dc.description.abstract | In recent years, the economy of environment is still week. A new economic model for plebeian economy is getting hot. Emphasis on affordable luxury which named Masstiges, the sales growth is getting higher and higher. They are not only selling high-priced luxury goods, but also offering a variety of affordable luxury and casual style of product selections. Their target groups are focusing on the middle class consumers, this kind of "pyramid" affordable luxury consumer trending makes global luxury industry market getting more competitive.
The target company of thie case study is an American company’s Taiwan branch office. Since 2007, the management team has been changed many times. The overall operating performance of case company had the last ranking in Asia in 2012 due to the the fierce market competition, and the weak brand awareness in Taiwan market.
Since the new management team of Taiwan branch office took over in 2013, they have tried to improve the currently situation, and making better business strategy to renew current business model, to break the deadlock for market competition and getting higher business performance.
The objectives of this stuy are three-fold: (1) what are the opportunities and threats in external environment for case company? (2) What is the current business model of case company? (3) To achive this goal, how to design a self-reenforcing business model for case company?
This study uses country level “8+ Business Model” to analyses the external environment of the firm to find out the opportunities and threats for luxury industry in Taiwan, then it uses firm level “8+ Business Model” to analyses the currently business models of the case company and her major rival to find out the strengths and weaknesses of the case company. Finally, this study uses the “8+ SWOT” analysis to derive systematically the case company’s strategies and reinvent a new, self-reenforcing business model for the case company.
There are three conclusions of this study. First, there are five opportunities of luxury industry in Taiwan: 1. Taiwan’s market is small, but consumers accept luxury goods and love to use them. 2. The policy of China visitors to Taiwan is positive impact to help luxury market growth. 3. China Government still limited citizens to buy luxury goods in China. 4. Taiwan has very quality manpower for luxury market. 5. Affordable luxury is a very hot trend, massitage vendor should take the opportunity. There are also three threats for of luxury industry in Taiwan: 1. Taiwan market is small and too many competitors. 2. In Taiwan salary level appears negivate growth. 3. Gonvenment policy makes luxury market becomes more competition.
Second, current business model is getting normal and strong for case company. After new MD - Mr. Hwang joined in April, 2013. The managers are improving the business model on 4 key elements: Position and Releation, Innovation and Leadship, Resourcing and Cooperation, Pruducts and Services. So they got the big business growth in 2013.
Third, to achive the higher targets in futhering five years, the managers in case company should adjust the current business model in 4 key elements: Market Positioning and Value Releationship, Value Innovation and Faithful Counsel, Resource Input and Team Unity, Pruduct Group and Customer Services, and also keep the CAGR over 13% and ROIC over 30%.
Finally, in the study provides the following suggestions for case company’s reference:
1. Take her advantage in this Massitage, affordable luxury goods market.
2. Clarify brand value and deviler the brand image to the target market segment.
3. Take care customers’ feeling with good product, brand image, customer services.
4. Be partner with all of the channels, departsments to increase brand awareness.
5. Take the chance of China visitors coming Taiwan and adjust store opening strategy for them.
6. Get regional head quarter’s fully support.
7. Follow up the Google wearing device and moving on it.
8. Increase more portfolios produces to fulfill customer’s variant needs. | en_US |