Final Case Exam : Louis Vuitton

3678 Words15 Pages
Final Case Exam: Louis Vuitton Submitted by Daniel Ansah 103183107 Submitted to Professor Tony Mao University of Windsor 04-75-498-30 Saturday August, 14, 2014 TABLE OF CONTENTS I. KEY ISSUE 1 II. EXTERNAL ANALYSIS 1 Industry 1 Key Success Factors 1 PESTEL 1 PESTEL Summary 2 Porter’s Five Forces 2 Porter’s Five Forces Summary 3 III. INTERNAL ANALYSIS 3 Louis Vuitton’s Strategy 3 VRINE 3 VRINE Summary 4 Financial Analysis 4 IV. CONCLUSION 5 Decision Criteria 5 Alternatives 5 Decision Matrix 6 Recommendations 6 Implementation 6 Short Term (0.5 – 1 year) 6 Long Term (1 – 5 + years) 7 Contingency Plan 7 KEY ISSUE In recent years, Louis Vuitton’s actions have caused the company to sacrifice one or more of…show more content…
Regardless of the financial tool or metric used, the industry is growing steady all around the world. With the largest gains in the last few years in China but who are still behind North America and Europe in total market share in the global industry. Consumers in the lowest personal income bracket (accessible) of the three customer segments (absolute, aspirational and accessible) are recovering from the 2008 economic rescission. This factor is predicted to grow the industry in the next couple of years as these consumers re-enter the market. The top two segments are fairly immune to economic recessions because of their large personal wealth. This allows them to take a financial hit while still maintaining a lifestyle they are accustom to. Sociocultural: Luxury goods by their very definition are not a necessity but in the top two customer segments (absolute and aspirational), to a lesser extend the accessible segment, they are deemed to be necessary. As a result, the sales of the goods of the industry remained fairly steady during the recession mainly due to those two segments. Consumers in different markets react differently to changes in the industry and that needs to be accounted for, when making decisions regarding production methods and pricing. For example, in China consumers are more brand conscious and as such when logo brands become less exclusive there was a shift in buying habits from the absolute and aspirational segments. As

    More about Final Case Exam : Louis Vuitton

      Open Document