...MODULE TITLE: Strategic Management MODULE CODE: MAN4169M MODULE LEADER: Dr. Nikolaos Papageorgiadis DEADLINE FOR SUBMISSION: Tuesday, 30th April, 2013 TOPIC:Strategic Evaluation of Louis Vuitton STATEMENT OF AUTHENTICITY: I certify that this assignment is the result of my own work and does not exceed the word count noted below. PAGE COUNT: 24(Including Title Page) UB NUMBER:12017925 EXECUTIVE SUMMARY The personal luxury goods industry is one in which the luxury products created are goods of very high quality but are very expensive as a result of these high levels of quality. The customer range in this particular industry is usually of high net worth or high earners. Louis Vuitton is a French company that is one of the major producers of personal luxury products and as of recent data, is the industry leader in sales and revenues worldwide. At all times, their mission is to keep their values which is basically to provide refined quality products to the customers that they know can obviously afford to pay large amounts for these levels of quality. The company seeks to stick to their core values while remaining at the top of this particular industry and continue to make their high amounts of revenues and sales. The main objective of this report, is to advice the company on the factors that will possibly affect the company internally and externally before we use this to lead to a strategic plan of implementation for the company to attain its goal of remaining...
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...Table of Contents 1.0 CASE SUMMARY 1 2.0 PROBLEM STATEMENT 2 3.0 INDUSTRY ANALYSIS 3 3.1 Market Segmentation3 3.2 Target Audience3 3.3 Market Positioning4 3.4 Competitor Analysis5 4.0 COMPANY ANALYSIS 6 4.1 4P Analysis6 4.2 POD and POP Analysis10 4.3 Market Analysis10 4.4 SWOT Analysis12 4.5 PESTEL Analysis14 5.0 STRATEGIC ALTERNATIVES20 6.0 RECOMMENDATION23 7.0 ACTION PLAN24 8.0 CONTIGENCY PLAN28 9.0 REFERENCES28 1.0 CASE SUMMARY In recent years, modern customers are no longer acquiring shopping only for their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality...
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...a number of analysis tools were applied to the case study; they include Porter's 5 forces model and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis 10 Consumer behavior analysis 12 Recommendation 16 Conclusion 19 References 20 Appendixes 22 Appendix 1: For example 22 Appendix 2: Competition – Porter’s 5 forces analysis 23 Appendix 3: SWOT analysis of Louis Vuitton 28 Appendix 4: Case study - “Louis Vuitton in Japan” 29 ...
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...Unit Four Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jessica Rushing Professor: Dr. Andryce Zurick Date: May 18, 2015 Louis Vuitton in Japan Company Name: Louis Vuitton Topic of the Week: External and Global Environment Synopsis of the Situation As of 2009, the Japanese market accounted for 45 percent of all luxury goods sold globally (Pearce & Robinson, 2013, p 14-11). Louis Vuitton preemptively identified Japan as a location that would help boost sales and brand loyalty, opening its first store in Japan in 1977 (Pearce & Robinson, 2013, p 14-14). The brand is facing some challenges as it attempts to continue seeing growth in the Japanese market. These challenges include competition, reduced location product availability, and counterfeit products to name a few. Due to the fact this country currently accounts for a large percentage of luxury goods being sold, the competition is at an all time high. Louis Vuitton faces challenges while battling rivals such as Bulgari, Gucci, Coach, and similar companies. Competition in the marketplace is a strong component of any company’s external environment. According to our text, an external environment includes, “the factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes (Pearce & Robinson, 2013, p 87). In addition, Louis Vuitton has limited its targeted...
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...How to write a Good Value Chain Analysis The ability of a company to understand its own capabilities and the needs of the customers is crucial for a competitive strategy to be successful. The profitability of a firm depends to a large extent on how effectively it manages the various activities in the value chain, such that the price that the customer is willing to pay for the company’s products and services exceeds the relative costs of the value chain activities. It is important to bear in mind that while the value chain analysis may appear as simple in theory, it is quite time-consuming in practice. The logic and validity of the proven technique of value chain analysis has been rigorously tested, therefore, it does not require the user to have the same in-depth knowledge as the originator of the model (Macmillan et al, 2000). The first step in conducting the value chain analysis is to break down the key activities of the company according to the activities entailed in the framework. The next step is to assess the potential for adding value through the means of cost advantage or differentiation. Finally, it is imperative for the analyst to determine strategies that focus on those activities that would enable the company to attain sustainable competitive advantage. It is important for analysts to remember to use the value chain as a simple checklist to analyse each activity in the business with some depth (Pearson, 1999). The value chain should be analysed with the core competence...
