Lvmh Report
Business Report of LVMH
Group members:
Rining Mutang Beili Yin
10130350
10153456 10095036
Sekit Chubuppakarn Xu Yang
10095786 10136050
Mahsa Tolou Sharifi
0
Executive summary
LVMH, the world s largest luxury group, came into being with the mergers of Moët Hennessy and Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather & fashion goods, other three are perfumes & cosmetics, watches & jewelry and selective retailing.
In the external environment of part two, the report analyzed the relevant dimensions of the macro environment by use of the PESTEL framework and the luxury industry by the Five forces framework. The global economy, people s expectations on luxury goods, drive for technological application, rarity of raw materials, and intellectual property laws all have an impact on LVMH in a broad sense. In a narrower sense, market entry into the luxury sector is defined low, threat of substitutes neutral (low to loyal customers but high to those who normally cannot afford), the power of suppliers, the power of buyers and competitive rivalry all high.
Generally the luxury industry can be regarded as in the shake-out stage; however, people in the US, wealthy European countries and different Asian countries are in the different stages of luxury spread process. Following the life cycle of the industry, the cycles of competition model will be illustrated to explain the strategic moves of LVMH and its two main competitors PPR and Richemont.
In the strategic capabilities of part two, the report presented LVMH s physical resources, financial resources, human resources and intellectual capital. The Group s core competencies lie in four key elements and price. product, distribution, communication
In the culture and strategy of part two, LVMH s corporate values and culture, and the cultural web in terms of symbols, organizational and power structure and control system are presented respectively. LVMH
Group members:
Rining Mutang Beili Yin
10130350
10153456 10095036
Sekit Chubuppakarn Xu Yang
10095786 10136050
Mahsa Tolou Sharifi
0
Executive summary
LVMH, the world s largest luxury group, came into being with the mergers of Moët Hennessy and Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather & fashion goods, other three are perfumes & cosmetics, watches & jewelry and selective retailing.
In the external environment of part two, the report analyzed the relevant dimensions of the macro environment by use of the PESTEL framework and the luxury industry by the Five forces framework. The global economy, people s expectations on luxury goods, drive for technological application, rarity of raw materials, and intellectual property laws all have an impact on LVMH in a broad sense. In a narrower sense, market entry into the luxury sector is defined low, threat of substitutes neutral (low to loyal customers but high to those who normally cannot afford), the power of suppliers, the power of buyers and competitive rivalry all high.
Generally the luxury industry can be regarded as in the shake-out stage; however, people in the US, wealthy European countries and different Asian countries are in the different stages of luxury spread process. Following the life cycle of the industry, the cycles of competition model will be illustrated to explain the strategic moves of LVMH and its two main competitors PPR and Richemont.
In the strategic capabilities of part two, the report presented LVMH s physical resources, financial resources, human resources and intellectual capital. The Group s core competencies lie in four key elements and price. product, distribution, communication
In the culture and strategy of part two, LVMH s corporate values and culture, and the cultural web in terms of symbols, organizational and power structure and control system are presented respectively. LVMH
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