Answer from Case Study
Louis Vuitton Case Part 2 Strategic Analysis – General Segments
Louis Vuitton as a business entity has taken different strategic steps to ensure that its products obtain a good percentage of the market. Technology advancements have played the biggest role in the company’s approach with other measures in place too. The decision of whether or not a move is critical is based on the feedback and inquiries from the existent and potential clients received by the online department. Admittedly, the online sales made products available on more markets and to a larger number of customers (p 172).
The technological approach used has been the major boost giving advantage in comparison to alternatives available. The business has widened its scope and market size across different regions of the world. Most clients received the possibility to access products online by visiting companies’ sites during the period of 2010 and 2011. On the other hand, such approach is considered to expand competition between entities of the same nature trying to meet the demands of the market. The advantage of using advanced technologies reduces risks of generating unnecessary products that are unfit for the end users. The essence of such approach means that it can receive comments and new ideas on a large scale to satisfy similar customers’ needs in the future (p 168).
However, the danger that comes with such approach in the business world is that the company would not be in a position to deal with complaints and recommendations by itself. A competing company might access the site and give recommendations that may deter the rival’s business. In this sense, misdirection may be adopted as a view supported by the general market yet it is a corporate sabotage strategy by the competing business. The company has to take a precautionary approach to ensure what is recommended by unknown clients is sieved through before any decisions are taken and implemented (p 173).
Louis Vuitton Case Part 2 Strategic Analysis – 5 Force
Competition from other well-established brands entering the business has affected the market size of Louis Vuitton. Other products from different companies have ensured that Louis come up with better options to attract more clients. Technology is viewed as an industrial aspect that determines the competitiveness of a company on the market. Louis Vuitton as seen in its current status has challenged the workers to adopt the manner in which the market can be reached to facilitate maximum production. Amidst the demographic, sociocultural, political/legal, economic and global issues surrounding a business, adaptation to changes in technology is the most favorable aspect (p 43).
The changes in the political or legal aspects of using technology in different parts of the world affect greatly the profit outcome of companies counting on technology as the key approach. Different countries have different approaches towards the use of technology in their regions, thereby favoring different kinds of business. Since Luis Vuitton has branches across the world, it has to adhere to many different rules and regulations. This will essentially mean that the different stores will accumulate different revenues for the mother business. The demographics and sociocultural beliefs of a given region also create instability in terms of profits if the input and output are not balanced. A high population access to technology will mean a wider access to products and services, which in its turn ensures that the company with the best technological tactics will serve more users. On the other hand, sociocultural aspects of a given community that is liberal to changes will encourage the same. The global perspective of the company will also influence its final profits in the sense that positive acceptance, unlike negative, will mean more money. Each entry will have to acquire a global perspective to sustain pressure in the market (p 46).
The technological approach will materialize as an advantage to the company if all the five aspects merge creating a positive influence.