...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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...Develop an argument supporting the importance of a strategic plan for the success of the defined business. It is true to say that only through a proactive employment of strategic planning and implementation that a company can differentiate itself from the rest of the competition, as well as fostering strong brand awareness and recognition. Indeed, thanks to its organizational values, clear strategic mission and vision, plus its brilliant and flexible planning, a company like Louis Vuitton (LV) could manage to craft and maintain a highly recognized brand for more than 150 years. In fact, its logo is internationally recognized as an icon of style and exclusivity. The commitment of the company to “absolute quality” made its customers adopt a “Louis Vuitton or nothing” mindset rendering its comparison with the rest of the competition obsolete. It was named the most valuable fashion brand for seven years in a row throughout 2006 to 2012. Currently, Louis Vuitton brand is worth more than Rolex, Tiffany, Fendy, Cartier, and Chanel combined. (Soegaard, 2011) In the fashion industry, crafting a successful strategic plan means the difference between success and failure. In a constantly changing and highly competitive environment, fashion companies are in a never-ending struggle to distinguish their brands from others and create ways to attract incredibly demanding customers. With that in mind, Louis Vuitton has realized the necessity of building a solid business culture that clearly...
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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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...SUNDERLAND UGB-202: Introduction to strategic management Course Work TITLE: Company profile COURSE NAME: BA (HONS) BUSINESS MANAGEMENT INTAKE: 14th FEBRUARY 2011 SEMESTER1 Level 2(February TO May 2012) MODULE LEADER’S NAME: LECTURER NAME: Ms. Malathi NAME: Oumoul Khairy Barry 109115296/1 Company profile: As it was required in class I’ve chosen a firm in the clothing or textile manufacturing according to the UK standard, which is Louis Vuitton or Moet Hennessy Louis Vuitton SA (LVHM). Louis Vuitton is a division of holding company, founded in 1854 by Louis Vuitton its self. The label is based in Paris, France. The key people in the company are Jordi constans (Chairman and CEO), Marc Jacobs (Art Director), and Antoine Arnault (Director of communication). The company is well known for its LV monogram, which is featured on most of its products. They are famous in producing luxury goods (ready-to-wear, shoes, watches, jewelry, accessories, sunglasses, and books), LV is a retailer industry. By 1989 Louis Vuitton came to operate 130 stores worldwide, the largest and most successful LV store is located in Paris (Champs Elysees). The most famous products of the manufacture are their bags and wallet, which attract mostly women. As for any firm Louis Vuitton has many competitor but the strongest one are: Prada, Hermes, Gucci, and Coach. PRADA has been looking to copy the Vuitton expansion strategy and that is to...
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...Luxury Brand Management Case of Louis Vuitton 1. Introduction Louis Vuitton is a French fashion house founded in 1854 by Louis Vuitton. LV is mostly famous for its high-class leather bags and travelling trunks. It is also known as Louis Vuitton Moet Hennessy (LVMH) after merger with leading manufacturer of champagne and cognac, Moët & Chandon and Hennessy, in 1987. Louis Vuitton is one of the world most valuable luxury brands with the brand value of $29.9 billion according to the Forbes magazines listing November 2014. Quality craftsmanship, heritage and history are key factors of success for luxury brands like Louis Vuitton. Louis Vuitton has been growing fast due to increasing demand in China. Chinese consumers have quickly risen among the world’s biggest consumers of luxury product and the growth doesn’t seem to end. LV has become extremely popular brand among the fashion conscious Chinese and Japanese consumers. Consumer surveys reveal that it is among the top 5 luxury brands in both countries. The brand is clearly visible in all of the main cities all around the world as it is very easy to find several girls carrying the LV bags, wallets, and others accessories. China is the most essential market for LV, but it still has to concentrate on keeping sales up also in other main markets like Japan. The rise of LV in China and other markets is not a coincidence. It has been achieved through extensive strategic approaches and extraordinary...
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...challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, the second largest economy in the world. The case illustrates the business strategy of Louis Vuitton in an important market, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton’s most profitable market, representing almost half of its profits, but it seems that the global economic crisis has resulted in a decline in sales. Other European brands in the luxury and fashion sectors have also been generating one third of their profits from Japan. Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market, taking into account consumer behaviour patterns. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works. Louis Vuitton may be French, but Japan has become a land full of Louis Vuitton lovers. Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton’s successful...
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...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 demographic to individuals...
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...STUDIES 2009 NO.45 Luxury Brand Strategy of Louis Vuitton - Details of Marketing Principles by Shin'ya Nagasawa* Abstract: By systematicallybreaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word "brand" to refer to the likes of Coca-Cola and McDonald's, there is a vast gulf between these brands and the luxury brands we explored in the previous book. In researchers' brand management theories, one rarely finds mention of representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although * Shin'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School...
