QUESTION 1 [50 MARKS] Read the case study below and answer the following questions. LOUIS VUITTON Louis Vuitton company, commonly known as Louis Vuitton or by its initials LV, is a French fashion house and luxury goods company founded in 1854 by Louis Vuitton. Its products ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewelry, accessories, sunglasses and books. Louis Vuitton is one of the world's leading international fashion houses; it sells its products through standalone boutiques, lease departments in high-end department stores, and through the e-commerce section of its website. For six consecutive years (2006-2012), Louis Vuitton was named the world's most valuable luxury brand. In 2012, the valuation of Louis Vuitton was to the tune of US $25.9 billion. The 2013 valuation of the brand was US $28.4 billion with revenue of US $9.4 billion. The company operates in 50 countries with more than 460 stores worldwide. Creator of high-quality travel trunks and leather accessories, the company was above all known for its designer luggage patter. Today Louis Vuitton is a world leader in luxury customer goods. Like several others luxury and prestige brands launched in the 19th and early 20th centuries, Louis Vuitton started out with providing luxury products exclusively for the very wealthy people of society. Even though times have changed and the market for this kind of products has increased enormously Louis Vuitton still targets its products at consumers on the top-end of the wealth spectrum. These are price insensitive consumers allowing the company to charge thousands of dollars for one item. Creativity exclusivity, craftsmanship, precision, high quality, innovation and premium pricing are product attributes that not only give the consumer the satisfaction and a sense of high status that reminds them psychological benefits like prestige exclusive group of a selected few, who can afford others that they belong to an been focusing on satisfying consumers' desire ford pricy items. The brand has also in expanding its position in the fast-growing timepiecestomization and has succeed launch its exclusive LV fragrance from Master Perfumer market and jewelry. It plans to next year, as well as new stores, with openings limited to keyues Cavallier-Belletrud recorded oulstanding results because of its ability to move into a more high-end segment of the luxury market with the right strategies. Louis Vuitton environmental commitment is guided by two principles: sustainability and respect for nature. There is no Louis Vuitton shop around the world that does not care about sustainability. According to the CEO, the surest way to reduce the environmental footprint is to make our product lifetimes as long as possible and for a product to last, it has to be exceptional. This is why the luxury goods shops have so much to contribute to the economy, as they have succeeded in the feat of continually renewing their creativity, without succumbing to passing fads. If the products are standing the test of time, it is precisely because they are aligned with nature. For Louis Vuitton, investing as much in protecting natural resources as in perpetuating artisanal techniques is a key factor. This approach has been made possible by the mastery of the entire value chain. from sourcing raw materials to distribution of final products. When the sales grow by 10%, the carbon dioxide emissions fall by about the same. In order to achieve these results, massive investments have been made in High-Tech equipment along with intensive and continuous training of the staff members. Louis Vuitton showed remarkable resilience against the unprecedented health crisis the world experienced in 2020. Their Financial Statements showed good results and are expecting a higher profit this year. The priority has been to protect the health and safety of its employees and its clients and has thus provided direct support in the fight against the pandemic. The LV shops have shown great agility and creative energy in continuing to bring to life the customers' dreams through a unique digital experience. The focus on dynamic innovation was accompanied by strong commitments to the environment, sustainability and inclusion. Start of 2021, the Louis Vuitton group purchased the iconic jewelry brand Tiffany and its teams. In a context that remains uncertain, even with the hope of vaccination giving the world a glimpse of an end to the pandemic. Louis Vuitton group is confident that they are in an excellent position to build upon the recovery for which the world wishes in 2021 and to further strengthen their lead in the global luxury market. a) By using the PESTEL model, carry out a situation audit of Louis Vuitton company. [30 Marks] Louis Vuitton is considering the idea to open an outlet in Mauritius at the end of 2021. By using the SWOT analysis, critically assess the current situation in the country and advise whether it will be a good idea or not? [20 marks] Page 3 of 6