Business A SWOT Analysis On Luis Vuitton Fashion And Retail House - 550 Words

Business: A SWOT Analysis On Luis Vuitton Fashion And Retail House (Essay Sample) Content: Name Professor Course Date SWOT Analysis of Louis Vuitton. Louis Vuitton is a fashion and retail house founded by designer Luis Vuitton in the year 1854. The brand lapel of the company is shortened to LV, and it appears on most of its products. Presently, Luis Vuitton is one of the leading international fashion house ranging from luxury trunks to ready-to-wear products such as shoes, clothes, watches, jewelry, sunglasses, and accessories. The fashion house is headquartered in Paris, France and currently has 460 branches across the world. This paper seeks to perform a SWOT Analysis on Luis Vuitton fashion house to predict on the future success of the company. Strengths of Luis Vuitton Strengths are defined as what aspects each organization has that exclusively differentiates it from other businesses, and gives the company an upper hand over its competitors. The followings are the strengths of Louis Vuitton. * Brand Recognition: The brand of Luis Vuitton is high on recognition, and many people prefer buying and being associated with LV products as it brings status and class in the society. * Top Designers: Luis Vuitton comprises of highly competent and top design team of the world including Stephen Sprouse, Helmut Lang among others. * Exclusive Merchandise: Luis Vuitton is popularly known for unique and personalized products. This ensures that their products stands out and not carried by anyone else. * Extensive Network: Currently, Luis Vuitton has over a million employees across the world making it one of the top and high-end retail shop dealing with luxury goods. Weaknesses of Luis Vuitton Weaknesses are defined as areas where the business needs improvement. Some of the critical weakness of Luis Vuitton includes: * Exorbitant Pricing: Luis Vuitton products are very pricey making it difficult for the majority of people to acquire LV products. Thus, Luis Vuitton targets a niche market. * Lack of sensitivity to foreign cultures: Being a French fashion house, Luis Vuitton is not sensitive to trends in foreign cultures. * Too much reliance on the Japanese Market: Luis Vuitton has over 85% percent market segment in Japan, and this reduces the ability of the company to look for other markets. Opportunities for Luis Vuitton Opportunities refer to avenues by which a business can capitalize on to increase its profits margins, as well as grow. Some of the opportunities include: * Growing market potential: The potential growth for luxury goods in the global market is estimated at 4% percent per annum with a turnover of around 42 billion dollars. This is an excellent opportunity for Luis Vuitton and other luxury merchandise companies. * Rise in per capita income: There is a significant increase in per capita income in most countries across the world and consequently more disposable income. This is expe...