Lvmh Strategic Management
Strategic Management
LVMH
Executive summary
‘’ Represent the most refined qualities of Western Art de Vivre around the world.’’ This is one of the beautiful statements that have helped Louis Vuitton Moet Henessy (LVMH Group) to become the world's largest luxury goods corporation. The Groups portfolio consists of 60 different prestigious brands with more than 200 stores worldwide. In this report, LVMH’s distinctive competencies and the leading strategies will be analyzed in relation to its current internal and external factors.
The research draws attention to the fact that the corporation’s success is driven by its efficient strategic management of its internal and external environments. LVMH’s strength lies in its brand innovation and diversification strategy, which reduces the exposure to be influenced by particular external factors. Their essential positioning through mergers and acquisitions and the efficient human resource management also contribute to the corporation’s success in the market.
However, further investigations reveal that LVMH operates in the global market and this indicates that external environmental factors should also be taken into account. Some examples are, the changes in the global economic environments, changes of the major consumer market, competition from other luxury brands or imitators, and the risk of brand damage based on consumers’ perception.
Since all these risk factors are both directly and indirectly related to the success of LVMH, this report will show strengths, opportunities and recommend some solutions to overcome the current risks.
Recommendations discussed include:
! to continue to distinguish themselves from other luxury brands, and by continuing to acknowledge that their products are desires and not necessities;
! to have better relations with their customers, to increase customer loyalty, but also to get into the minds of the consumer to give the consumer what they desire, all the while staying ahead of the
LVMH
Executive summary
‘’ Represent the most refined qualities of Western Art de Vivre around the world.’’ This is one of the beautiful statements that have helped Louis Vuitton Moet Henessy (LVMH Group) to become the world's largest luxury goods corporation. The Groups portfolio consists of 60 different prestigious brands with more than 200 stores worldwide. In this report, LVMH’s distinctive competencies and the leading strategies will be analyzed in relation to its current internal and external factors.
The research draws attention to the fact that the corporation’s success is driven by its efficient strategic management of its internal and external environments. LVMH’s strength lies in its brand innovation and diversification strategy, which reduces the exposure to be influenced by particular external factors. Their essential positioning through mergers and acquisitions and the efficient human resource management also contribute to the corporation’s success in the market.
However, further investigations reveal that LVMH operates in the global market and this indicates that external environmental factors should also be taken into account. Some examples are, the changes in the global economic environments, changes of the major consumer market, competition from other luxury brands or imitators, and the risk of brand damage based on consumers’ perception.
Since all these risk factors are both directly and indirectly related to the success of LVMH, this report will show strengths, opportunities and recommend some solutions to overcome the current risks.
Recommendations discussed include:
! to continue to distinguish themselves from other luxury brands, and by continuing to acknowledge that their products are desires and not necessities;
! to have better relations with their customers, to increase customer loyalty, but also to get into the minds of the consumer to give the consumer what they desire, all the while staying ahead of the