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...Zhengyi Fang Marketing 350 Prof. Eguchi Aug 8th 2013 Marketing Analysis of Louis Vuitton Classic Handbags Louis Vuitton handbags and luggages are known and recognized throughout the world as the symbol of extreme quality, prestige and luxury. It is one of the biggest and most profitable luxury brands in the world right now. Mr. Vuitton established the company in 1854, and he designed and introduced flat-bottom luggage trunks made with trianon canvas. The flat-bottom luggage became the favorite of Empress Eugenie, and it has become the luggage choice for the wealthy. In 1867, the company won an award at the World Exposition in Paris and its influence spread out in France. In the following year, Louis Vuitton opened its first overseas store in London. In 1892, Louis Vuitton passed away, and his son George Vuitton took over the company and build the company into a worldwide corporation. In 1893, it entered the U.S market. In 1896, it launched its signature Monogram Canvas print, and secured worldwide patents for it. In this essay, I shall analyze the micro and macro environment of the Louis Vuitton classic handbags, and discuss the its marketing mix. Microenvironment It consists six actors, which are the company, suppliers, marketing intermediaries, customer markets, competitor, and public, these factors are close to the company and can affect the company’s ability to serve its customers. * The company The company itself is the first force in the company’s microenvironment...
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...Louis Vuitton Analysis Mary Askew American Public University Abstract Louis Vuitton is a brand of luxury items. It was started by an avid trunk makers and is now currently the top luxury brand provider for the tenth year straight. Louis Vuitton has been able to sustain its leadership in this competitive field by being innovative and garnering the best team the company can have. The leaders keep close tabs on the inner workings and control all aspects of products from manufacturing to sales.They are always looking to expand and increase market share. This paper will take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the LV...
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...success of the new item. By implementing all of these factors within a marketing plan, any company or business may strive to be boundlessly prosperous in its given field. Business Overview Louis Vuitton, the brand, and the person, share humble beginnings. At the tender age of sixteen, Louis Vuitton began working as an apprentice in Paris, France in 1837. In a period when transportation occurred primarily by trains, boats, and carriages, luggage underwent a significant amount of wear. It was important for individuals to protect their belongings while traveling great distances and throughout long journeys. It was during his apprenticeship that Vuitton began building customized boxes and trunks tailored to meet the needs of clients. Seventeen years later, Vuitton embarked on the beginning of his own business. In 1859, the Louis Vuitton workshop began with merely twenty total employees, expanding later to one hundred workers in 1900, and again in 1914 to include 225 persons (Louis Vuitton, 2015). During the early 20th century, travelers of all walks of life carried all valuables and possessions in trunks and boxes. Often in this period, the possessions of many voyagers were preyed upon by thieves and burglars. It is because of these robberies that Louis and his father Gorges Vuitton wanted to protect the precious possessions of their clients. Knowing that many times clients traveled with all of their worldly...
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...TABLE OF CONTENTS EXCUTIVE SUMMARY 2 1.0 INTRODUCTION 3 2.1 Economic Outcome of London 2012 4 2.2 Brazil- Getting Ready to Shine 4 2.3 Exploiting the Opportunity 4 2.3 Porters Five Force and PESTEL analysis 5 2.4 SWOT ANALYSIS OF THE BRAZILIAN LUXURY SECTOR 6 3.1 THE PLAN 7 3.2 OBJECTIVES OF THE PLAN 7 4.1 Justification Of The Plan 8 4.2 EXPERIENCE REALMS MODEL 9 4.2 THE BRAND IDENTITY PRISIM 11 5.1 PRICE AND PRODUCT 13 5.2 TIME FRAME AND LOCATIONS 14 5.3 IN-STORE EVENT 14 6.1 THE BUDGET 15 6.2 IMPLEMENTATION ISUUES 17 7.0 CONCLUSION 18 APPENDIX 1 19 APPENDIX 2 20 APPENDIX 3 ...
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...Company Profile Since 1854, Louis Vuitton has brought an uncompromising passion for luxury and quality to its customers. Today, the brand that began with the journey of its founder and namesake, Louis Vuitton, inspires the life journey of men and women around the world. From belts and wallets to the ready-to-wear collection to custom-made pieces, every handcrafted article emphasizes the company’s position as a leading international luxury brand. Case Study The objective given to the team was to design a men’s store concept for New York City that would leverage the history, craftsmanship, and innovation of the Louis Vuitton brand. The men’s business is currently one of the fastest growing for the company, and the men’s store concept was targeted to capitalize on this growth by connecting current and potential customers to more elements of the brand and enhancing Louis Vuitton’s long heritage and strong equity. Design, Business, and Marketing Solution In fulfilling the project objective, the team employed a range of business, marketing, and design strategies, including consumer research, competitor analysis, and concept visualization. Combined with extensive research about the company’s history and brand, the team reached a final proposal for a cutting-edge store concept and location in the heart of New York City’s shopping world. After considering both competitors’ city footprints and the shopping patterns of male customers—the target segment for the new store—the team determined...
