1) How does luxury consumption in Japan differ from in other countries ? I guess the main difference is the fact that Japanese people consume luxury in mass. Or at least‚ they did. Indeed‚ Japan is the first and only mass luxury market. This behavior finds its origins in the need of showing their identity and self-worth‚ and they do it by wearing luxury products. In fact‚ as there is not much space and lots of traffic jams there‚ the Japanese can’t build huge houses and own many cars‚ as we‚
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Luxury stretching: a practice that has changed the sector Stretching has allowed luxury companies to grow more quickly‚ without being limited to growth in their luxury lines‚ or being restricted to growth in demand for the products of their original trade. Though many have departed from luxury‚ some have retained that status to their primary products. The practice of stretching is driven by financial need. While there is a high margin on luxury items‚ there is a low volume‚ and maintaining
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GUCCI’S COMPETITORS Some Gucci’s main competitors within the luxury industry include top brands in Italy and in the world‚ such as: Versace‚ Chanel‚ Prada‚ Louis Vuitton‚ Dior and Armani. Concerning the Italian market‚ I found interesting to analyze Versace Prada and Bottega Veneta as main competitors of Gucci and analyze the points in common and the differences. First‚ all these brands belong to an Italian heritage‚ even if Gucci and Prada were founded much earlier than Bottega Veneta (1967) and
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Euporia Knight Strategic Management Coach Case 1) What are the defining characteristics of the luxury goods industry? What is the industry like? Defining characteristic of the luxury goods industry are the market size and growth rate‚ scope of rivalry presence of forward/backward vertical integration Consumer characteristics Degree of product differentiation. The global luxury goods industry was expected to grow by 7% during 2006 to reach $112 billion. The scope of rivalry in the industry was
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Feedback notes on the Gucci case study Question 1: What are the unique features of a luxury goods supply chain in terms of demand characteristics? Product design and innovation drives demand Low visibility of future demand leads to order based rather than forecast based replenishment High value & margin products High level of new product introduction Short campaign cycles with high level of new product introduction Question 2: Analysing Gucci’s Supply Strategy Gucci supply strategy is focused
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ALTERNATIVES 1. Frog’s Leap Winery could apply a new strategy of trying to buy up smaller wineries and vineyards in an effort to gain some bargaining power over customers. This would be possible because it would hopefully decrease the overall supply of wine in the market to fulfill the customers’ demand. Also‚ this strategy could decrease the competition in the wine market. 2. To take advantage of the higher gross margins provided by direct sales to consumers‚ Frog’s Leap Winery could benefit from
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(1) I think it was a good decision for PepsiCo to adopt diversity as a strategic priority in 2001‚ because by encouraging executives to meet diversity-related objectives‚ the company could easily break down the barriers between employers and employees‚ especially between employers and minority employees. Diversity strategy gives managers a chance to perceive the attitudes of their employees. A close relationship between managers and employees makes employees consider their perceived performance level
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16 October 2012 Draft v1 Seitenzahlen einfügen‚ Inhaltsverzeichnis einfügen Pepsico’s Diversification Strategy in 2008 Discussion material 16 October 2012 16 October 2012 Draft v1 Contents Seitenzahlen einfügen Sections 1 2 3 4 5 6 7 Project Team Our understanding of PepsiCo Market / Industry analysis Financial analysis Portfolio analysis Recommendations Q&A 1 16 October 2012 Draft v1 2.1 PepsiCo Overview Overview n n n n Acquisitions n Formed in 1965:
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number of arguments in favor of the diversification of energy sources in Australia. Development based on fossil fuels make the climate changing a more serious problem. According to Harding(2008) industrialized countries have responsibility to recognize renewable energy solutions as a priority and reduce the dependency on fossil-fuel energy‚ for the reason that the development relianted on fossil fuels has caused climate change issues. Moreover‚ the diversification of energy sources is environmentally
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Chapter 8: Diversification: Strategies for Managing a Group of Businesses Diversification and Corporate Strategy A company is diversified when it is in two or more lines of business that operate in diverse market environments Strategy-making in a diversified company is a bigger picture exercise than crafting a strategy for a single line-of-business A diversified company needs a multi-industry‚ multi-business strategy A strategic action plan must be developed Screen graphics
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