinariness to ensure consistency between its source and how it is developed in the market. It is frequent to observe luxury firms entering into trouble with good creative skills, but lacking the managerial discipline to transfer that creativity into a sustainable business. It has depicted the typical face difficulties that luxury firms face, both at the formulation and implementation level.