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...October 14, 2013 Louis Vuitton Case Study 1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? Louis Vuitton’s business model in Japan is truly extraordinary in the way they use product, price, place, and promotion. The company was founded on producing products of the highest quality by Louis Vuitton Malletier in 1854. LV continuous effort to innovate their product through partnerships with local artist to create limited product lines and never deviate from the founding father’s vision is directly related to LV’s success. Louis Vuitton’s product image in the consumers mind is so important that they are taken huge measures in preventing counterfeiting of their product globally. The next portion of the LV’s business model is price. For a majority of company’s price is determined all by market demand and can fluctuate in order to stimulate or maintain consumer demand. For LV it is different, their products are priced unnecessarily high all the time despite what the market demand is. They do this because LV products are luxurious status symbols and in this sense offer absolute value out of a purchase. If the company prices their item any lower than what the current price is then the LV label will hold its social value. LV’s choice of place is unique because they only sell from a very small number of stores of which are mostly owned by the company. This is unique because traditionally an increase and sales can directly...
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...Louis Vuitton is the world’s biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer...
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...ENVIRONMENT ANALYSES 3. Global/Regional economic environment Purpose of analysis: The economic environment consists of economic factors that affect consumer purchasing power and spending pattern. The economic environment can offer both opportunities and threats. No company can avoid the influence of fluctuations in the global economy. And when you're in a developing market, the understanding of the economy is essential. Some elements of the economic environment (The divide between rich and poor purchasing power differences in social class, the market area, the stage of the economic cycle, the volatility of prices of some items such as gasoline, oil, gold) directly affect the purchasing power and consumer tastes, which determines the business results of the company. Changes and effects: * Opportunities: Living up to the world is big opportunity for LV. An increase in the wealthy class can lead to an increase in the ability to pay for items worth far as Louis Vuitton wholesale. For developing countries, previously, LV is a luxury item and overly almost can rarely afford. In Vietnam, the first store opened in 1997 is challenging and adventurous with LV. But back here in 2005, Vietnam had LV is developing very fast. Vietnam's economy is booming. Vietnam Consumers spend money more and more for the product on the essential. They enjoy life, travel overseas, go to theaters and fancy restaurants. The country has now opened the door, people know more about the fashion trends...
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...Positioning of Louis Vuitton Company on the Digital World Students Name Institute Affiliation Date ABSTRACT 1. The study utilizes an investigative approach to finding out the positioning of the luxury brand in the digital world; a case of Louis Vuitton Company. Louis Vuitton is one of the best luxury brands in the market with a worth estimate of $24.7 billion. Many luxury brands have not bought the idea of going online and utilizing the digital platform in marketing their products. Nowadays it is very crucial and as well relevant for any luxury brand to go digital. With the world’s economic changes, people have revised their spending and diverted to a rather more relevant daily survival practices. In such a scenario, Luxury brands need to do an aggressive marketing and making their presence be felt all over the world. The technological advancements in the business sector are playing a bigger role rather. The digital platform has been in use for decades now with many business sectors going online. It is noted that as many business sectors would like to venture in the e-commerce, many luxury brands haven’t bought the same idea. Luxury brand companies have the notion that the digital marketing is made for small and middle-level range of commodities. In the year 2014, only three luxury brands gained their strength in the market with Louis Vuitton taking the lead. Therefore, we ask this question, what makes Louis Vuitton take the lead in the market in this transforming technological...
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...http://hwcampus.com/shop/busn620-weeks-assignments-latest-2016/ BUSN620 Week 1 Assignment Title: Week 1 Due Date: End of Week 1 1. Read weekly announcement 2. Participate in the weekly forum. 3. Review weekly assignments in the syllabus. 4. Please complete the following for your week 1 written assignment: Read Case #16- BMW of North America and answer the following questions (each question a subsection): 1. What is fueling BMW's Growth? 2. How is BMW Doing in the U.S? Compare the following 3 years (2012, 2013, & 2014) in terms of annual revenue, car sales, gross margins and end year stock sales (outside research required). 3. Is the "Dream It. Build It" program a sustainable advantage in the long term? Do you see any room for further improvement? (link to other companies to add depth; i.e. Ikea, etc.) 4. Do you think customers really need "millions of combinations" for their car? Can they be happy with available standard options? What are the downsides of mass customization? 5. How does this case study link to the topics presented in Chapter 1, Chapter 2 & Chapter 3? 6. submit your responses to the Weekly Assignment Folder: Additional resources for Case Study: • https://www.youtube.com/watch?v=8Ddq6O_QAz0 • http://www.anthonymonahan.com/BMW-Dream-It-Build-It-Drive-It Post/submit homework to the assignment folder for grading. Make sure you provide substantive graduate level answers. Review examples in resource section, grading rubric and APA guide prior to final...
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