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Key Success Factors for luxury good industry - Assignment Example

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Key success factors are very vital for the luxury goods industry as they ensure that the goods and services provided by the industry reach the intended market. There are various factors that enhance success in the luxury good industry and they include a well-known and…
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Key Success Factors for luxury good industry
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Key Success Factors for luxury good industry Affiliation Key Success Factors for luxury good industryKey success factors are very vital for the luxury goods industry as they ensure that the goods and services provided by the industry reach the intended market. There are various factors that enhance success in the luxury good industry and they include a well-known and well-respected brand name as a form of marketing strategy. Many people who are interested in the luxury industry look for goods that have well-established and respected brand names. A product’s brand name is very important to people for because of the respect and confidence they experience when using the brand. Many people, therefore, buy brand names for class and the luxurious experience associated with the brand. In the Coach case, the strategy to diffuse in all markets was to ensure that their products were of a world class level; hence, attracting all sorts of individuals. Even the middle class people want to feel a sense of luxury, hence the need to have a product whose brand is recognized as it gives them a sense of belonging (Okonkwo & Palgrave Connect, 2007). A well-recognized and respected brand positively affects the industry by increasing sales; hence, economic growth, not only in the countries that have been outsourced for manufacturing, but also in other parts of the world as most people prefer a recognized brand. The strategic implication of a well-recognized and well-respectable brand is the growth of the industry.
Secondly, there is the aspect of expertise in a particular field in the Coach case, it is the expertise in the luxury industry. Appointing a person in the luxury industry who has the expertise on the market and design is very important as they help in coming up with new and innovative products that are fast moving. This is a key success factor, because today’s consumers are appealed by fast moving products in the market, regardless of whether the quality of the material used is expensive or not. In the Coach’s case, after they realized their products were not moving they employed Reed Krakoff as the new creative director. His idea was that the products in the luxury industry should be based on market research rather than the designer’s instincts. This factor affects the industry by creating a competitive advantage and when it comes to strategic implication it ensures that the luxury industry stays on top as it gives it customer’s goods that are satisfactory.
The third factor is the aspect of national or global distribution capabilities. It is an imperative or key success factor, because without the right mode of distribution of the luxury products then it would be had for the luxury products to get to the consumers (Okonkwo & Palgrave Connect, 2007). In the case of Coach, in order to get their products in the market on time, they had to outsource their distribution capabilities to China, India and other parts of the world to ensure efficiency not only in manufacturing products but also in distribution. The move is important as it ensures that all the customers get their products on time and as soon as new products are out. This factor affects the luxury industry by providing a competitive advantage over other companies in case the aspect is utilized effectively. The strategic implication in this factor is that, it increases reliability in the organization as people know that they will get their products as soon as they are out without any delays.
Reference
Okonkwo, U., & Palgrave Connect (Online service). (2007). Luxury fashion branding: Trends, tactics, techniques. Basingstoke: Palgrave Macmillan. Read More
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