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Louis Vuitton in Japan

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17 августа 2014
20 августа 2014
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Работа выполнена на английском языке.
О специфики работы Louis Vuitton в Японии.
Louis Vuitton in Japan.

Question 1.

What has made Louis Vuitton’s business model successful in the Japanese market?

6508252 Anzhela Kudryashova

When entering the Japanese market, in 1977, Louis Vuitton already had strong brand

recognition on the luxury fashion market. However, Japan has its own specific business

environment, so Louis Vuitton needed to implement a new business strategy.

To start with, Hill defined a firm’s strategy as ‘the actions that managers take to attain

the goals of the firm’, which is the maximization of their value and its shareholders. (Hill and

Wee et al., 2012, p.448)

Louis Vuitton has made a great success in the Japanese market, generating around 30%

of their revenue from Japan solely. (Paul and Feroul, 2013), thus maximized the value of

the co Показать все
Question 1.
What has made Louis Vuitton’s business model successful in the Japanese market?

Question 2.
What are the opportunities and challenges for Louis Vuitton in Japan?

Question 3.
What are the specifics of the Japanese fashion luxury market?

Question 4.
How did Louis Vuitton enter into the Japanese market originally? What are the other entry strategies it adopted later to strengthen its presence?

Question 5. Will Louis Vuitton have any new challenges arise due to the global financial crisis? If so, how can they overcome the new challenges?

1 Degen, R. 2009. The success of luxury brands in Japan and their

uncertain future. [e-book] p. 19. core.kmi.open.ac.uk/download/pdf/

9306177.pdf [Accessed: 3 Dec 2013].

2 Hill, C., Wee, C. and Udayasanker, K. 2012.International business.

Singapore: Mc-Graw Hill Education (Asian).

3 Investopedia. 2013. Investopedia - Educating the world about finance.

[online] Available at: http://www.investopedia.com/terms/l/luxury-item.asp

[Accessed: 1 Dec 2013].

4 McKinsey & Company. 2010. The new Japanese consumer. [online]

Available at: http://www.mckinsey.com/insights/consumer_and_retail/

the_new_japanese_consumer [Accessed: 2 Dec 2013].

5 Paul, J. and Feroul, C. 2010. Vouis Vuitton in Japan. Ontario: Ivey.

6 Trigg, A. 2001. Veblen, Bourdieu, and conspicuous consumption. Journal

of Показать все
High attractiveness of the female part of the population to a ‘good look’ and specifics of their life style has created an opportunity for the growth of Louis Vuitton in Japan.Nevertheless, there are also few challenges that the company has to meet with. The main problem for Louis Vuitton is the sluggish financial situation and the appreciation of Japanese yen to US dollar and euros.As it was mentioned before, special relationship with fashion in Japanese culture and obsession with status-driven brands attracts almost every company that producing luxury goods to enter the Japanese market, hence it has created a big competition. After 2008, low range cloth retailers have entered Japanese market, thus becoming another big competitor for LV. That might be a challenge for the company to keep Показать все
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