Company Name: Louis Vuitton company
Topic of the Week: Louis Vuitton in Japan
Synopsis of the Situation
Louis Vuitton is a company that was founded in the year 1854 by Louis Vuitton in France. He started off with developing Canvas Damier Pattern with main agenda of making the company recognized by consumers. After the death of Louis Vuitton, George Vuitton his son resumed the management of the company. With time, and to be precise, after the world war I, the firm embarked on an expansion strategy to other courtiers and well as places within the country.
In Japan, Louis Vuitton firm made its entry in the year 1977 whereby the first stores were opened in Tokyo as well as in Osaka. The management was attracted by the economic boom that was slowly taking shape in Japan as compared to other Asian countries. As accompany in Japan, they embarked on making leather bags, watches, suitcases as well as other men and women wares. This attracted a large number of users in the country as it recorded that about twenty million women in Japan by then owned a brand of the Louis Vuitton’s bag each year.
With much profits gained in Japan, it is in record that by the year 2007 Louis Vuitton firm had a total of two hundred and fifty stores in Japan. This was possible by taking advantage of the high demand of fashionable bags and women’s wear hence much profit. The success of the company in Japan could not go without challenges such as counterfeiting and over the competition. Counterfeiting has damaged the face as well reputation of the company hence making huge loses. This has seen the company even lower the prices of their merchandise to attract consumers. This article, therefore, focuses on the challenges facing the Louis Vuitton firm in Japan.es
Alternative Solutions
- to solve the issues of counterfeiting of the firm’s merchandise, the company should embark on creating public awareness. This will enable the consumer only buy original Louis Vuitton’s merchandise.
- to solve the issues on over competition with the other companies such as Gucci company, the company should enhance advertisement. To do this, the company should create apps to enhance public awareness.
- There is a looming problem upon termination of M Jacob as the leader in Japan. To solve such problem since Jacob’s success is also the future of the company, the company can train certain employees to ensure a smooth transition of leadership of the firm.
Selected Solution to the Problem
The selected solution to the problem of counterfeiting will get the Louis Vuitton’s company back to its foot. Counterfeiting is an issue that affects various companies that manufacture the various product such as the Louis Vuitton. Therefore, another manufacturer may tend to develop the same products like the bags being manufactured by the same Louis Vuitton firm. This, therefore, hinders the progress of the company.
In addition, communication to the public will be a recipe to inform the consumers of the counterfeits in the market that resemble their original product. The company, therefore, has to be out in Japan and other parts of the world to inform the consumers to be on the knowledge of the counterfeits.
Implementation
To implement communication to the consumers the presence of counterfeits products in the market, the company should include a new logo into their original bags, this will bring difference with other product making it possible to tell the two products that seem to look similar apart.
Secondly, to implement a solution to the problems involving counterfeits, on behalf of the company, I would call for a rebrand of the products so that the faith, as well as reputation of the company to the consumers, can be enhanced at all time. The advertisement will be the tool to get the message across to the consumers hence the creation of awareness of the original company products, unlike the counterfeits that are produced by other manufacturers.
Recommendations and Conclusion
The solution on completion among the other manufacturing companies and the Louis Vuitton’s firm, the company should aim to improve the quality of their products such as the suitcases, handbags, watches, shoes among others so that it can compete in the Japanese market favorably without making huge loses. This is also important to the future of the company and to manage it further, qualified employees should be admitted to exercise their expertise to maintain the company levels as before.
One recommendation is that the Lois Vuitton firm should capitalize on the current technology to manufacture quality and more user-friendly products if the company is competing favorably in the Japanese as well as a global market by making quality products.
In conclusion, the problems such as counterfeiting, completion as well as management should be dealt with in time to keep the Louis Vuitton firm a global profit making a company just like it was before.
Appendix
Figure 1. SWOT Analysis based upon the topic of the week for the company case.
Strengths
1.the topic on the Louis Vuitton firm and the problem that is faced are common to most manufacturing firms hence gives the learner an insight of challenges facing the company.
- the topic further exposed the success techniques for companies such as good management as well as manufacture of quality products to be consumers
3.the topic further challenges the learners with business ideas hence expansion of companies into other company can be a major boost to profit generation.
Weaknesses
- the high price at which the company products are offered may in time deny the company enough revenue as the consumers may opt for cheaper products.
- if the counterfeiting that is a major issue and if not solved the company will experience losses.
- it is a weakness for the company to only venture into luxurious products that are very expensive, this hinders diversification of products.
Opportunities
1.with the elaborate advertisement of the company products, more consumers will be attracted.
- with the current management at the company, the is an opportunity that the company will be getting back to the top ahead of Gucci company.
- the current technology that is being implemented is soon taking the company to the another level of high-profit generation
Threats
1.the topic informs both public and business people to be aware of counterfeiting of products the is so common in Japan.
- stiff competitions that is between manufacturing companies such as Gucci and Louis Vuitton may lead to losing of revenue to the company if the other company offer quality products
- leadership transition is a likely threat that may face the company because Marc Job’s contact may come to an end and if a smooth transition is not taken into consideration, then the company may experience leadership instability.
