The company has its largest customer base in Germany with its first in-house production. These companies for their implementation of globally effective strategy relied on its set of principles and guidelines which included a selection of partner having the similar mindset and shared the same view for the product and the market prospect. There are many luxury car brands, such as Toyota Motor Corporation's Lexus line and BMW, promoted their “ certified pre-owned” vehicle programs under which they reconditioned the used cars, and presented the product with a new warranty date, and they offered the product with the same appeal which they opt for their new products which convinced their prospective customers in paying little more in such hardship just for the sake of fulfilling their dreams of having that unique range of products.
. Louis Vuitton, yet another designer brand which is owned by France’ s LVMH Moet Hennessy insisted lately on promoting its “ junior” leather goods and other items at Neiman Marcus department stores (Buss, 2002). the major challenges faced by such branded firms offering luxury goods to their customers look on factors for sustainability such as brand loyalty, evaluation of performance on the basis of objectives of the tasks, and also considers the customers experience regarding their products (Parasuraman & Grewal.
2004). Companies having a brand name its there industry are most prone to face problems associated with aggressive growth. This was brought to the scene by Michael Zaoui, managing director of European mergers and acquisitions branch of Morgan Stanley which is involved in financial services. According to Zaoui adopting such aggressive growth by targeting broader consumer segments and providing the luxury goods at an affordable price has its drawbacks also.
The major problem associated with that is the customer group which is targeted by the firms by offering products at a low price. Those customer groups have maximum impact of economic ups and downs and as a response to such episodes, they refrain from purchasing such products which they consider less important purchase because of its brand name (Jackson & Shaw. 2006).
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