Louis Vuitton's Market Analysis

This assignment examines Louis Vuitton's current market position and strategy within the luxury fashion industry. It utilizes Porter's Five Forces model to analyze the competitive landscape, bargaining power of buyers and suppliers, threat of new entrants and substitutes, and industry rivalry. The analysis highlights key challenges and opportunities for Louis Vuitton, emphasizing the need for strategic adjustments in response to evolving market dynamics. The assignment concludes with recommendations for enhancing Louis Vuitton's market share and profitability.

Strategy and change
management

Table of Contents
INTRODUCTION...........................................................................................................................1
1........................................................................................................................................................1
PESTLE analysis.........................................................................................................................1
2........................................................................................................................................................3
Porter's 5 force analysis for assessment of capabilities and resources........................................3
3. ......................................................................................................................................................4
Current strategy...........................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The strategy and change management is very important aspect which includes shifting of
a person, company and any current state (Norogrando and Mota, 2014). It is very important
element for every enterprise to eliminate monotonous things and developing of management
strategy. Present report is based on Louis Vuitton designer company which is French fashion
designer enterprise. In this context, report covers PESTLE analysis of the organisation.
1.
PESTLE analysis
In order to analysis the macro environment Louis Vuitton designer company is serving
personal luxury goods in their industry. It will assist to understand that how PESTLE factors
influence to the organisation (Hayes, 2014). This is because, strategy and change management is
considering through changes in external environment sources.
Political Factors
The chosen company faces many problems that are related to import duties to operate
functions in international market. In this aspect, LVDC need to sell their products and services at
high price. In addition to this, government stability is another political element that create impact
on terrorism. It will assist to make effective strategy and change management at workplace
(Goetsch and Davis, 2014).
Economic Factors
It is the another factor which create impact on industry due to high tax rates which being
placed on luxury goods of the cited firm. In addition to this, taxation policy is also boosted to
consumption of particular product and services that create impact on Louis Vuitton designer
company. Further, potential price gap can be a cause to uncontrollable issues. In this way, at
international market taxes can be reduce with enhance profitability and issues (Altamony,
Tarhini and Elyas, 2016).
Social Factors
Fashion industry is also diversified in services that are included luxury travel and
experiences. Thus, it creates major contribution of social factor in the industry with changing
shift as per customer preferences. Due to change in customer life style and experiences, Louis
Vuitton designer company cannot offer. Therefore, it creates negative impact on operations and
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functions of the enterprise. In respect to make strategy and change management, the chosen firm
need to concentrate on changes as per customer demand and requirements (Balogun, Jacobs and
Vaara, 2014).
Technological Factors
In respect to changes in internet and technology, the chosen organisation is impacted. For
attaining competitive advantages, Louis Vuitton designer company need to move towards online
selling of products and services. This is because, it will promote to provide products and services
with exclusive outcomes and reduce potentially market share from absolute target segment. In
addition to this, as per the customer demands in industry provide unique elements in products
and services. Hence, it can be stated that technology involving manufacturing that is not major
factor (Ocasio and Radoynovska, 2016). In order to make strategy and change management,
technology need to be enhance that promote to business results.
Environmental Factors
In order to operate function in environment, it is essential to protect it. It is the biggest
factor which create impact on industry. This is because, Louis Vuitton designer company is
operating in leather products as well. Thus, it is essential to involves high energy consumption to
eliminate dangerous chemicals. Due to this reason, the cited firm need to considers limiting their
carbon footprint and preserve to natural resources (Pugh, 2016). It will protect to environment
and their natural resources in effective manner. Hence, no harm is taking place which can
inflicting to the business.
Legal Factors
Being a fashion industry, there are various laws which need to be follow by Louis
Vuitton designer company. In this aspect, company can protect issues which can be impacted on
luxury products and services. The cited business is earning high so that it is important to follow
strategy and change management effectively to produce better results (Belias and Koustelios,
2014).
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2.
Porter's 5 force analysis for assessment of capabilities and resources
In respect to make effective results, luxury goods of Louis Vuitton designer company
also facing variety of competition. In this aspect following are such elements that create impact
on firm with strategy and change management:
Threat of new entrants (Extremely high)
In international market, there are various businesses that operate functions and operation
in fashion industry. Other companies has making their effective brand and quality with customer
experience and social status (Norogrando and Mota, 2014). This make effective industry and
evidence that are extremely profitable to produce better results. Due to enhancing in fashion
continuously, there are various businesses take place in international area to make high profits.
Strategy and change management put their strains on all competitors with enhancing quality and
brand of particular product and services.
Bargaining power of suppliers (Low/medium)
The chosen firm has no effective manufacturing products in their home so that minimal
material can hamper to Louis Vuitton designer company. The main reason of low bargaining
power of supplier is requirements of high quality raw-material (Altamony, Tarhini and Elyas,
2016). The chosen company is using leather products so that they require effective raw-material
to produce products.
Threat of substitute (High)
In the market, there are different types of substitute products available in market that
satisfy to customer. Thus, threat of substitute is very high which create intangible experience that
includes travelling and spas. Due to changes in customer express and their social status, other
businesses frame their products and services. Hence, cheap to manufacture would be hard for
luxury companies (Ocasio and Radoynovska, 2016).
Rivalry among existing competitors (High):
In order to provide products and services in fashion industry, in market there are more
than 100 players. In this aspect, more than 15 businesses extremely consolidated such as Prada
and many more other organisations. In strategy and change management, competitors enhance
their brand quality, customer experience and social status which shows clear evidence to the
extremely profitable.
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Bargaining power of buyers (Medium)
In order to analysis the market, it has been shown that price is not major concern
(Altamony, Tarhini and Elyas, 2016). Thus, it is shows that customers are prefers brand and they
are loyal as well. However, customer are emotional attachment with specific brand so that they
are demand unique product and services.
3.
Current strategy
From the above analysis, it could be justify that within the market Louis Vuitton designer
company need to use Porter's five forces model. It will assist to enhance market share through
analysis profitability and performances as per the customer requirements (Norogrando and Mota,
2014).
CONCLUSION
From the above report, it can be articulated that Louis Vuitton designer company facing
various issues with strategy and change management. In this aspect, report summarized about
their external environment analysis that assist to find out impact to operate functions in
international market.
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REFERENCES
Books and Journals
Altamony, H., Tarhini, A. and Elyas, T., 2016. The relationship between change management
strategy and successful enterprise resource planning (ERP) implementations: A
theoretical perspective. International Journal of Business Management and Economic
Research. 7(4). pp.690-703.
Balogun, J., Jacobs, C. and Vaara, E., 2014. Placing strategy discourse in context:
Sociomateriality, sensemaking, and power. Journal of Management Studies. 51(2).
pp.175-201.
Belias, D. and Koustelios, A., 2014. The impact of leadership and change management strategy
on organizational culture. European scientific journal. 10(7).
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Norogrando, R. and Mota, J. A., 2014. Fashion Design at V&A. Museum Studies, Case IV.
Blucher Design Proceedings. 1(5). pp.38-39.
Ocasio, W. and Radoynovska, N., 2016. Strategy and commitments to institutional logics:
Organizational heterogeneity in business models and governance. Strategic Organization.
14(4). pp.287-309.
Pugh, L., 2016. Change management in information services. Routledge.
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