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Louis Vuitton Company Analysis Case Study


Introduction

Louis Vuitton is one of the most famous and successful brands in the world. It is famous for its quality and exclusivity. The history of the company suggests that major values of their business are creativity, expansion, quality, and luxuriousness (Paul & Feroul, 2010). It has gained significant popularity in the world and in Japan, in particular.

Synopsis of the Situation

Notable, Louis Vuitton heavily relies on its Japanese market as 55% of the company’s revenue comes from Japan (Paul & Feroul, 2010). It is necessary to note that the company’s profits are growing each year steadily, but recent years show modest growth in Japan due to weakening of the Japanese yen and some financial constraints the country faces (Yamaguchi & Chan, 2013).

Key Issues

One of the key issues is certain company’s dependence on the Japanese market as risks of this market can make the entire company vulnerable. Another key issue is counterfeiting, as the company loses huge sums of money (Paul & Feroul, 2010). Clearly, the company has lots of potent competitors in the market, like Bulgari, Tiffany, Hermes, and so on (Yamaguchi & Chan, 2013).

Define the Problem

The company focuses on the Japanese market and fails to come up with solutions to diminish counterfeiting and become more competitive in the world as well as Japanese markets.

Alternative Solutions

Effective solutions which can help the company restore its truly leading and safe position are the development of unique products to diminish counterfeiting (creating new technologies or accessories and so on), online launch shopping with only a few stores in largest cities and expansion to new markets (it will diminish risks).

Selected Solution to the Problem

Online shopping will enable the company to reduce costs as there will be no need in maintaining numerous retail units. At the same time, they will keep the sense of exclusivity as the prices will be still high (though reasonable). Admittedly, Japanese people love technology, and they will be glad to be able to shop and buy their luxury favorites online. The stores will be in the largest cities where customers will be able to touch and ‘try on’ some products as window shopping is popular in Japan (Yamaguchi & Chan, 2013).

Implementation

Admittedly, this strategy requires thoughtful consideration and comprehensive advertising campaign. People should learn about the new opportunity, but they should also get a clear message that their luxury items can be reached via the Internet. The brand does not become ordinary, but its exclusivity is tied with innovation, technology, and modernity.

Recommendations

The company should consider the possibility to develop online shops. It should also focus on diversification and further expansion. The company should invest in R&D to create truly unique products which can diminish counterfeiting.

Conclusion

On balance, it is possible to note that Louis Vuitton remains one of the most successful companies in the world market. Its products are still seen as luxury items for a special club of chosen. The company has implemented numerous effective strategies, and it can remain of the leaders.

References

Paul, J., & Feroul, C. (2010). Louis Vuitton in Japan. Web.

Yamaguchi, Y., & Chan, V. (2013). . Bloomberg. Web.

Appendix

SWOT Analysis

STRENGTHS
High quality of products, thousands of loyal customers, positive image, effective promotional campaigns, good share in the world market
WEAKNESSES
Dependence on the Japanese market, high prices and affordability at the same time
OPPORTUNITIES
Expansion to new markets, online shopping, development of new and unique ‘counterfeiting-free’ products
THREATS
Significant competition, weakening of yen, financial constraints, counterfeiting
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IvyPanda. (2020, March 27). Louis Vuitton Company Analysis. Retrieved from https://ivypanda.com/essays/louis-vuitton-company-analysis/

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"Louis Vuitton Company Analysis." IvyPanda, 27 Mar. 2020, ivypanda.com/essays/louis-vuitton-company-analysis/.

1. IvyPanda. "Louis Vuitton Company Analysis." March 27, 2020. https://ivypanda.com/essays/louis-vuitton-company-analysis/.


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IvyPanda. "Louis Vuitton Company Analysis." March 27, 2020. https://ivypanda.com/essays/louis-vuitton-company-analysis/.

References

IvyPanda. 2020. "Louis Vuitton Company Analysis." March 27, 2020. https://ivypanda.com/essays/louis-vuitton-company-analysis/.

References

IvyPanda. (2020) 'Louis Vuitton Company Analysis'. 27 March.

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