MT460 Management Policy and Strategy: Louis Vuitton in Japan (Case Study Sample)

Unit
< Louis Vuitton in Japan.>
Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author:
Professor: Dr.
Date: ,


Name of Case Study
Company Name: Louis Vuitton.
The topic of the Week: Louis Vuitton in Japan.
Synopsis of the Situation
Louis Vuitton Inc. remains determined to get more customers in Japan to increase its sales. Its venture in Japan has become one of the most successful steps the firm’s management have implemented. Apart from increasing its sales, the measure has grown the company’s brand name across Tokyo and other cities in Japan (Kapferer, 2014). The company remains determined to outcompete its rivals in this industry. The industry comprises of numerous firms each selling different products. Louis Vuitton handles products including books, sunglasses, leather goods, Shoes, Watches, accessories among others.
In the recent days, the firm has recorded increasingly weak sales in Japan. Principal causes of this slowing sales include a slowing economic growth in Japan. The slowing economic growth has led to less money among the populace in Japan. This move has made the customers switch to less expensive brands that they can afford. This step has made the company to record low revenue. The analysis of this paper aims to identify the solution to this problem.
Alternative Solutions
1. The firm should move its operations to other countries in Asia and South America. This move would prove to be very beneficial to the company. Apart from promoting the brand in these regions, it will provide additional funds for the enterprise.
2. The company should reduce its cost of operations and get a cheaper source of raw materials. This move will permit the company to sell products cheaply and hence retain its market in Japan.
3. The company should diversify its production in Japan and produce other products such as packed luxurious foodstuffs to maintain its high income in Japan.
Selected Solution to the Problem
The best approach that Louis Vuitton should use is through venturing into other markets. Nations across Asia and South America are quickly experiencing growth in their economic standards. This move is increasing the consumer income and hence provides a huge market for products. Nations such as Brazil and Colombia are experiencing economic growth. This approach provides a huge option for Louis Vuitton to solve the current woes.
The firm must acknowledge the fact that the market in Japan is quickly shrinking and any approach to increase its production in this country will not result in additional revenue. The current economic conditions indicate that consumers are not willing to spend more money on the luxurious products. Most of them are already switching to low-priced products due to economic problems. Venturing into other countries that are not already saturated will allow the firm to create new markets using minimal costs. This move will give the firm a chance to get more income and compensate for the already slowing revenue a move that is beneficial for the company.
Implementation
Implementing this solution will not be an easy task. To implement this solution, I will organize a global trip in which I would tour all nations in Asia and South America to identify the possible market for the products of the company. The trip will involve interacting with the customer to determine their potential and willingness to buy these products. I will also conduct a market analysis in these nations and determine the best place for the company to take its products. The study will also help the business to identify the culture in these countries.
After the study, I will be able to determine the best countries to venture. The information I will get will help me identify the population to target in the marketing. I will then recommend to the company management and marketing team to introduce the products in the best market. I will advise the business to add small products to avoid wasting numerous products in a new market. I will collect the data on the initial sales recorded by the company and use it to make decisions on whether to add more products to this nation. Through this approach, I will be able to implement the solution on behalf of the firm.
Recommendations and Conclusion
Another viable solution that this business could implement is through diversifying its products. Currently, the company mostly handles products in the field of clothes and footwear. It would be a sage decision for the firm to venture in the production of goods such as packed foodstuffs. This approach will generate more revenue for the enterprise and create a good brand image for the company. Introducing the foods will also give the business a new avenue to use in a bid to increase its presence in the global market.
The success of Louis Vuitton will depend on the ability of the management to respond to the changing demand. The firm should discover the need to take its productions quickly to countries where the competition is still slow. The shrinking market in Japan is an indication that consumers already found cheaper options due to the economic hardships. This situation does not apply to Louis Vuitton but to other firms (Solomon, 2014). Global expansion efforts ar...