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EUST2011 Assignment 4

EUST2011 Assignment 4 - conglomerate its network provides...

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During the economic recession from 2008 to 2009, every sector has contracted. The sales of luxury goods should be severely affected, but Louis Vuitton still had its resilience. This can be explained in terms of the four main elements in its business model – products, distribution, communication and price. First, LVMH changed its strategy from expanding their network to facilitating design and price. The people would purchase the goods with the best quality. LVMH has tried to improve and refresh their design of products by owning the license and adopting quality control to attract sales. Second, LVMH changed their target market. As LVMH is an international
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Unformatted text preview: conglomerate, its network provides the firm an opportunity to move poorly selling stocks to a better place, for example, from Japan to China. Also, LVMH did a lot in advertising. The fame of Louis Vuitton is so huge that almost all people in the globe must have heard it. It is because one of the main factors is its signature “Monogram” print which is easily recognized. Lastly, although the price of LVMH products has not changed much, the first three factors cover the influence of price. (200 words) Cliff Ng Chun Keung 2008206894 EUST2011 Reading Assignment 4...
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