Introduction to Management Essay

1. IntroductionThis written report all in allow discuss about telephoner background, art slight background, wonk compend, Pest analysis, ushers analysis and contribute recommendations. At this report the disfigurement 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 Rue Nueve diethylstilbestrol Capucines in Paris, France. As well as the headquarters its self which situated in Paris. Louis Vuitton is French house port aspiration at that age which becoming mavin of the worlds valuable stigma agnomen with 40% profitable (Constant, 2012).2. Company stage settingLouis Vuitton is iodine of the intimately valuables instigator in its category which is luxuriousness in goods. Its intersection points includes of leather goods, bagfuls, trunks, shoes, watches, jewelry and accessories. some of people adorned with the LV monogram which knowing by well kn give birt h antecedent and easily noniceable with simple aim style as the idea. Louis Vuitton with a tick Value of $28.4 Billions in USD with a gross gross revenue of $9.4 Billions (Reuters, 2013).3. Country BackgroundLouis Vuitton headquarters is situated in Paris, they had outspoken galore(postnominal) outlets all around the world and capital of capital of capital of capital of capital of Singapore direct 3 big outlets and the latest which located in Marina embayment Sands that open unique island store that will blow on the water. Singapore its a developed country which also tear tourist from early(a) countries to come to click as a traveler as well as shopper. The three outlets raise be found in Takashiwhitethorna, ION and Marina Bay sands.4. SWOT AnalysisSwot analysis be the shorten words of energy, helplessnesses, Opportunities and holy terrors. SWOT analysis are mainly utilize for a company to work up their outlets/manufacturing plant in overseas to extend their p roducts and profits.4.1 StrengthBrand Value ( the grunge is one of the oldest invent houses with to a greater extent than 150 years) easy recognizable (the logo and monogram)The brand has it own outlets in nearly of the large obtain center. Well known Designer utilization Tailored available for elite customers4.2 WeaknessThe Shops lonesome(prenominal) available in sole(prenominal) stores making it difficult for developing countries The most expensive price compare to other(a) competitorsRarely to give discounts to customers4.3 OpportunitiesThe company of necessity to make new current fashion write outsLarge market for luxury goods renown attractionsSynergy between brands/ uniter4.4 Threats financial crisisCompetitorsIncreased market for echoic productsResources are decreasing5. PEST analysis5.1 policy-making and legalThe anti-counterfeiting address agreement (ACTA) aims to uphold and international legal framework for targeting counterfeit goods. Where as in Singapore has go one of the biggest shopping country in Asia, furthermore Singapore is a bureaucratic country and extremely centralized, with 17% corporeal tax, less tax regimes investors are non subject tocapital gains tax, dividend tax, and foreign channelize controls (Mehamer, 2013). On august 9 1965 Singapore became and independent nation and consistently change magnitude their deliverance, by maintaining their productivity with a perpetual government and has severe laws in point and due to strict governance and associated fines less corruption, efficient and transparent government. Singapore has bedded the 1st in the global change trade world power and 18 FTA with commerce partners in their trade policy.5.2 EconomicSingapore itself strike a strong economy statistics. It was proveed and the data shown as vex rate0.2%, Growth rate 6.90%, idle Rate 2.10% and GDP per Capita $37,293 (Mehamer, 2013). This massive record shows that Singapore have strong reason economy in thei r government. Louis Vuitton with a sales of 7.2 billions in 2012 were involved in Singapore Trade to GDP ratio of 270.8%, and superior dependency on global market trends and fluctuations in macro economy.5.3 Socio-CulturalSingapore citizen with pure education and healthcare (Sirikan C, 2013). Literacy rate of 92.5% and a multitasking language where they lived as a multinational country that supports each citizens to speak 2 languages, as their mother tongue is mandarin orange or English. A signifi notifyt fortune of non-residents who lived in Singapore with a Gini coefficient index of 48.1 shows that Singaporean can easily alter with foreign where the employee of the company can act with customers behavior and promote their products relay on their cultures behavior and difference.5.4 TechnologicalIn the fail tens of years ago, engineering science in Singapore has a massive evolved of their needs. The growth of technology helps Louis Vuitton to communicate with their headqu arters, due the change of currency, products release, proceedings and supports more efficient. Furthermore it give a huge impact for both companies and countries to serious their times to manage their needs. Whereas Singapore had deform 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 New EntrantsLOWCompetitor GUCCI, Yves Saint-Lauren, Channel, Bally. jewelry Montblanc, Bulgari, Cartier, Officine Panerai.Even though LVMH have a strong many competitors sumptuosity goods, LVMH extend a strong and unique in their products such as utmost reference products, well service for every customers and brand appreciate. Furthermore, LVMH has no worries with their competitors they have a truehearted customers who constantly bought the products and advertise to their friends, longstanding perpetration to calibre and Investment necessitate woul d be extremely large for those who do businesses. in like manner that for a new goods brands wont give an impact to LVMH (Dang, 2013). 6.2 Bargaining Powers of SuppliersLOWFor a big company LVMH have a Suppliers and subcontractors are required to comply 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 juicyest quality needs (Dang, 2013).6.3 Bargaining Powers of CustomersLOWWith mark name and value customers had change by reversal the most incorruptible 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 pitch their products into the top trains and Louis Vuitton products are neer on sale.6.4 Threats of Substitute ProductsLOW lofty profile luxury goods LVMH brands have high quality products contrastingiations and believe. 6.5 Rivalry Among Competi torsModerateIn every company will always have their own competitors in this skid LVMH are working in Luxury industries in a big ordered series to have an competitors will always be a positive things to brought new ideas and trends, in fact competitors do not deceive 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 moderate its fruit of certain products from time to time, or producing special edition of the same handbag in different markets. LV product could become even more premium, force products for collection of limited editions, expend the trend by increasing the popularity by adverstiment. wanton 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 leather goods only becoming medical specialist in t heir 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 internal and extraneous 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(a) in Luxury markets sales is invariable jobs and it wasnt easy but they have to stable their sales and increase the value to become a premium brandReference ListConstant, J. (2012, 11 02). lvmh. Retrieved 01 14, 2014, from Louis Vuittonhttp//www.lvmh.com/investor-relations/lvmh-at-a-glance/executive-co mmittee/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, from 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 slip 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