Luxury Brands Buy Supply Chains to Ensure Meeting Demand
Many luxury brand markets, for example the wine-making industry, are facing an enviable problem: a surfeit of demand for its limited supply. Wineries aren't facing problems like marketing or finding customers, but instead are facing problems like finding enough high-quality raw materials for production. Companies in luxury brand markets are working to secure the sources of their competitive advantage and buy supply chains using vertical integration as a strategy to ensure that they can meet the surging demand of their consumers.
- Luxury brands markets are facing a surplus in demand for the limited-supply of resources that they need for production
- Wealthier consumers are feeling confident and richer because of changes like looser business regulations and lower taxes
- Vertical Integration is a long-term strategy
- In today's economy, what do you consider to be a more challenging problem for companies, a lack of supply or a lack of demand?
- What do you consider to be the most effective strategy to meet demand for luxury companies?
- What additional problems would a company who doesn't target the wealthy population the way luxury brands do, have facing similar problems of surplus of demand and shortage of supply?