90.
Award: 1.00 point
Flipkart’s acceptance of customer returns, cash on delivery, same-day delivery, and diversification in many product categories in comparison to what
Amazon does, exemplifies a difference in their
venture strategy.
crossing the chasm.
business model.
economies of scale.
power of suppliers.
The minicase clearly identifies these differences as reflective of a business model unique to Indian e-commerce challenges.
References
Multiple Choice
Difficulty: 2 Medium
Learning Objective: 05-06 Outline how business models put
strategy into action.
91.
Award: 1.00 point
Flipkart’s “deep understanding”’ of the Indian ecommerce market and focus on competing in India relates to which concept in international strategy?
Simple structure
Ethics
Focal industry rivalry
Death of distance
Localization
Flipkart has focused on a single versus international market giving it an advantage over larger multinational firms, such as Amazon.
References
Multiple Choice
Difficulty: 3 Hard
Learning Objective: 10-05 Apply the integration-responsiveness
framework to evaluate the four different strategies MNEs can
pursue when competing globally.
LVMH in China: Cracks Its Empire of Desire?
Louis Vuitton, commonly known as LVMH, has experienced huge success in its Chinese market due to the ever-present and ever-popular trend of Chinese
consumers seeking luxury status symbols. Counterfeiting and raised awareness of government corruption caused a standstill in the Chinese market until
LVMH launched the Shanghai Maison with invitation-only floors, helping to regain the intrigue of the luxury Louis Vuitton image.
Read the minicase below and answer the questions that follow.
In July 2012, Louis Vuitton, the flagship brand of France’s Moët Hennessy Louis Vuitton S.A., better known as LVMH, opened its 16th global Maison at
Shanghai’s Plaza 66, a huge luxury mall. The Shanghai Maison would house the entire range of Louis Vuitton collections and multiple contemporary
artworks created by Chinese and international artists. The grand opening of the Shanghai Maison also coincided with the 20th anniversary of the brand’s
presence in China; Louis Vuitton opened its first store in the country in 1992, in Beijing’s Peninsula Hotel. Indeed, sales in Asia (excluding Japan) accounted
for one-third of total revenue by the end of the first quarter of 2015, making Asia LVMH’s largest region in terms of revenues (see Exhibit MC24.1).1 When
focusing on countries rather than regions, China is already the world’s biggest luxury market (Exhibit MC24.2), having achieved an average annual growth
rate of close to 20 percent from 2007 to 2014.
Louis Vuitton loves China; the Chinese love Louis Vuitton too, perhaps even more. In a recent Chinese luxury consumer survey published by the Hurun
Research Institute, Louis Vuitton topped the list as the number one and number two preferred luxury brand by Chinese men and women, respectively.
