Company Corporate And Business Strategy

I think that if GE stays the course with innovative, ground breaking technology and development, investing in greener more efficient materials and

Describe Tartan 's competitive strategy. On the basis of this competitive strategy, what recommendation would you make to task force?

In this paper I will discuss Macy’s Incorporated by analyzing their business level strategies to determine which I think is the most important to their long term success and if I think it is a good choice. I will analyze their corporate level strategies to determine which I think is the most important and whether or not I believe it is a good choice. I will analyze the competitive environment to determine the corporations’ most significant competitor and compare the two companies’ strategies at each level and evaluate which company I think is most likely to succeed in the long term. Once the

Degree of Rivalry: The degree of rivalry is moderate in the global personal luxury goods industry. The industry is very concentrated and occupied by few large players. These companies do not need compete with price; however, they have high overlap of products’ category. Most of companies have several common characteristics. They have long history and start business in Europe areas; they all provide exclusive products and services backed by their brands; and they all served few amount of wealthiest customers over the world.

Finally, LVMH must protect its brand against counterfeit and dilution. With the recent expansion of the internet and globalization, availability of products has grown to new heights. In order to keep the brand management that LVMH desires, it must tightly control the availability so not to dilute the market and lower the perception of their brand. Also with the increased knowledge and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality. The situation of LV in Japan seems to be fierce, however, with effective solutions, LV can also seize the opportunity to sustain profitability in Japanese market rather than just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Vuitton. Therefore, to solve this problem and attract more customers, LV should strive to make “inexpensive” products by increasing the value of products, lowering the costs and prices, and finally creating high value for the consumers. As the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.

Before we can talk about the Strategy Hudson Bay uses we must first answer the the question of what a Corporate and Business Strategy is and how The Bay inaugurates this into their company;

The following case analysis will assess Coach Inc. and its strategy in the accessible luxury brand goods market. The coach strategy focuses on its luxury rivals in matching key quality styles while offering it at a cheaper price. The company offers most products at a 50% off discount price less than other brands which gives them a competitive advantage pertaining to its customer base. Coach marketed its products to middle –income consumers desiring taste of luxury, but also affluent and wealthy consumers with means to spend considerably more on a handbag (Gamble, 2012. P.C-73) .The Company also has several other strategies such as to increase global distribution, improve same store sales productivity and continue its multi-channel business model which includes indirect whole sales to third party retailers but also focuses on direct consumer sales. Coach has done well in the luxury goods industry but the companies profit margin is still below the levels achieved prior to the onset of a slowing economy in 2007 ( Gamble, 2012. P.C-73.The Company had experienced a decline in sales as they are unsure if the company recent growth could remain constant and maintain their competitive advantage with other successful luxury lines Michael Kors, Salvatore Ferragamo, Prada and Dolce & Gabbana.

Q1. How did Sony become a diversified company? What was the rational for entering the entertainment sector? Was it a good choice?

Leather goods are the core of Louis Vuitton (11); this is what LVs reputation is based upon for over 162 years. (1) At the high end of the market, brands tended to compete more through product design, the buying experience and brand image rather than through price. (6) In order to achieve this, LV invested heavily in advertising to build their brand, product design and develop unique products. (6) Furthermore, to distinguish LV from its competitors many of its stores had an area reserved for the best customer to shop in privacy. In some cities, LV owned private apartments and yachts, which included amenities such as butler service, where customers would be given design consultations and could be fitted.(9) By providing an added shopping experience to the customers, it would make them feel valued resulting in them coming back to LV. In addition, all stores were designed in France to communicate their tradition and heritage as well as to provide a unique experience of opulence and luxury. This store design allowed for a common brand image across them. As a result it is hard for LV to be substituted or for companies to enter the market. Wealthy individuals expect the best quality for themselves no matter what it cost. New entrants would need to have high capital, strong reputation, the best quality, and a historic heritage which LV and other established companies nursed. LVMH competed in the global personal luxury goods industry which had projected revenues of €212

Thereby, LV attains the position of becoming the leader of luxury leather and fashion accessories in the industry.

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]

The following readings are important for the literature review to meet the objectives of the current study. Chevalier and Lu (2011) provided a comprehensive overview of the china luxury market and its customer base. This reading also provides considerable knowledge about the opportunities and challenges present in the Chinese luxury market for international and Chinese luxury brands. The luxury brands are facing problems and complexities in China due to implication of tax and other regulations of the state. Despite very high growth rate, the luxury brands are facing difficulties of evaluation and inappropriate organization in the supermarkets and department stores of China. Lu (2011) explored the consumption of luxury goosd by China’s elite and their behavior towards these goods. The luxury products are purchased for the personal pleasure and comforts. The luxury products that are used in China are largely imported to the countries of United Kingdom and Spain. These countries trade in the various luxury brands such as accessories, perfumes, cosmetics, products, fashion clothes, footwear etc.

Most luxury brands have been family-owned or -controlled and, consequently, were single-brand firms for the most part. However, mergers and acquisitions have been growing in the industry, with LVMH leading the way. Our strategic recommendation is to follow LVMH’s lead and acquire a multitude of diverse companies to build the Gucci portfolio.