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...Finale LVMH History A world leader in luxury, LVMH Moët Hennessy - Louis Vuitton possesses a unique portfolio of over 60 prestigious brands, almost 100,000 employees and more than 3000 stores around the world. The Group is active in five different sectors: ►Wines & Spirits ►Fashion & Leather Goods ►Perfumes & Cosmetics ►Watches & Jewelry ►Selective retailing In June 1987, a $4 billion merger was effected between Louis Vuitton with Möet-Hennessy, which allowed Louis Vuitton to expand its investments in the luxury business, while saving Möet-Hennessy from the threat of takeover. Moreover, the merger respected the autonomy of each company over its own management and subsidiaries. As Möet-Hennessy was three times the size of Louis Vuitton, its president, Alain Chevalier, was named chairperson of the new holding company, Möet-Hennessy Louis Vuitton (LVMH), and Racamier became executive vice-president. Massive disagreements and feuding followed, however, as management at Louis Vuitton believed that Möet-Hennessy was trying to absorb its operations. The 60 percent ownership that Racamier and the Vuitton family had held in Louis Vuitton became a mere 17 percent share of LVMH. After several disputes and legal battles between Racamier and Chevalier over the running of the conglomerate, Racamier invited the young property developer and financial engineer Bernard Arnault to acquire stock in the company. Hoping to consolidate his position within LVMH with...
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...Interact with Society: An investigation into the performance of Louis Vuitton Founded in 1854, Louis Vuitton Moët Hennessy (LVMH) had become the world's largest luxury fashion house brand group and manage to gain sales revenue of 20,320 million euros in 2010 to 23, 659 million Euro in 2011 and 28, 103 million Euro in 2012 (Jin, 2012). Nowadays in business world, the survivability of business depends on how it interact with the society. The way of a company behave toward the society and environment is the key for a company to achieve profitability and maintain good reputation as small action give a big impact (Hartman, 2005). In this case, a company good intention will frequently shadowed by it bad steps in damaging society even it is unintentionally done. In contrast for that, Louis Vuitton had practiced their good intention by launching environmental department in 1992 in order to preserve the nature thus helping Louis Vuitton to produce high quality product (LVMH launches its own Green Week, 2012). Behind the scene, Louis Vuitton also increases their carbon emission by 25% in 2012 while manage to increases their revenue by 19% in 2012 (LVMH, 2012). In the same time, Louis Vuitton keep telling the society about their policy of not allowing child labor (LVMH: Supplier’s Code Of conduct, 2014) but unfortunately, it just another spin doctoring to hide another mistake they had done. This would remark that Louis Vuitton secretly brings the negative impact to environment and to the...
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...busn620 all weeks assignments latest 2016 Click Link Below To Buy: 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...
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...Louis Vuitton in Japan Case Study Student’s Name Instructor’s Name Course Title Date What has made LV’s business model successful in the Japanese Luxury Market? Japanese luxury market has often placed the greater deal about value on quality along with exclusivity of the products that are being offered as well as it is the critical success factor for the luxury brands within Japan. Fact, which Louis Vuitton has regularly concentrated on enhancing the quality of their product portfolio, has been the important element towards brand’s success in between Japanese luxury market. What made LV’s business model successful within Japanese Luxury has been most important because of the aggressive marketing strategy that they have adopted in the entire nation. Rather with its heritage, “savoir-faire à la française”, constant innovation, quality of its products along with the offered lifetime repair guarantees, LV’s has managed making their Japanese consumers loyal to brand along with succeeded to build their empire within the Japan. What are the opportunities and challenges for LV in Japan? Opportunities Features of evolution of ageing Japanese population might be the option for Louis Vuitton, like wealthier families along with old women with enhanced buying power, however establishing the Internet business, application for the smart phones and also expending the newer range of products for men as well as kids might be next step for enhancing growth within the...
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...challenges of Louis Vuitton, the leading European luxury sector multinational firm, in Japan, taking into account the unique features of brand management, and integrating culture and consumer behaviour in Japan. In the last decade, Japan has been Louis Vuitton's most profitable market, but it seems that the global economic crisis has resulted in a decline in sales. Facing a weak economy and a shift in consumer preferences, Louis Vuitton has been adapting its unique strategy in the Japanese market. The days of relying on a logo and charging a high price seem to be gone as there is more interest in craftsmanship and value for money. To promote sales, the company has had to launch less expensive collections made with cheaper materials. The brand has also been opening stores in smaller cities, where the lure of the logo still works. Over the years, Japanese consumers have demonstrated fascination with and passion for the iconic brand. What have been the keys to Louis Vuitton's successful business model in the Japanese market? This case was written to help students develop their analytical and strategic decision skills. The case aims at helping in developing a business model, adapting to a new cultural environment, recommending a course of action for further strategic moves, identifying issues and eventually enhancing multidisciplinary decision making. This case can be used to discuss 1) the complexity of multinational business, particularly the issues of brand management, international...
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...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. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they...
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...turn your head and Louis Vuitton is everywhere. The celebration of the 30th anniversary of the presence of the illustrious, glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship Louis Vuitton store. When Louis Vuitton, the world’s biggest...
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