Louis Vuitton is a luxury fashion brand that has grown to become one of the world’s most recognizable and sought-after brands. The brand has a long-standing reputation for excellence and quality. This essay provides a personal opinion on Louis Vuitton’s customers, strategy, technology, operations, and culture.
Customer
Louis Vuitton has controlled and led the fashion industry with its quality and luxury brands for many years. The company’s success is attributed to the strong brand image and loyalty among brands due to the customer satisfaction and experience that it provides. However, the company must enhance its business strategy to remain competitive and promote sustainable competitive advantage and growth. The fashion industry is ever-changing, and businesses should ensure that they encourage and invest more in increasing customer engagement and experiences. Expanding customer engagement and experiences improves the company’s bottom line and helps promote the brand’s growth and development (Bazi et al., 2020). Customer engagement is critical to the long-term success of any business. Focusing on customer insights and behavior is essential to understanding customers’ needs and creating strategies that drive customer engagement.
Louis Vuitton should create meaningful customer experiences while improving customer trust and perception. Louis Vuitton should increase their focus on customer insights through customer feedback, surveys, and tracking customer behavior and usage data. They should focus on creating personalized customer experiences (Bazi et al., 2020). Louis Vuitton should strive to build customer trust by demonstrating transparency and engaging in two-way communication. This is done by timely responding to customer feedback and complaints and providing clear, consistent information about their products and services.
Conversely, Louis Vuitton must create a string loyalty program that rewards customers for their continued patronage. The company must enhance customer engagement by offering exclusive discounts, rewards, and points for customers who purchase frequently. This provides unique experiences for loyal customers. Therefore through customer engagement, customer experience, customer insights and behavior, and customer trust and perception, Louis Vuitton has an opportunity of building a solid and loyal customer base for years to come.
Strategy
Nevertheless, Louis Vuitton should promote its sustainable competitive advantage by improving its brand management, ecosystem management, finance, investment, market intelligence, portfolio innovation, strategic management, and business assurance. Staying relevant for Louis Vuitton is critical because they offer a luxury brand that attracts stiff competition from other big fashion brands. Therefore it should focus on its brand management by increasing its digital presence. The company needs to engage with the customers by creating a high-quality website, utilizing innovative digital marketing strategies, and engaging influencers. Also, they need to create meaningful relationships with their customers by providing personalized services and allowing customers to provide feedback on their products.
Louis Vuitton should improve its ecosystem management by promoting supply chain sustainability. The company needs to ensure that the products are well-sourced and that the quality of the material is maintained in the supply chain. This helps the company meet market demand and improve its brand quality and identity (Jia & Ran, 2021). The company should improve ecosystem management by addressing societal issues by promoting corporate social responsibility and governance. The world is battling climate change, and many institutions are putting measures in place to deal with the effects of global warming. Therefore Louis Vuitton should contribute to this initiative and solution by reducing their carbon footprints by using renewable energy and ensuring their products are eco-friendly.
Similarly, Louis Vuitton needs to focus on their finance and investment. They need to manage their finances responsibly and transparently and invest wisely. Also, they need to diversify their investments to stay afloat during uncertain times. The market’s competitive nature makes it critical for the company to enhance its research and development initiatives (Jia & Ran, 2021). This makes sure that they stay up to date with the current trends. Market intelligence enhances sustainable business by ensuring that the company meets the needs and demands of the market and creates innovative products.
Also, on the issue of portfolio innovation Louis Vuitton has an opportunity of attracting more customers by creating new innovative products. Louis Vuitton has maintained its luxury brand, thus attracting the high income earners market segment. However, they need to expand to other market demographics and targets to cater to different customer needs by diversifying their portfolio. Also, they need to improve their strategic management and business assurance by ensuring that their strategies are well-planned and that their business operations run smoothly and efficiently. They should focus on ensuring their business complies with relevant regulations and standards.
Technology
Technological advances in the market make it critical for institution to integrate technology into their operations in order to sustain their competitive advantage. Louis Vuitton has achieved some milestones in utilizing technology but needs improvement in some areas. It is critical for the company to protect its brand reputation through prioritizing data security by expanding its technology infrastructure and security protocols (DeAcetis, 2020). The company needs to enhance data management through investing in cloud-based platforms and applications. Data management helps the company to use its resources effectively and allows greater scalability.
