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Kate Spade

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Bishan Nandy
HaiYang Yu
Pei-Chieh Huang
Xi Lin
Ashwin Kumar
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Business summary
Begun in 1993 by designer Kate Spade and her husband Andy, signature Kate spade bags were an instant success because of their uncomplicated design. Since then, the manufacturer has expanded into stationery, various functional bags (think diaper bags), and licensing -- with lines of homewards (sheets, tabletop items, and wallpaper), as well as beauty products, eyewear, and shoes. Women's items are sold under the Kate spade name while men's products carry the jack spade moniker. The company, which is owned by Liz Claiborne, distributes its products in Asia and sells them in the US through about 65 of its own shops and in upscale department stores.

Development Strategy
There are few major steps that the founders of Kate spade took to grow the business and improved the shareholders value. The business expansion strategies can be broadly subdivided into three segments: (a) forming the company and implementing the business plan; (b) positioning the product for continued growth in sales, and (c) building the brand equity and expanding the business.

Kate spade started with a group of self motivated people who put forth both financial and emotional support to form the business. The founders worked with no salary and 20% stake on the company for a prolonged period until the company started making significant profit. Unlike other early stage entrepreneurial businesses, the company focused more on building their brand equity rather than making huge investments on distribution channels or advertising and fancy showrooms. The founders of Kate spade were very conservative in terms of budget allocation to expand the business. The initial investment from the founding partners helped to bootstrap the company. The cost effective business model was essential to

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