Why women are enthusiastic about Birkin bag by Hermes Research Paper - 1

Why women are enthusiastic about Birkin bag by Hermes - Research Paper Example It is included in Forbes magazine’s Most Extravagant Handbags list. Bag prices range from US$6,000 to US$120,000 depending on the materials used and the craftsmanship that goes with it (Prabhakar, 2007). So, why do women go gaga over a Birkin bag? What strategy does Hermes adopt making it very successful all these years despite tough competition and the worldwide financial crisis? Where lies the â€Å"mystery† of the Hermes Birkin? According to Hermes CEO, Patrick Thomas, â€Å"Hermes has no desire to become a â€Å"masstige† (a mass producer of prestige goods) (Wright, 2009). Our strategy will be a strategy of value, not a strategy of volume; we are not in the mass luxury† (Agathe, Imadec-Bentata & Zimmerman, 2009, p. 8). They say no to short-term profit; thus, even in times of recession, few discounts are offered (Xie, n.d.) They cannot compromise the quality and the finishing of the product just to increase their sales (Wright, 2009). Hermes strategy is centered on the respect of the legacy of the luxury brand’s history, its heritage. (Xie, n.d.) Their mission is the pursuit of excellence. They adopt a model of scarcity to preserve its prestige and integrity. They do not change their strategy according to the state of the economy (Wright, 2009). They stick to the rule of luxury, that is, even in the worst financial crisis; the world will still have rich people who would like to hold on to exclusive items that can hold value such as a Birkin bag (Xie, n.d.). A purchase of a Birkin bag is viewed not an expense but an investment that could last for 40 years and whose price could go up to more than double as the years go by (Wright, 2009). One of the marketing techniques employed by Hermes is to keep a waiting list with high-profile customers such as Hollywood stars. They also put a â€Å"Reserved† sign on their display bag and they limit the number of Birkin sold to each customer for every purchase

Cold War Years Essay Example | Topics and Well Written Essays - 750 words

Cold War Years - Essay Example The strength of the country is based on its alliance with the United States, which has to be sustained in order to continue strengthening its position in the region (Forsberg 3). As a capitalist country that pursues a free market, it is essential to note that its alliance with the United States has helped it stem any potential aggression towards it from the Soviet Union. Japan has the advantage of having a ready market for its products in the United States and this has enabled it to ensure its continued economic growth while at the same time helping it stabilize it after the Second World War. As a result of its alliance with the United States, Japan has once again come to attain a preeminent role in the world and this is no mean feat considering the dire conditions in the country after the war. Japan has numerous threats both domestic and external that have a potential of undermining its position. Among these is the increasing aggressiveness of the Soviet Union in the Asian region. The Soviet Union shares a common border with Japan and this has a potential of conflict taking place as a result of a possible violation of its borders. Furthermore, Japan might end up being a target of the communist regimes that are springing up across the region as seen in Vietnam and North Korea, at the instigation of the Soviet Union. The history of Japan and neighboring states such as Korea and China prior to the Second World War has left these countries with a sense of injustice and hatred that might result in their choosing to attack Japan as a means of exacting revenge. It has therefore become essential for Japan to take swift action in order to safeguard its interests against those who would seek to undermine it. Currently, Japan does not have any conflicts with any other country in the region and the government should strive to ensure that the situation remains the same. Among the most