Product Development Analysis 2022

Running head: PRODUCT DEVELOPMENT
PRODUCT DEVELOPMENT
Name of the student
Name of the University
Author note

1PRODUCT DEVELOPMENT
Introduction
In the age of rapid globalization, international business organizations have sought to
increase the scope of their business operations through expansions into new markets. China
has been one of the most lucrative markets for organizations operating in the luxury industry,
as the purchasing power of the customers in country is significantly high due to its strong
GDP (Donzé and Fujioka 2015). However, the luxury brand LMVH has faced lower revenues
in China due to several factors such as slower rate of economic growth in the country and
thereby a reduction of disposable income of the customers (Bloomberg.com 2020). The essay
will further highlight the scope of development of new range of environment friendly and
natural luxury cosmetics in China.
Discussion
Product development is an effective strategy that can be adopted by LMVH in order
to increase the revenues of the company through their business operations in China. One such
product that can be effective in China is environment friendly and natural cosmetics. An
analysis of the strengths, weaknesses, opportunities and threats helps such business
organizations in strategy making processes.
SWOT Analysis
Strengths Weaknesses
 Positive global brand image and
identity
 High potential of the Chinese beauty
industry (Wu 2020)
 High standards of product quality
 High investment for product
development
 Investments in marketing the product
Opportunities Threats