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Louis Vuitton in Japan Case Study

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Unit Four Case Study Analysis
Kaplan University
School of Business
MT460 Management Policy and Strategy
Author: Jessica Rushing
Professor: Dr. Andryce Zurick
Date: May 18, 2015

Louis Vuitton in Japan
Company Name: Louis Vuitton
Topic of the Week: External and Global Environment
Synopsis of the Situation As of 2009, the Japanese market accounted for 45 percent of all luxury goods sold globally (Pearce & Robinson, 2013, p 14-11). Louis Vuitton preemptively identified Japan as a location that would help boost sales and brand loyalty, opening its first store in Japan in 1977 (Pearce & Robinson, 2013, p 14-14). The brand is facing some challenges as it attempts to continue seeing growth in the Japanese market. These challenges include competition, reduced location product availability, and counterfeit products to name a few. Due to the fact this country currently accounts for a large percentage of luxury goods being sold, the competition is at an all time high. Louis Vuitton faces challenges while battling rivals such as Bulgari, Gucci, Coach, and similar companies. Competition in the marketplace is a strong component of any company’s external environment. According to our text, an external environment includes, “the factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes (Pearce & Robinson, 2013, p 87). In addition, Louis Vuitton has limited its targeted demographic to individuals that can afford high-end luxury items. This forces an increased level of dependency on a booming economy, which can spell disaster for companies selling expensive items. One wrong turn within the walls of the global economy can influence the level of profitability on a whole. It is important for Louis Vuitton to identify alternative solutions that will allow…...

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