The changes in taste of middle class shoppers from affordable luxury items to high class luxury fashion items creates high risks on the affordable fashion industry. However, this aspect could also create opportunities of growth for the industry to rise up to standards expected by these middle class shoppers in targeted markets. Many companies in the luxury goods market look for outsourcing to reduce the costs of manufacturing their goods, however, outsourcing is not well perceived by the public due to the uncertainty regarding the individuals working in these remote locations. Therefore, luxury brands should verify and inform their shoppers of the exact locations and identities of their workers in these locations. Political issues affecting the affordable and luxurious fashion markets are affected by United States elections.
Key success factors (KSF) are the attributes in the business’s products, process, technology, etc. that puts the firm in a superior position over the competitors. Analysing the environment of Coach Inc., following conclusions can be made about its KSF: • Distinctive & broad product line: product distinction is a key characteristic of the luxury goods industry. Because of the fact that the buyers of luxury goods tend to differentiate themselves from other individuals, there is a high need of differentiation. Every competitor therefore targets a differentiation strategy that is realized by diverse meanings.
Investing in a property blindly Many investors make the mistake of buying properties based on bad advice. They have little education to make the decision on their own. As a result, they fail to make right investment decisions and invest in wrong properties that don’t prove much profitable in the future. So, if you want to become a successful investor, you should spend enough time on educating yourself so that you can make the decision confidently. Thus, you will be able to gain high profit with comparatively less
The consumer would not take it lightly, if LV would move its factories to cheaper countries or its shops to cheaper streets. LV also has some distinct resources that make it different from its competitors. First of all, it is the color scheme and the logo. They make the brand different and unique. The designers can also be seen as the distinctive competence, although only the top designers are deserving of the title.
Economic limitations Economic conditions are critical for strategic planning, as it affects not only the size and attractiveness of markets that the company serves, but the capacity to serve them profitably. This may limit the level of resources that companies can use to try to meet demand. The shortage of raw materials, energy costs and credit may impose significant limitations on the ability of a business to develop new products to maintain inventories or to invest in new production facilities. France is not a country that promotes imports, mainly because it hurts the job prospects and wages of less skilled workers, and because it fears it will diminish its distinctive culture. Therefore, there is a high import/export cost in France.
A hotel will be subject to powerful buyers only if its marketing strategy concentrates on attracting tour groups, provided no oversupply for the hotel’s target market develops. Hence substitute products are not a major threat to hotel industry as a whole. 3) Bargaining Power of Suppliers In most commonly the only supplier which might exercise power over any company would be labor and experienced trained personnel, which is in great demand in the Hotel industry all over the world. Hotels are not significantly subject to the bargaining power of their suppliers and suffer low levels of indirect pressure on their competitiveness from this source in relation to other industries. In order to sustain in the market hotels will have to maintain permanent cost advantage over potential competitors in higher strategic groups.
I.T has low price sensitivity on vendors as raising prices would not affect much on its preference on their fashion style. About the buyers of I.T, they have high bargaining power as well. There are lots of competitors in the market, examples including ZARA and h&m. They all sell clothes, which mean there are lots of substitutes of I.T. Buyers of I.T therefore has high price sensitivity, when I.T raises the prices of their products, buyers will turn to its competitors.
Many fashion brands have adjusted to marketing since it a major key to the success of a company. For example, Louis Vuitton had a very specific formula for the marketing strategy as stated by luxury brand expert Danna Thomas. The formula consists of a pyramid; on bottom we have the most affordable items such as belts, keychains, and wallets. However, this is where the company makes the most profit in. In the middle, we have items that not as affordable, however, not exclusive.
Convincing customers to make a re-buy and change this relationship into a loyal customer is also very costly. Customer loyalty creates a lot of benefits for the companies. These include lower costs associated with retaining existing customers, rather than constantly recruiting new ones especially within mature, competitive markets (Ehrenberg and Goodhardt, 2000). But the effect of these benefits can differ per industry. Therefore this research in the footwear industry tries to find out how customers reaction will be by an increase of price.
Ordinarily the customer does not know much about the item class and has much to learn. Dissonance-Reducing buying behavior happens when customers are exceptionally required with a costly, rare, or dangerous buy yet observe little distinction among brands. For instance, buyers purchasing covering may confront a high contribution choice since covering is costly and self-expressive. After the buy, shoppers may encounter post buy cacophony (feel of disappointment) when they see certain detriments of the bought thing or hear good things about the other unselected