Case Study 3.docx - Running Head MINI CASE STUDY#3 1...

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Running Head : MINI CASE STUDY #3 1 Davenport University MGMT 440
MINI CASE STUDY #2 2 Louis Vuitton or LVMH is a prestigious brand that I think almost anyone would recognize. They strive to be for the elite but their products are becoming more affordable to the middle class. You can go almost anywhere these days and see someone carrying one of their bags. This over saturation in the Chinese market is what is going to drive down this prestigious brand Question # 1 I think LV has been so successful in China because it’s a brand you will recognize. With the large monogram LV on so many of their bags is hard to not recognize. When you buy luxury brands you want to be seen. Being able to afford their bags shows your status to the world. With LV growing so fast in China they are going to over saturate the market and making them not as desirable. When you know you have one of a thousand bags made in total, makes them more valuable and the owner feel even more elite. I think that LV should become more exclusive again and make it harder to get their bags, this way people would be more willing to pay a higher price if they knew there were only a limited number made (Rothaermel, 2017). Questions # 2 LV is losing its competitive advantage in the high end luxury market. With more and more people being able to by the brand it is bring down the exclusiveness to the brand. Some suggestions I have for

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