In addition, Louis Vuitton competitive advantage sustainability makes it critical for the company to facilitate communication and collaboration through expanding its technology architecture. This is critical because the company has various departments which deal with different roles and responsibilities. Therefore slight miscommunication in the production process can affect the brand reputation and delay the delivery of the products in the market. The company should ensure there is consistency in its production and should become reliable in the market through on time deliveries in order to protect and improve its brand reputation (DeAcetis, 2020). Facilitating communication and collaboration allows the company to respond more quickly to customer demands and adapt to new market conditions. Also it is critical for the company to build strong partnerships with other leading technology companies. This ensures that the company is able to access cutting-edge technology and the ability to leverage powerful software and hardware platforms.
Operations
Louis Vuitton implements an agile change management strategy, integrated service management, real-time insights and analytics, and smart process management to stay up to date with the latest developments in order to remain competitive. Implementation of strategies helps the company remain agile and responsive in a quickly changing environment (Grocholski, 2022). However, the company needs to implement an overarching change management strategy tailored to its specific needs instead of using generic models. It needs to maintain a focus on customer service by ensuring meeting customers’ needs n time and efficiently. The company needs a system which promotes stakeholder engagement, a system of communication and feedback and a process of tracking and measuring progress (Grocholski, 2022). The system should concentrate on customer service, problem resolution and service delivery by focusing on customer feedback, customer segmentation and customer experience.
Moreover, Louis Vuitton should enhance its investment in real-time insights and analytics. This ensures that the company gains a better understanding of its customers and the trends in the fashion industry. Also, the company should strive to make its processes more efficient, leveraging technology to streamline operations and reduce costs. Finally, Louis Vuitton should continue to focus on developing a culture of innovation and creativity (Grocholski, 2022). This allows the company to stay ahead of the curve and remain competitive. The company should ensure that it makes its decision and strategic planning through using predictive analytics and data analysis. The company needs to increase performance and promote competitive advantage sustainability by developing a culture of innovation and collaboration.
Culture
Louis Vuitton success drivers are its leadership and culture, standards and governance, and employee enablement. However, the company should continue improving and developing these factors and address its weaknesses in order to enhance its competitive sustainability. Louis Vuitton utilizes a strong leadership and innovative culture in promoting business growth and development sustainability. However, the company must focus on developing a culture that is more inclusive and empowering to its employees. It should provide more opportunities for career development and invest in employee engagement initiatives that foster a sense of belonging. Louis Vuitton should encourage its leaders to embrace change and recognize the value of diversity in order to create a more innovative and dynamic culture.
Conversely Louis Vuitton should reinforce its standards and governance practices periodically. This enables the company to become compliant with the different rules and regulations and also to reflect new trends and technologies. Also it should invest in ways to measure the effectiveness of its standards and governance practices and ensure that they are consistently meeting the company’s goals.
Finally, Louis Vuitton should continue to prioritize employee enablement. It should provide training and development opportunities that equip employees with the skills and knowledge they need to succeed. Also, the company should invest in employee recognition programs and other initiatives that foster a sense of belonging and appreciation. Therefore, Louis Vuitton has an opportunity of retaining its employees and ensure that they are engaged and motivated to perform their best.
References
Bazi, S., Filieri, R., & Gorton, M. (2020). Customers’ motivation to engage with luxury brands on social media. Journal of Business Research, 112, 223–235. https://doi.org/10.1016/j.jbusres.2020.02.032
DeAcetis, J. (2020). How technology is helping luxury fashion brands gain traction. Forbes. Retrieved from https://www.forbes.com/sites/josephdeacetis/2020/10/04/how-technology-is-helping-luxury-fashion-brands-to-gain-traction/?sh=11c3399a3640
Grocholski, E. (2022). Scentia International Economic Review. SCENTIA International Economic Review. Retrieved from https://www.scentia-review.com/index.php/SIER/article/view/26
Jia, W., & Ran, H. (2021). The analysis of Brand Co-branding strategy. Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021). https://doi.org/10.2991/assehr.k.211209.254
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