Key Success Factors for luxury good industry Assignment

Key Success Factors for luxury good industry - Assignment Example 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 satisfacto ry. 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