Thursday, January 17, 2019

Introduction to Management Essay

1. inductionThis theme testament discuss about accompany background, farming background, prep atomic number 18 analysis, Pest analysis, Porters analysis and give recommendations. At this report the send chosen is Louis Vuitton. Louis Vuitton Mattenier also cognise as Louis Vuitton and shorten to LV. The Louis Vuitton tail was founded by Vuitton in 1854 on Rue Nueve Des Capucines in Paris, France. As well as the headquarters its self which dictated in Paris. Louis Vuitton is cut house fashion design at that time which becoming unmatchable of the worlds valuable brand with 40% profitable (Constant, 2012).2. f estimaternity solid groundLouis Vuitton is adept of the virtu altogethery valuables brand in its category which is sumptuousness in goods. Its products includes of leather goods, runbags, trunks, shoes, watches, jewelry and accessories. Most of nation adorned with the LV monogram which designed by well known ornamentalist and easily noticeable with simple live s tyle as the idea. Louis Vuitton with a brand Value of $28.4 Billions in USD with a sales of $9.4 Billions (Reuters, 2013).3. Country BackgroundLouis Vuitton headquarters is located in Paris, they had open many outlets all near the world and Singapore grant 3 large outlets and the latest which located in Marina Bay Sands that open unique island store that will float on the water. Singapore its a developed orbit which also attract tourist from opposite countries to come to visit as a traveler as well as shopper. The three outlets weed be found in Takashimaya, ION and Marina Bay sands.4. SWOT psychoanalysis rise analysis atomic number 18 the shorten words of Strength, Weaknesses, Opportunities and Threats. SWOT analysis are mainly used for a company to build their outlets/factory in overseas to extend their products and profits.4.1 StrengthBrand Value ( the brand is one of the oldest fashion houses with more(prenominal) than 150 years) Easily recognizable (the logo and monogr am) The brand has it own outlets in most of the large obtain center. Well known Designer Custom Tailored usable for elite customers4.2 WeaknessThe Shops alone available in exclusive stores making it difficult for developing countries The most expensive price compare to other competitorsRarely to give discounts to customers4.3 OpportunitiesThe company need to make new current fashion trendsLarge marketplace for lavishness goodsCelebrity attractionsSynergy between brands/merger4.4 ThreatsFinancial crisisCompetitors change magnitude market for counterfeit productsResources are decreasing5. PEST analysis5.1 governmental and legalThe anti-counterfeiting trade agreement (ACTA) aims to establish and international legal modeling for targeting counterfeit goods. Where as in Singapore has become one of the biggest shopping expanse in Asia, furthermore Singapore is a Bureaucratic country and extremely centralized, with 17% corporate tax, less tax regimes investors are not subject to capital gains tax, dividend tax, and foreign exchange controls (Mehamer, 2013). On august 9 1965 Singapore became and independent nation and consistently increased their economy, by maintaining their productivity with a stable government and has severe laws in place and repayable to strict governance and associated fines less corruption, efficient and transparent government. Singapore has be the 1st in the global enabling trade index and 18 FTA with trading partners in their trade policy.5.2 EconomicSingapore itself have a strong economy statistics. It was immortalizeed and the data shown as interest rate0.2%, Growth rate 6.90%, Jobless Rate 2.10% and gross domestic product per Capita $37,293 (Mehamer, 2013). This broad record shows that Singapore have strong basis economy in their government. Louis Vuitton with a sales of 7.2 billions in 2012 were involved in Singapore Trade to GDP ratio of 270.8%, and high dependency on global market trends and fluctuations in macro ec onomy.5.3 Socio-CulturalSingapore citizen with excellent education and healthcare (Sirikan C, 2013). Literacy rate of 92.5% and a multitasking language where they lived as a multinational country that supports both citizens to verbalize 2 languages, as their mother tongue is Mandarin or English. A probative percentage of non-residents who lived in Singapore with a Gini coefficient index of 48.1 shows that Singaporean can easily adapt with foreign where the employee of the company can interact with customers behavior and promote their products