Recommendations of Lvmh New Generation New Image Case Solution

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Recommendations of Lvmh New Generation New Image Case Study Help

RecommendationsOn the basis of above internal and external analysis of the business in addition to the evaluation of different alternatives, the company is advised to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its regional earnings and any degeneration of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand uniqueness. It might also think about alternative 2 that might enable the company to access the markets without any prospective investment. Although, the business might pursue alternative 1 which would enable the business to focus on prospective global markets instead of the local markets but as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in business's earnings. For that reason, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lvmh New Generation New Image Case Help Stores

International SegmentsGrowth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the worldwide existence of the company. However, the closing of domestic stores could extremely impact the incomes of the company as above 90% of its shops are located locally and closing those shops would ultimately minimize the profits of the firm. Furthermore, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would help the business to broaden in international markets together with the elimination of concerns raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;


• Expedition of brand-new international markets.
• Boost in earnings from global markets.
• Elimination of issues associated with diversity.
• Income diversification.
• Step towards being a strong international brand name.


• Loss of substantial incomes from the regional markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Lvmh New Generation New Image Case Analysis Stores

Alternative 2 includes the introduction of online market places through generating a proper company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious danger to the marketplace share of company. Furthermore, the competitors are moving towards click and Recommendations of Lvmh New Generation New Image Case Analysis stores with Space introducing Piperline. This shift towards online markets could decrease the incomes for company. In this circumstance the company might consider presenting Click and Recommendations of Lvmh New Generation New Image Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;


• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance


• Hazard to the market position
• Removal of brand name Originality
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the business might consider, is to expand towards the global markets without closing its domestic shops that adds to the major part of revenues of the business. The pros and cons connected to Alternative 3 are offered listed below;


• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Exploration of new worldwide markets.
• Boost in income from international markets.
• Earnings diversity.
• Action towards being a strong worldwide brand.


• Continuation of concerns connected to variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.

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