Having carried a swot analysis for Louis Vuitton Company limited, I managed to identify the various strength of this company, its weaknesses, and opportunities that the enterprise has and can easily venture into (Lerouge, Tulu, et, al.2010, 100). The threats that the firm is exposed to were also identified. After carrying out this swot analysis, I came up with various recommendations that the company can view and use appropriately to ensure that the firm runs correctly and makes a good profit. A swot analysis is paramount to a company provided that the firm takes its recommendations very seriously. It is very necessary for the business.
During the initial stages of swot analysis, the strengths of the company were first sorted out. The first strength to be identified is advertisements. The company is said to have very strategic advertising procedures. The company has invested much in modern methods of publication. These methods reach more customers. This shows that the company gets a lot of clients thus the profit enjoyed is much high (Esteban, Canado, et, al.2004, 124). My recommendations to this the company on the advertisement techniques. I advise the company to opt the modern methods of advertisement for example uses of televisions, posters, radios, social networks, and use of sale persons.
Strength of the Louis Vuitton Company
The collaboration of a company with other businesses is a great milestone. The partnership between the companies influences positively and negatively on both companies. The company as observed has cooperated with various other companies and partners in its operation. The company has collaborated with distributors of their products, suppliers of raw materials, and also other people like banks. The collaboration of these corporations and other businesses agreeing to do work together has a great impact on the companies involved. The companies live symbiotically such that every business benefits from the other. Every business enjoys the benefit of participation in this collaboration. Louis Vuitton Company should ensure that it makes sure it collaborates with other business persons, enterprises, and organizations for the welfare of the company (Esteban, Canado, et, al.2004, 130). By having many collaborations, the company is exposed to many customers thus increase in sales. Also, the company operations are eased for example the company does not need to distribute its goods it only needs to collaborate with companies involved in the distribution of assets. In another example, a company does not need to advertise for itself, it just needs to work with advertising companies, and this will reduce the company's expenses and save the companies time too.
Another strength of the business that was identified was working closely with retailers. Once a company collaborates with retailers, the company is sure not to suffer the expenses of transportation of goods. The company has enjoyed many years of good working conditions with retailers. The Company has many retailers who acquire products from the enterprise. The retailers also reduce the cost of storing goods because once they purchase products; they save in their stores thus relieving the company of the storage problem (Leigh, Pershing, ET, al.2012, 1108). The company should ensure that a good relationship with retailers is withheld. The retailers should get goods at much-discounted prices so as to promote them to buy products from the enterprise.
Various weaknesses were found about the company after carrying out the swot analysis. These shortcomings include an increase of counterfeit in the market. This has been a result of the company's failure to keep operations secret and safe (Passow, Glarhow, et, al.2010, 306). For example, revealing the raw materials, they use in the production of those goods. The availability of these fake products in the market renders the company to be customer-less. This is because the people doing counterfeit will prepare poor quality goods as they try to be economical and this will lead to customers hating the products. The company should ensure that anybody accused of counterfeiting must face the exact color of law. Also, the company should also be less lenient in showing their various ways of manufacturing their goods as this exposes people to the idea of manufacturing.
The company has many opportunities that it can invest in (Zaman, 2010, 1-2). These opportunities include continuous innovation and supports. The company can urge its employees to be thinking critically, and this will help in improving the business operations. By having innovations, the works are done in the enterprise reduce, and also there is the reduction of manpower, and this is so economical for the company. In other cases, the company can come with other ways of advertising their goods like holding web conferences on Facebook and other social media. The company can identify problems affecting the business potential in its operation. Through innovation, the company thinks and defines the latest methods to solve problems. The company also has also gained a lot of support from the community as a whole. The company is backed by all means as observed by its large number of customers (Passow, Glarhow, et, al.2010, 308-310). The company should identify the various methods that it can use to promote business. The company should use modern methods of customer service like engaging customers in an online platform. This shows that the firm can get international clients. Another opportunity is the presence of celebrities in Asian countries. This demonstrates that the market of these goods safe could increase because of the limited supply of goods. I would urge the company to make sure that it gets access to these celebrities and sell them their products. This will eventually increase the number of customers.
Threats to the company were identified. These threats include competitors, burning of items rather than selling them (Passow, Glarhow, ET, al.2010, 310-312). Also, counterfeits of goods were recognized as a threat to the business.it was observed there was a rise in the number of companies venturing into this business of fashion and clothes .this high level of competition leads to reduce the number of customers .also the competitors seem to reduce their price of goods with the aim of kicking Louis Vuitton Company limited out of the business. The company should think of favorable other methods of completion; they should look at the competitors' techniques and use them in establishing themselves. By doing this, if they do this, they are sure that the level of achievement will go down.
Another threat is the company's behavior of burning goods that failed to meet the production; this makes a company suffer from financial constraints. The company makes minimal profits, and this is such a threat to this business. (Esteban, Canado, et, al.2004, 136)Putting all matters into consideration, goods that seem to be of low quality should be so cheap rather than burning them. Law is another threat in which it is very alert to view the misuse of the law by the company. The company should ensure it works in a legally allowed platform and failure to do so may make the business suffer from heavy fines, closure, or both.
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a new strategic planning tool. Journal of Business Strategy, 33(2), pp.12-21.
Chermack, T.J. and Kasshanna, B.K., 2007. The use and misuse of SWOT analysis and implications for HRD professionals. Human Resource Development International, 10(4), pp.383-399.
Esteban, A.A. and Canado, M.L.P., 2004. Making the case method work in teaching Business English: a case study. English for Specific Purposes, 23(2), pp.137-161.
Leigh, D. and Pershing, A.J., 2006. SWOT analysis. The handbook of human performance technology, pp.1089-1108.
LeRouge, C., Tulu, B. and Forducey, P., 2010. The business of telemedicine: strategy primer. Telemedicine and e-Health, 16(8), pp.898-909.
Passow, T., Fehlmann, R. and Grahlow, H., 2005. Country reputation from measurement to management: The case of Liechtenstein. Corporate Reputation Review, 7(4), pp.309-326.
Zaman, K., 2011. Review of Pakistan pharmaceutical industry: SWOT analysis. International Journal of Business and Information Technology, 1(2).
If you are the original author of this essay and no longer wish to have it published on the SuperbGrade website, please click below to request its removal:
- Work-Related Stress Problem
- Defining Training With Respect to Workplace Discipline
- Call Centers Experience of the Highest Employee Turnover Rates - Research Essay Sample
- Single Member Companies
- Essay on Organizational Development and Human Resources
- Cost of Equity for Nike Using Both the CAPM
- Reflective Essay on Effects of Training, Empathy, and Leadership in Customer Service Delivery