One of the most important fashion companies in the world is Louis Vuitton. The business sells products through lease units, boutiques, and online shops. The market for luxury goods has grown significantly in the recently in the quickly evolving industry. Due to the state of the industry, the external operating environments and the international markets have experienced numerous issues (Lockwood, Worboys & Kothari, 2012). For instance, the firm stands hostile effects from the intimidations of counterfeited brands amongst several markets as well as from the crisis of the economy.
The rate of growth of Louis Vuitton has not been manageable bearing in mind the global pressure. According to Anderson, Goudie & Parker (2013), the business has not been in a point to balance the organization's legacy and core values of due to high pressures from the outside market. Hence, the case study seeks not only to recognize the different strategies of production that are available but also endorsing the possible approach to deal with the fears of global correction and regulation at Louis Vuitton.
Alternative Solutions
In order to transform its production to match the present demands of the global market, Louis Vuitton has three options which are available; these comprise of the hybrid based alternatives, the heritage based as well as the automated options.
The automated alternative
Includes the changing of production to a model that is more assembly lines. This opportunity is associated with the need to automate the fashion brands' output. According to Lockwood, Worboys, & Kothari (2006), the firm under this technique will be able to expand its production and the quality of products. The method could lead to the loss of the high-end market and as well offer a higher customer base.
The heritage-based alternative
In order to preserve the core values as well as the heritage of the firm, this choice involves the utilization of additional artisan labor. Although this option frequently appeals to high-end customers, it could, however, lose ease of access because of the rivalry in the international markets.
The hybrid alternative
Deals with the production of reachable products by use of both perfect products and automation using artisan labor, which hence would lead to probable gains amongst all segments. On the other hand, the company risks losing in all the divisions and the brand that is quickly cheapening.
Selected Solution to the Problem
In my opinion, I believe the best fit for the firm would be the hybrid alternative, since using this specific option would not only help in increasing the fashion brand's global competitiveness but also, entrance into the perfume would be facilitated with the accomplishment of this approach. Through the artisan section, Louis Vuitton would be capable of producing goods that meet the requirements of the inaccessible markets.
Moreover, it would fight the grey market by not only attracting Asian market to Europe but also increasing the European prices; this is because, in order to go with the fluctuating fashion in the present international markets, the firm has been forced to change its strategies for production rapidly.
Implementation
The firm will have to consider three phases comprising of the long-term, the short term, and the medium term phases. Within the first six months, the short term which would involve research and development, figuring out the legal issues, an increase of European prices and creation of a brand and logo will be completed. Furthermore we have the medium term whose implementation includes continued incremental European price increase as well as the production and sales of accessible brand and perfume; moreover, it is within the 12th month, when the medium term will be completed.
Lastly, the long-term implementation phase which would involve keeping up with the hybrid plan requirements, evaluation of the current plans and review the sales data will be completed within the 18th month. Likewise, implementation phase will be critical in tackling not only the external environmental concerns which includes competition and brand loyalty, but also the inherent macroeconomic issues.
Recommendations and Conclusion
In the continuous production of handcrafted products, it is recommendable for the firm to utilize the hybrid tactic since it would assist in using a more cost-effective manufacturing process in creating an accessible brand (Anderson et al., 2013). In order to combat the stiff competition in the present fashion industry, this strategy will assist the firm to maintain its brand and its global presence.
Most significantly, the hybrid approach is not only significant in meeting the fashion demands existing in the modern rapidly varying environments but also in maintaining the identity of the firm and the global brand. The business should utilize the approach to produce traditional objects using the local artisans amongst the markets in remote since this is relatively beneficial in gathering the wants of the markets in the remote.
References
Anderson, D., Goudie, A., & Parker, A. (2013). Global Environments through the Quaternary. doi:10.1093/acprof:osobl/9780199697267.001.0001
Lockwood, M., Worboys, G., & Kothari, A. (2006). Managing protected areas management: A global guide. London: Earthscan.
Appendix
SWOT Analysis of Louis Vuitton
Strengths
International presence and high brand recall.
The brand has various clients that include international celebrities.
The brand is accessible in all the company’s stores.
Weaknesses
Brand sales and growth is hampered by fake imitations.
It is difficult for customers across the globe to access the products of the firm since the brand of the company is only exclusively available on its stores.
Opportunities
There is a chance of the firm to provide yearly discounts for their clients.
For the company to stay in operation, it should adopt the current fashion trends.
Threats
The brand sales could adversely be affected by the economic crisis.
In all across the globe, the brand is counterfeited.
