You finally bought what you have been wanting for so long, a Louis Vuitton monogram “never full” tote. You have been comparing prices at different boutiques and department stores for months, until you saw a deal on eBay where the bag is listed for $640 – a new Louis Vuitton “never full” tote usually costs $1720. After missing several deals, you secured the auction for $890 with free shipping provided. The bag arrived a week later, and you began to doubt whether it is genuine leather handmade by French craftsmen as Louis Vuitton promised.
According to Louis Vuitton’s parent company, French luxury goods maker Moët Hennessy, 90 percent of the Louis Vuitton bags sold on eBay are fakes (Carvajal). However, the auction site is by no means at fault for the knockoffs and should not be held liable for the counterfeit luxury goods sold on its website.
Hundreds of millions of dollars transactions are made on eBay everyday. Yet, being simply a conduit for all these businesses, eBay should not be deemed responsible and, indeed, has no control over every single deal between sellers and buyers. In this arena created by the auction house, global sellers and buyers negotiate on purchases freely and are asked by the website to carry out the transactions themselves. As the US district court concluded following the first-ever trademark infringement lawsuit filed by Tiffany & Co. against the auction website, while eBay “provides the venue for the sale and support for the transaction, it
The collection of private, commercially oriented organizations, ranging in size from sole proprietorships to large corporations is referred to as
EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]
Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012
Louis Vuitton “was established in France in 1854 by Louis Vuitton and became known as one of the oldest French luxury fashion houses” in the industry (Pearce & Robinson, 2013, p. 14-2). The firm’s products range from high quality “leather goods, handbags, trunks, shoes, watches, jewelry, and accessories”; manufactured by highly skilled and expensive laborers in France (Forbes.com, 2016). In addition, Louis Vuitton market their products “in 50 countries with more than 460 shops and generates more than €7-billion ($9.5-billion U.S.) in annual sales” (Wendlandt, 2013).
Another challenge for Louis Vuitton is the market and brand dilution as it has already entered and successfully fit in the Japanese market. The products have already maintained the “acceptable” group, and the company has become to feel difficult to increase the revenue. The figure provided in the case showed that nearly half of the Japanese have Louis Vuitton-monogrammed items by the time of 2007. This seemed to make LV prevalent but not luxury any more. To maintain its brand image, it is
One of the most successful clothing brands in the world, Polo Ralph Lauren has built its success around more than just its line of luxurious designer clothes, but the company is one of the top marketing designers also. It was awarded “ Luxury Brand of the Year” in 2010 by the Luxury Daily. A company that was founded by a man named Ralph Lifchitz, better known as Ralph Lauren of the Bronx, New York in 1968. Since the age of 12, Lauren’s had a strong appeal and taste for looking classy. He would spend the money he earned working with his father after school, purchasing expensive suites. In his latter years, while working for a company called A. Rivetz & Co., Lauren began designing wide ties, the beginning of what latter evolved into the
b. Does the issue of branded vs. private label enter into this consideration? Why or why not?
The first Lululemon store was initially created as a place for people to gather to learn and share ideas about a healthy lifestyle. As the company expanded, Lulu could no longer target every individual walking into the store with knowledge of healthy living. At this point, the company shifted its focus to educating their employees who could positively influence everyone who walked into the stores. The thought and reasoning that went into the first Lulu store has continued as the company has grown. It has continued to target active people while pushing everyone towards a healthy lifestyle. Its main target market is young woman, between 15 and 34 years old, in the middle to upper classes. One of
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In a desire to increase the company’s working capital for the company’s future financial investment in a plant modernization and expansion program, Beauregard Textile Company increased the price of its Triaxx-30 product to bring its profit margins up to that of their other products. In a sequential-move game theory Calhoun & Pritchard, Beauregard’s primary rival, did not raise its price even though its costs were assumed to be similar. As a result, Beauregard’s unit sales dropped significantly as their customers purchased the cheaper competitor’s product, causing Beauregard’s profit contribution to decrease. A closer examination of Beauregard’s cost analysis revealed that it includes fixed costs, which when
In pursuit of upscale segments of the market and an increased market share, Consumer Food Groups (CFG) purchased the rights to become a distributor of Montreaux’s European chocolate products in the United States in June 2011. As CFG is the division which produces confectionery products for Apollo foods, they contribute not only to one-third of the company’s total revenues and net income, but are a vital part of Apollo’s ranking as second in the global confectionery business. Upon acquisition of the rights for Montreaux’s chocolates CFG formed a new division, Montreaux Chocolate USA. Under the leadership of David Raymond as division manager and Andrea Torres
1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?
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