relay on their cultures behavior and difference.5.4 TechnologicalIn the last tens of years ago, technology in Singapore has a massive evolved of their needs. The growth of technology helps Louis Vuitton to communicate with their headquarters, due the change of currency, products release, transactions and supports more efficient. Furthermore it give a huge impact for both companies and countries to good their times to manage their needs. Whe reas Singapore had become a developed country the change of technology to renew their materials use its not problem for them to make up the world trade business.6. Porters AnalysisPorters Five ForcesAnalysis6.1 Threat of New EntrantsLOWCompetitor GUCCI, Yves Saint-Lauren, Channel, Bally. jewelry Montblanc, Bulgari, Cartier, Officine Panerai.Even though LVMH have a strong many competitors Luxury goods, LVMH offer a strong and unique in their products such as high quality products, well service for every customers and brand determine. Furthermore, LVMH has no worries with their competitors they have a loyal customers who always bought the products and advertise to their friends, longstanding perpetration to quality and Investment required would be extremely large for those who do businesses. Besides that for a new goods brands wont give an impact to LVMH (Dang, 2013). 6.2 negociate Powers of SuppliersLOWFor a big company LVMH have a Suppliers and subcontractors are required t o comply with strict environmental guidelines. Where LVMH needs lots of materials they will have many offers which the company produce the materials with the utmost deals and highest quality needs (Dang, 2013).6.3 Bargaining Powers of CustomersLOWWith branded name and value customers had become the most loyal of companies buyers, from the experience that they ever had, has build the cartel and set their mind become a loyal buyer. Fashion is a trend with a strong name LVMH has put their products into the top levels and Louis Vuitton products are never on sale.6.4 Threats of Substitute ProductsLOWHigh profile luxury goods LVMH brands have high quality productsdifferentiations and believe. 6.5 Rivalry Among CompetitorsModerateIn every company will always have their own competitors in this graphic symbol LVMH are working in Luxury industries in a big scale to have an competitors will always be a verifying things to brought new ideas and trends, in fact competitors do not sell scarc ely same products and different brand value (Dang, 2013).7. RecommendationsTo make LV more appealing to the consumers, some products of the brand can be made available only in small quantities, by limiting its production of current products from time to time, or producing special edition of the same handbag in different markets. LV product could become even more premium, cause products for collection of limited editions, expend the trend by increasing the popularity by adverstiment. Open their outlets store only in high end malls all around the world. To become more premium in their products LVMH may think to concentrating its business model to production of leather goods only becoming medical specialist in their interest.8. ConclusionsLouis Vuitton is one of the leading fashion trends industries in the world which has significant every year. Louis Vuitton will always have their loyal customers where they bought their new products, with a strong brand value LVMH has no worries w ith their competitors. On the other hand due the change of time they have to consider with their resources that year by years will decreased their materials. Louis Vuitton shall put more concern on their weakness in both internal and external put them in the higher level of luxury goods market. They may consider to merge with other company in different products offer to increase and fasten their sales. works in Luxury markets sales is stable jobs and it wasnt easy alone they have to stable their sales and increase the value to become a premium brandReference ListConstant, J. (2012, 11 02). lvmh. Retrieved 01 14, 2014, from Louis Vuittonhttp//, T. (2013, 11 02). domains Most Valueable Brands. Retrieved 01 14, 2014, from Forbes http//, C. (2013, 09 13). http// Retrieved 01 29, 2014, from http// sisSirikan C, r. (2013, 07 28). A Cultural & Economic Analysis of Singapore for making Market Entry Decisions. Retrieved 01 29, 2014, from Slide Share http//, A. W. (2013, 01 23). Louis Vuttion Moet Hennessy Presentation. Retrieved 01 29, 2014, from SlideShare http//

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