External & Global Environment of Louis Vuitton in Japan Essay

IntroductionThis case study is on the external and world(a) environment of Louis Vuitton (LV) in japan. For many years, Japan has been Louis Vuittons most useful market but the economic crisis has had a negative effect on gross sales sales have decayd in the past few years. fit to Tokyo trend 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 whizz of two things, the decline in the Nipponese frugality or that LV has fallen emerge of favor with the Japanese hatful. Synopsis of the SituationWith a decline in the economy, Louis Vuitton has been forced to open stores that offer a lower priced collection. The Japanese economy can no longer support the high-end collector give ear brands that it utilize to but Japan is in love with LV. Based on sales figures and brand two-baser indicators, we have compiled Asias Top Ten. It confirms what every luxe-loving Asiatic already knows on that point is nothing to beat the charms of Louis Vuitton and Rolex (Chadha, R. & Husband, Paul, 2006, para. 5). Key IssuesThe number one discover issue would be the decline in the economy. The second key issue is that the Japanese are looking for a candid deal, good value to harvest. The third key issue is the number of competitors in the Japanese markets that offer luxuriousness wares. Define the ProblemIn 2008, the economy in Japan and all over the world took a nosedive peoplewere worried ab come out making ends meet and severely rail follow through on buying prodigality 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 firmness would be to create a less expensive product and market it to a larger segment of the market. A second solution would be to amend the quality of their product and continue to market as a luxury item. A third solution would be to offer a pump of the line product available online that would draw the customers away from the opposite 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 exclusively online. By offer the products online the company 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 run a store, paying employees, or paying the costs of running a store. This would also offer customers the convenience of shopping from home. ImplementationImplementation of this plan could be tricky. The company admits to make reliable they have the force to handle a large volume of internet swans and they need the memorial on hand so they could ship items in a apropos manner. Probably a million small details will need to be dealt with so the company needs to do some think with employees and management as to what problems may arise at implementation. Being alert for any unforeseen problems would be very important 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 extensive advantage. Secondly, the company would have to make up a great ad thrust targeting the middle- crystallise and the products that would be available. RecommendationsLouis Vuitton should start a marketing campaign focusing on the middle class in Japan offering mid-priced products that are available exclusively online. The company should focus on smaller, out of the way cities first that do not have access to the high priced stores and move out from there. Depending on the success of the marketing campaign in the smaller cities, the co mpany 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 moving 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. Offering these products online opens the door for customers that do not stand up in an area where their stores are located.ReferencesLouis Vuitton Japan Lowering Prices. (2008, November 29). Tokyo Fashion News RSS. Retrieved June 9, 2014, from http//tokyofashion.com/louis-vuitton-japan- lowering-prices/Chadha, R., & Husband, P. (2006, January 1). The Cult of the Luxury Brand Inside Asias neck Affa ir 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.