With the current challenges, explain how Armani could implement the joint venture strategy to sustain its growth and how to measure its success. [50 marks]

The house of Armani is an Italy-based international fashion house whose products spell ultra-luxury. It products include men's and women's clothes (some worn by Hollywood celebrities), eyewear, cosmetics, perfumes, and accessories. Armani clothes and other allied products are sold through Armani Exclusive Stores spread over most cities associated with glitz and glamour and very high end departmental stores. Armani men's clothing has so far been sought after, however in the U.S., which is one of Armani's main markets, the loyal male customer base is shrinking and the women who supported Armani are getting older. The U.S. and Japan which were Armani's main markets are now shrinking. The economic downturn and the rising rate of unemployment in its main markets forced Armani to look for new markets The Chinese luxury market growing at 30 per cent per annum may be the new Armani market and attention area. In 2010 Giorgio Armani extended his luxury line to include the unrelated business of hotels. In 2010, Armani opened his first hotel at Burj Khalifa having166 guest rooms and suites and 144 residences. The idea was to extend the association of luxury to houses to somehow make it appear that your address can also spell luxury. Burj Khalifa's exclusivity matched Armani's. Armani plans to associate with the aesthetics and interior design of ultra premium properties across the world. It already has a tie up with Lodha Builders for their upcoming property in South Mumbai. Armani, in association with Samsung, also launched the Armani- Samsung phone which didn't take off as expected. The phone was available at outlets different from other Armani products. Perhaps the concept of luxury to a mobile phone was better captured by Apple. Perhaps Armani sought to leverage in a segment that wasn't ready for it yet. The luxury appeal did not work. Armani is a closely family- held company, its patriarch is old and the world around it is changing