The paper "Full Strategic Appraisal of Louis Vuitton " is an outstanding example of a business case study. The main purpose of this report is to undertake a full strategic appraisal of Louis Vuitton which has culminated in the generation. This will be done by undertaking an external analysis this will entail a PESTLE analysis as well as the Porters Five Forces of the company. This section will be followed by an internal analysis and this will be undertaken through the use of value chain model, competency framework and the VRIO framework.
The other section will deal with the company’ s corporate and business strategy, an outline of the issues and challenges that are facing a company as well as the identification and evaluation of the main strategic options for growth. The report will then offer a list of recommendations and conclusion. Louis Vuitton which is normally shortened as LV is a French Fashion house that was founded back in 1854 and its founder was Louis Vuitton. Most of the company products have the label LV monogram and their products include luxury trunks, leather goods, ready-to-wear, watches, shoes, accessories, jewelry, books and sunglasses (Thomas 2007).
Most of the products are sold through the company standalone boutiques, e-commerce section of their website as well as through lease departments in the high-end department’ s stores. The major geographical markets for the company products are in Europe, the United States, Japan and China. The mission of LV is to create products that symbolize unique savoir-faire, a carefully preserved heritage combined with a dynamic engagement with modernity. The company vision is the quest for excellence as well as creative momentum.
LV also has a number of values and they include being creative and innovative, product excellence, bolstering the image of the brands with passionate determination. Based on the porter's generic strategies LV seems to be making use of the differentiation strategy. Based on this LV distinguishes their products from others with the aim of making them more attractive to their target market (Mahubani 2013). 2.0 External analysis 2. 1 Macro analysis (PESTLE) 2.1.1 Political The international luxury products market can be separated based in the locations may it be in Europe, America, Asia-pacific and Japan.
In general, the major countries that consume the luxury product can be said to have a relative and stable political environment. However, in geographical areas such as in southern Europe, the financial turmoil, as well as the austerity measures, implemented y the government led to weakening demand for the luxury goods and mostly among the local people (Oxford University Press 2007). But the travelers who made a visit to the country filled the existing gap. Import duty in countries also tends to be a major factor that is mainly considered in the luxury product market all over the globe.
An increase in import duty will lead to an increase in price among various countries. As a matter of fact, the grey market can be developed in countries that depict high price differences. 2.1.2 Economic Based on the fact that most industries in the luxury market are based in Europe, the exchange rate of the euro will be an essential aspect of the industry. The consumption of luxury products in countries such as China is bound to increase and this will e as a result of the first growth being experienced in the country and most especially in China, Macau and in Hong Kong.
Additionally, it would be crucial to note that the luxury market is not adversely affected by the crisis.
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