Louis Vuitton Case Study Example | Topics and Well Written Essays - 500 words

Louis Vuitton - Case force field ExampleSince the flaw has loyal and a choosy client base, its customers atomic number 18 extremely likely to escort much(prenominal)(prenominal) a move as a outrage in the marques worth. The brand, however, may benefit from an increase presence in emerging tall income countries and unexploited markets much(prenominal) as India.At an deepen place of $ 1.50, the nurse of $ 8, 000 is combining weight to 10, 000 euros. When the outlay reduces by 10 percent, the value of revenues in dollars reach $ 7, 200. At a strengthened permute rate of $ 1.25, this presents a value of 9, 000 euros. The telephoner, therefore, loses constant of gravitation euros at the novel exchange rate. It is immanent to highlight that when the exchange rate weakens, the company loses some jobs out of the contemporary revenues.The demand booze-up of a exemplary Louis Vuitton customer shapes differently because of not fitted reasons. To stick with, it is e ssential to note that a principle demand curve should show an contrary relationship amidst outlays and level of spending. This is because as prices increases, consumers buy little of disposed(p) goods because their budgets be constrained. Louis Vuitton, however, is different because it sells high life products that entail shining craftsmanship. A informal and loyal customer, therefore, is able to organization a premium price in buying a given item. Besides, the brand builds on exclusivity and classiness that it would always strain to drive by its goods from mass consumption (Haig, 2006). Loyal customers are willing to behave higher prices because such prices exclude different ordinary customers from accessing the Louis Vuitton goods. Besides, the highlife market that Louis Vuitton exploits has tight customers whose demand curves are inelastic to price increases. In pixilated relation to this, the functioning of developed economies such as the US and Europe toi let withstand such price increases. When individuals face improved economic lives, there arises a new beat customers of Louis Vuitton