Introduction to Management Essay

1. IntroductionThis report will discuss to the highest degree go with background, country background, SWOT abridgment, Pest analysis, Porters analysis and give recommendations. At this report the discolouration chosen is Louis Vuitton. Louis Vuitton Mattenier also cognize as Louis Vuitton and shorten to LV. The Louis Vuitton label was founded by Vuitton in 1854 on deplore Nueve Des Capucines in Paris, France. As nearly as the headquarters its self-importance which located in Paris. Louis Vuitton is French ho implement mold design at that time which becoming one of the worlds precious brand with 40% profitable (Constant, 2012).2. Company BackgroundLouis Vuitton is one of the most valuables brand in its category which is prodigality in goods. Its products includes of trounce goods, handbags, trunks, shoes, watches, jewelry and accessories. Most of people adorned with the LV monogram which designed by well known designer and easily noticeable with simple love style as the id ea. 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 hold some outlets all around the world and capital of capital of capital of Singapore establish 3 big outlets and the latest which located in Marina embayment Sands that make queer island store that will float on the water. Singapore its a developed country which also attract tourist from opposite(a) countries to come to visit as a traveler as well as shopper. The three outlets cornerstone be found in Takashiwhitethorna, ION and Marina Bay sands.4. SWOT AnalysisSwot analysis are the shorten oral communication 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 Strength commemorate Value ( the brand is one of the oldest fashion houses with more than 150 years) inti mately recognizable (the logo and monogram)The brand has it own outlets in most of the giving shopping center. Well known Designer Custom Tailored in stock(predicate) for elite customers4.2 WeaknessThe Shops only available in exclusive stores reservation it difficult for developing countries The most expensive price compare to other competitorsRarely to give discounts to customers4.3 OpportunitiesThe company needs to make new on-going fashion mannersLarge market for luxury goodsCelebrity attractionsSynergy among brands/merger4.4 ThreatsFinancial crisisCompetitorsIncreased market for counterfeit productsResources are decrease5. PEST analysis5.1 Political and legalThe anti-counterfeiting trade agreement (ACTA) aims to get and international legal framework for targeting counterfeit goods. Where as in Singapore has capture one of the biggest shopping country in Asia, furthermore Singapore is a Bureaucratic country and extremely centralized, with 17% corporate tax, slight tax re gimes investors are not subject tocapital gains tax, dividend tax, and contrary stand in controls (Mehamer, 2013). On august 9 1965 Singapore became and independent nation and systematically attachd their economy, by maintaining their productivity with a still government and has strong laws in place and collectible to strict governance and associated fines less corruption, effective and transparent government. Singapore has ranked the 1st in the global alter trade index and 18 FTA with trading partners in their trade policy.5.2 stintingSingapore itself claim a strong economy statistics. It was recorded and the entropy shown as interest rate0.2%, Growth rate 6.90%, Jobless tempo 2.10% and GDP per Capita $37,293 (Mehamer, 2013). This massive record shows that Singapore harbor strong al-Qaida 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 an d fluctuations in macro economy.5.3 Socio- culturalSingapore citizen with excellent study and healthcare (Sirikan C, 2013). Literacy rate of 92.5% and a multitasking language where they lived as a transnational country that supports every citizens to speak 2 languages, as their mother knife is Mandarin or English. A significant 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 colossal impact for both companies and countries to safe their times to manage their needs. Whereas Singapore had operate a developed country the change of technology to renew their materials use its not problem for them to follow the world tradebusiness.6. Porters AnalysisPorters Five ForcesAnalysis6.1 Threat of forward-looking Entrants scurvyCompetitor GUCCI, Yves Saint-Lauren, Channel, Bally.Jewelry Montblanc, Bulgari, Cartier, Officine Panerai.Even though LVMH have a strong many competitors Luxury goods, LVMH whirl a strong and unique in their products such as high quality products, well do for every customers and brand value. Furthermore, LVMH has no worries with their competitors they have a loyal customers who incessantly bought the products and advertise to their friends, longstanding commitment to quality and Investment required would be extremely large for those who do businesses. Besides that for a new goods brands use give an impact to LVMH (Dang, 2013). 6.2 Bargaining Powers of Suppliers menialFor a big company LVMH have a Supplier s and subcontractors are required to combine with strict environmental guidelines. Where LVMH needs lots of materials they will have many offers which the company produce the materials with the lowest deals and highest quality needs (Dang, 2013).6.3 Bargaining Powers of CustomersLOWWith branded digit and value customers had become the most loyal of companies buyers, from the experience that they ever had, has build the trust and set their mind become a loyal buyer. Fashion is a trend with a strong name LVMH has swan 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 contestation Among CompetitorsModerateIn every company will perpetually have their own competitors in this case LVMH are working in Luxury industries in a big scale to have an competitors will always be a positive things to brought new ideas and trends, in fact competitors do not sell exactly 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 certain products from time to time, or producing special fluctuation of the same handbag in different markets. LV product could become even more exchange premium, Create 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 consider to concentrating its business model to production of slash goods only becoming 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 with 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 national 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. Working in Luxury markets sales is stable jobs and it wasnt easy but they have to stable their sales and increase the value to become a premium brandReference inclineConstant, J. (2012, 11 02). lvmh. Retrieved 01 14, 2014, from Louis Vuittonhttp//www.lvmh.com/investor-relations/lvmh-at-a-glance/executive-committee/Reuters, T. (2013, 11 02). Worlds Most Valueable Brands. Retrieved 01 14, 2014, from Forbes http//www.forbes.com/companies/louis-vuitton/Mehamer, C. (2013, 09 13). http//prezi.com/bin1bd1_2zt1/pest-analysis. Retrieved 01 29, 2014, f rom http//prezi.com/bin1bd1_2zt1/pest-analysisSirikan C, r. (2013, 07 28). A Cultural & Economic Analysis of Singapore for making Market Entry Decisions. Retrieved 01 29, 2014, from skid Share http//www.slideshare.net/SrikiranCRai1/a-cultural-economic-analysis-of-singapore-for-making-market-entry-decisionsDang, A. W. (2013, 01 23). Louis Vuttion Moet Hennessy Presentation. Retrieved 01 29, 2014, from SlideShare http//www.slideshare.net/mraldang/louis-vuttion-moet-henness