Master 2 CPEI
LVMH: Strategic Integration and Expanding Brand Dominance in Asia
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Table of contents
INTRODUCTION……………………………….…………………………………......…3 I. LVMH and its environment ……...…………………………..……….………………..3
A. The luxury market and it segmentation……………………...………….………………3
1. Analysis of the luxury market: « The luxury-goods industry »…..………………...3 2. Segmentation……………………………………...…...….…………………......….4
B. LVMH presentation…………………………………...…...….……………………….….5
1. General presentation………………………………...…...….…………………...….5
2. The Geographic Position in Sales………………...…...….…………………...…….6 C. LVMH analysis…………………………………………………………………………....6
1. Company SWOT……………………………………………………………………7 2. SWOT per sector……………………………………………………………………9 3. Key Success Factors for LVMH………………………………………………..….13 4. Competitors……………………………………………………………………..…14
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LVMH strategic integration.………………………………………………………….15 A.The logic of métiers…………………………………………………………..………….15
B.Optimization of synergies….……………………………………………………………18
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Marketing program: how to double profits within 5 years……………………20
A. General recommendations on strategic sectors………………………………………20 B. The Asian market…………………………………….. ………………………...……21
1. Challenges and opportunities…………………………….......................................21 2. Recommendations in the process of expansion in Asia...........................................22
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Introduction
LVMH, the world leader on the market of luxury products Group was created in 1987 and results from the merger of Louis Vuitton (an upscale luggage company) and Moët Hennessy ( producer of champagne and cognac). Since its creation LVMH has made changes to its structure and in 1997 LVMH started creating business branches around the different métiers of the Group by combining apparently disparate businesses and synergies between the sectors. By