External & Global Environment of Louis Vuitton in Japan Essay

IntroductionThis case study is on the external and global environment of Louis Vuitton (LV) in lacquer. For many years, Japan has been Louis Vuittons most profitable market but the economic crisis has had a banish effect on sales sales have disdaind in the past few years. According to capital of Japan Fashion News in November of 2008, LV has seen more than a 5% decline in sales in Japan so far this year (para. 3). They attribute the decline to one of two things, the decline in the Japanese frugality or that LV has fallen out of favor with the Japanese people. digest of the SituationWith a decline in the economy, Louis Vuitton has been forced to open put ins that offer a lower priced collection. The Japanese economy can no longer support the high-end collector name brands that it used to but Japan is in love with LV. Based on sales figures and brand image indicators, we have compiled Asias choke Ten. It confirms what every luxe-loving Asian already knows There is nothing to be at the charms of Louis Vuitton and Rolex (Chadha, R. & Husband, Paul, 2006, para. 5). Key IssuesThe number one severalize issue would be the decline in the economy. The mo key issue is that the Japanese ar looking for a good deal, good appraise to increase. The third key issue is the number of competitors in the Japanese markets that offer sumptuosity products. Define the puzzleIn 2008, the economy in Japan and all everywhere the world took a nosedive peoplewere worried about making ends meet and severely chop down on buying lavishness items. People started looking for products that offer a better value for their yen and became more cost conscious of what they were buying. There is serious competition in Japan for the luxury market. Among the competitors are Rolex, Cartier, Gucci, Chanel, and Prada to name a few (Table 1.1). Alternative SolutionsOne alternative solution would be to constitute a less expensive product and market it to a larger segment of the market. A sec ond solution would be to improve the quality of their product and continue to market as a luxury item. A third solution would be to offer a middle of the line product open online that would draw the customers away from the other luxury item companies that would not require a storefront. Selected Solution to the ProblemThe selected solution to the problem would be to offer a middle of the line product available only when online. By offering the products online the union would not be require to have a physical store for customers to come into. This would cut costs dramatically there would not be the overhead of operating a store, paying employees, or paying the costs of running a store. This would also offer customers the convenience of obtain from home. ImplementationImplementation of this plan could be tricky. The company neexplosive detection system to make sure they have the power to handle a large volume of internet orders and they need the inventory on hand so they could sh ip items in a timely manner. Probably a million small details bequeath need to be dealt with so the company needs to do some brainstorming with employees and management as to what problems may arise at implementation. Being prepared for any unforeseen problems would be very principal(prenominal) before implementation, do not wait until problems arise to brainstorm solutions. By making sure they are prepared for orders, word-of-mouth advertising could be a huge advantage. Secondly, the company would have to make up a great advertisement candidature targeting the middle-class and the products that would be available. RecommendationsLouis Vuitton should start a marketing campaign instructioning on the middle class in Japan offering mid-priced products that are available altogether online. The company should focus on smaller, out of the way cities first that do not have price of admission to the higher priced stores and move out from there. Depending on the success of the marketin g campaign in the smaller cities, the company should move to the larger cities where they have stores in order of population starting from smallest to largest. If these campaigns are successful, they could consider touching outside of Japan into China. ConclusionWhile Louis Vuitton is very popular in Japan, the decline in the economy has affected sales. Because there are so many other luxury stores in Japan, the company should focus on the larger, middle class segment of the population. By offering a lower priced, quality product the company could gain market share by attracting more customers from a larger population of people. fling these products online opens the door for customers that do not live in an area where their stores are located.ReferencesLouis Vuitton Japan Lowering Prices. (2008, November 29). capital of Japan Fashion News RSS. Retrieved June 9, 2014, from http//tokyofashion.com/louis-vuitton-japan- lowering-prices/Chadha, R., & Husband, P. (2006, January 1). The Cu lt of the Luxury Brand Inside Asias Love Affair With Luxury. . Retrieved June 9, 2014, from http//eds.a.ebscohost.com.lib.kaplan.edu/eds/results?sid=d07a16b5-4279-45c4-925174ed637b11f1%40sessionmgr4004&vid=3&hid=4110&bquery=DE+%22Brand+name+products++Social+aspects+Asia%22&bdata=JmNsaTA9RlQmY2x2MD1ZJnR5cGU9MCZzaXRlPWVkcy1saXZland image scores.