Louis Vuitton Moet Hennessy Case
Table of contents
Executive Summary 3
Introduction to LVMH 4
Challenges 5
SWOT Analysis 7
Company Analysis 8
Porter 5 Forces Model 13
Industry Analysis 14
Alternatives 17
Recommendations 23
Endnotes 27
Executive Summary Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of products in Asia compared to France.
LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Asia. To face their first challenge of political and cultural uncertainties, the company can hire local designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. To entice the growing “new money” of the Asian market, the company can use celebrity brand endorsements, cheaper product lines and consistent global pricing. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience and shutting down large counterfeit operations. LVMH can overcome the political and cultural uncertainties they face by hiring local artists such as Murakami Takashi to design goods that are targeted to the different Asian markets. To entice the growing “new money” of the Asian market to pay full price; LVMH can focus on celebrity brand endorsements such as using Yao Ming to market their products in Asia. To combat the counterfeit operations, LVMH can spend wisely to shut down large operations in the Asian Market.
Introduction to LVMH and the Market Louis Vuitton Moёt Hennessey- “A unique portfolio of prestigious brands.”[i] The LVMH Group
Executive Summary 3
Introduction to LVMH 4
Challenges 5
SWOT Analysis 7
Company Analysis 8
Porter 5 Forces Model 13
Industry Analysis 14
Alternatives 17
Recommendations 23
Endnotes 27
Executive Summary Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of products in Asia compared to France.
LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Asia. To face their first challenge of political and cultural uncertainties, the company can hire local designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. To entice the growing “new money” of the Asian market, the company can use celebrity brand endorsements, cheaper product lines and consistent global pricing. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience and shutting down large counterfeit operations. LVMH can overcome the political and cultural uncertainties they face by hiring local artists such as Murakami Takashi to design goods that are targeted to the different Asian markets. To entice the growing “new money” of the Asian market to pay full price; LVMH can focus on celebrity brand endorsements such as using Yao Ming to market their products in Asia. To combat the counterfeit operations, LVMH can spend wisely to shut down large operations in the Asian Market.
Introduction to LVMH and the Market Louis Vuitton Moёt Hennessey- “A unique portfolio of prestigious brands.”[i] The LVMH Group