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International Business Analysis. Company in Latvia
|Table of Contents||ii|
|Table of Figures||iv|
|2.1.||Historical Development and Operations||3|
|2.2.||Structure and International Development (4 P's)||5|
|2.2.3.||Promotion and Communication||7|
|2.2.4.||Place and Distribution||8|
|3.4.||Social and Cultural Analysis||16|
|3.4.1.||Social Trends in Latvia||16|
|3.4.2.||Consumer Behavior Trends in Latvia||19|
In the chapter of Management Issues operational, cultural, operational adjustments and the importance of finding the right distributor in Latvia is discussed. The distributor has to explain the difference between authentic the Forge de Laguiole knifes and Laguiole knifes that are produced in India or other French factories. As producing costs are higher in France and knifes are hand made from high quality materials the seller has to explain this to the potential customers and also has to be responsible for promoting this product in Latvia. Because the luxury market is different than any other market, in this market products are not made to meet customers’ needs, but to create customers’ needs or to allow the customer to achieve a personal goal by accessing that product.
The Laguiole knife has became more than a simple pocket-knife; it became a symbol belonging to upper-class people and also an ethnic and success symbol for a region where the economy was decreasing. Also in Latvia there are a significant number of people who affords expensive luxury products. In this region people like to buy things in this way showing that they belong to a certain group or social class. So the Forge de Laguiole should focus on this market segment.
The Forge de Laguiole was founded in 1987 at the conclusion of a passionate campaign to reintroduce the crafting of authentic Laguiole knifes to the town of Laguiole. Since the Forge’s opening in 1987 every step of manufacturer has returned to the town where the knifes originated so this patented brand guarantees the origin, authenticity and high quality. Logo is exclusive and assures that each knife is manufactured by “Forge de Laguiole”.
The main issue for the company is that the Laguiole Knife is not a protected brand so everybody, everywhere in the world could produce and sell a Laguiole Knife without any judicial proceeding risk. …
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