Value Proposition What is missing? Is your product and/or service going to fill the GAP? The Luxury Brand Louis Vuitton The basic idea you have considered is pretty good. However that are other variables in the market that you need to consider before making such assumption or conclusion. The market is dynamic and it is a wise decision to consider all the market variables which will affect your business at large. Let us discus some of the few factors which are key to the dominance of your business: Customer satisfaction: Customer satisfaction can be defined as the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services exceeds specified level of satisfaction goals. In any market, customer satisfaction plays an important role in determining how the firm will retain its customers. The first experience with your customers has to be outstanding in order to remain as a market leader in the industry. Change in demographics: As time goes by, the customer's demand may shift depending on their level and change of status or change of technology. Therefore, your firm has to monitor the behavioral change of the customer's behavior in order to meet the customer's demands at any particular point in time. Change of customer interests therefore need to be monitored closely. Channels of distribution: The channels of distribution also has an impact on the performance of your business. The middlemen may increase the overall cost of your product which means that your product may be so high that the customers may not afford. Possible substitutes: The firm may not seem to be having possible ideal competitors but it can face the challenge from the substitutes in the market. Every market have substitutes such that if certain product may cost higher than what the customers may be willing to pay, then such customers may choose to shift and use the alternative products which are affordable to them. The SWOT analysis of Fendi "Monster" Collection Strengths: the firm has a huge financial capital which allows it to conduct its operations with smooth and employ the best skilled workforce which will enable the firm to improve its products over time. Firms that have stability in the market are rarely affected by the disturbances in the market variables. Weaknesses: the firm has not managed to differentiate its products to meet the different market segments in the industry which leaves the firm at a position which faces stiff competition from competitors. Opportunities: just like any other firm, the firm can form strategic alliances with the other bigger firms in the industry. This ensures that the firm's products can be sold by the allied companies and apart from increasing sales, it also creates customer awareness. This will increase the revenue generation of the firm hence increase the overall profitability. Threats: Just like any other firm, Fendi "Monster" Collection faces threats from the competitors. When particular market seems to be doing so good, then it attracts many new entry firms in the market. Therefore, the aggregate sales will drop as some other new competitors gain ground in to the market. PART TWO Value Proposition What is missing? Customization: From the above information provided, the firm has to consider including customization as a strategy and a process in achieving success in the industry. Customization is the process of manufacturing products which meets the specific customer needs. This means that the firm has to create a platform where customers will make orders for specific qualities and quantities. Market research: This is also one of the key factors which the firm has to improve and invest on. The firm should keep on updating its knowledge on the current market variables which will ensure that the firm will have full knowledge of changes in the trends of customer behaviors. Market research will ensure that the firm will have utilize the current information as a competitive advantage because information is power. Product re-engineering: The firm has to continue improving its products on a daily basis in order to meet the demands of its customers. Value creation will only be realized if the firm can continually improve its products to meet the demands of all the customers the firm is serving. Products may be obsolete or outdated if they will not be regenerated after some specified period. Monitor competitor's behavior: Competitors respond to the market changes differently. Therefore, the firm has to understand the changes in behavior of the competitor. Just like opponent teams need to understand the tactics used by the rival team, it is the same to the competitors in the market. The best market player must have full knowledge of the tactics used by their competitors. Information technology: This is an area where all international firm has to manage it in order to remain in business. The firm must establish an information technology that synchronizes all the information about the firm that the customers need to know. This will reduce misleading information that is gathered from different sites. Some of the customers also prefer shopping online and therefore, the firm has to create website which enables the customers to shop right from their coaches at their homes. Regulation: Government policies plays an important role in the success of a firm. All firm need to comply with government regulations like paying taxes or protecting the environment against pollution. This will boost the reputation of the company and reduce any conflict with the authorities which destroy the running of the business. Channels of Distribution: The channels of distribution contributes a lot to the success of the business. Different products are delivered using different channels of distribution in the market. Therefore, the firm has to select the most appropriate channel of distribution for its products. Conclusion: All the above variables will drive the success of the business and creates values to the business. These factors among others will fill most of the important gaps that exist. References Blecker, T.; Abdelkafi, N.; Kreutler, G.; Kaluza, B.: Auction-based Variety Formation and Steering for Mass Customization, in: Electronic Markets, 14, 3, 2004, pp. 232-242. Homburg, Christian, Nicole Koschate, and Wayne D. Hoyer. "The role of cognition and affect in the formation of customer satisfaction: a dynamic perspective." Journal of Marketing 70.3 (2006): 21-31 McCarthy, I.P. (2004). "Special issue editorial: the what, why and how of mass customization". Production Planning & Control 25 (4) Mittal, Vikas, and Carly Frennea. "Customer satisfaction: a strategic review and guidelines for managers." MSI Fast Forward Series, Marketing Science Institute, Cambridge, MA (2010) Good, but I still want to know more thing. For example, who is our customer? What you need to do as company, is to differentiate your products. After doing this, select a target market based on the income distribution of the people. Some of the customers in some regions have a higher purchasing power and therefore, since the firm don't have a competitor yet, then the firm must decide on a particular market. What is our price point for handbags? The basis of setting your prices must be based on the market prices of similar bags but not as the same as of your firm. The prices must be set with relation to the prices of the substitutes or similar products. This will ensure that you don't overprice your products or set lower prices which will reduce the earning of the firm. Market research in this case will be of great help either leveraging on information from the distributors or market insiders. We need to look at the annual report, our customer who can afford to buy LV Marketing research will help to identify all the types of customers in the market and the prices they are willing to pay. Therefore, your firm must have facts on who the target customers are. Good, but I still want to know more thing. For example, who is our customer? What you need to do as company, is to differentiate your products. After doing this, select a target market based on the income distribution of the people. Some of the customers in some regions have a higher purchasing power and therefore, since the firm don't have a competitor yet, then the firm must decide on a particular market. What is our price point for handbags? The basis of setting your prices must be based on the market prices of similar bags but not as the same as of your firm. The prices must be set with relation to the prices of the substitutes or similar products. This will ensure that you don't overprice your products or set lower prices which will reduce the earning of the firm. Market research in this case will be of great help either leveraging on information from the distributors or market insiders. We need to look at the annual report, our customer who can afford to buy LV Marketing research will help to identify all the types of customers in the market and the prices they are willing to pay. Therefore, your firm must have facts on who the target customers are