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demands attention and fosters unique brand awareness. Louis Vuitton is a company that continuously rejuvenates itself and has maintained a highly coveted brand for 150 years. Monogrammed Louis Vuitton products are in such demand that it has spawned a multi-million dollar market of counterfeit products, most commonly referred to as “knock-offs.” The demand is so high for these knock-off products that LVMH Moet Hennessy, owner of the brand, has a special team that works with international police organizations. The LV logo has become an icon in the designer luggage, handbags and accessories market. The words Louis Vuitton are the code for describing an internationally recognized and exclusive fashion empire.
LVMH Target Market: - It aims at the people who are aged between 18-35 and love towards fine design, and the taste for tradition and luxury, Louis Vuitton has maintained its lead in fashion through clever advertising in magazines like “Vogue” with print ads that focus on LV logo products as chic. In recent years the company has expanded its product line into ready-to-wear, shoes, watches and etc LVMH's strategy: - Concentrating on its star brands which have the most growth potential.'' The group's most profitable brands include Louis Vuitton and Christian Dior. Moet Hennessy Louis Vuitton (LVMH, the world's largest luxury goods company), owns famous luxury brands like Dom Perignon, Christian Dior, Donna Karan and Louis Vuitton. LVMH defines a brand's identity by mining its history and finding the right designer to express it. LVMH believes in controlling quality and distribution and creating brand excitement among customers with innovation, which in its view is the ultimate driver of growth and profitability. Chairman Bernard Arnault believes that star brands are born when a company manages to make products that 'speak to the ages', yet remain intensely modern. These products fulfil the consumer's fantasy. A star brand is timeless, modern, fast growing and highly profitable. Arnault believes that the impression of timelessness can be created with uncompromising quality. • Lvmh, joint venture between giants
which by definition has to focus more on the tactics of individual detailed activities).• • • LVMH Sells Ebel LVMH to focus on top brands Regional Business Networks and the Multinational Retail Sector Strategic planning OF Lvmh consists of the process of developing strategies to reach a defined objective. known as growth investors. Those who follow this style. Investment Strategy:-Growth investing is a style of investment strategy. even if the share price appears expensive in terms of metrics such as price-to-earning or price-to-book ratios. • "Long range" planning typically projects current activities and programs into a revised view of the external world. thereby describing results that will most likely occur (whether the planner wants them or not!) "Strategic" planning tries to "create" more desirable future results by (a) influencing the outside world or (b) Adapting current programs and actions so as to have more favourable outcomes in the external environment. In . As LVMH labels a piece of planning "strategic” BA expect it to operate on the grand scale and to take in "the big picture" (in contradistinction to "tactical" planning. invest in companies that exhibit signs of above-average growth.
LVMH recently finalized the acquisition of Donna Karan. when just investing in one style of stocks. Ruinart. Finance and Reporting. . Dom Perignon. Pommery. Fendi and Pucci. Ebel. Thomas Pink. The Group is represented in Wines and Spirits by a portfolio of brands that includes Moet & Chandon. the legendary American brand. LVMH's Watch & Jewelry division comprises TAG Heuer. Christian Lacroix. Canard-Duchene. The Wine & Spirits unit of LVMH. Givenchy.typical usage. Maintenance. Production and Quality Management. Moàt Hennessy (MH) objectives—underpinned by harmonization. the term "growth investing" contrasts with the strategy known as value investing. Chaumet. Loewe. BeneFit Cosmetics. the houses had been fiercely competitive. However. Historically. some notable investors such as BA knew that there is no theoretical difference between the concepts of value and growth when considering ("Growth and Value Investing are joined at the hip"). Supply Chain (planning linked to forecast and distribution replenishment for subsidiaries and wholesalers. diversification could be negatively impacted. Hennessy. Now that they were all under the LVMH Group umbrella. Moà«t & Chandon. About LVMH LVMH Moet Hennessy Louis Vuitton is the world's leading luxury products group. Purchasing. Veuve Clicquot Ponsardin. Traceability and Product Lifecycle Management. Krug. Indeed. Hard Candy. Urban Decay. all of them world famous brands: Dom Pérignon. the world's leading luxury brand. Mercier. Veuve Clicquot Ponsardin. as well as Omas. simplification and innovation—were to improve the processes and IT solutions of its houses with immense scope included. Ruinart and Krug. Chandon. Kenzo. a world leader in luxury. Givenchy and Kenzo. Its Fashion & Leather Goods division includes Louis Vuitton. Bliss. and has recently acquired six promising cosmetic companies. Guerlain. the parent company needed to find a way to make them work in a harmonized way with their clients. as well as Celine. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior. Fred. In addition. Chateau d'Yquem. Zenith. includes five Houses of Champagne and Cognac. Make Up For Ever and Fresh. the prestigious Italian writing instruments company. Hennessy and Hine.
the main one is to keep being the leader in the luxury market through a sustainable growth. This may have an Important impact in the overall performance and operating decision taken in the company. presents an indepth business.LVMH is active in selective retailing through DFS. It is important to note that the major owner of the company’s capital is present CEO Bernard Arnault with 47. also recently joined the Group. Being positioned as the market leader they have better financial results than the rest of the competitors.Financial and Strategic Analysis Challenge statement: “Despite worldwide softness in the sale of luxury goods. the leading business information provider. two specialized publications.PA) are listed on the Paris Stock Exchange and NASDAQ in the United States (LVMHY) LVMH Moet Hennessy Louis Vuitton SA . LVMH shares (LVMH. Japan and USA. the authoritative online source for luxury goods on the Internet. also belongs to the LVMH Group. which has recently teamed up with L'Etude Tajan and Geneva art dealer de Pury & Luxembourg Art. Miami Cruiseline. The main problem to achieve it is the high dependency on three main countries. Sephora. LVMH has cemented its position as the world’s largest and most profitable player in the category. Le Bon Marche and La Samaritaine. continuing to transmit elegance and creativity. This poses some major challenges. LVMH founds itself in a stable financial situation. strategic and financial analysis of LVMH Moet Hennessy Louis . Global Markets Direct. This becomes a threat because if there is an economic downturn in one country it affects LVMH directly that is why.52% of the control of the company with 64% of voting rights. To stay there it must keep its customers loyal and its brand strong and find new markets worldwide” (Hazlett C. 2004). Their objective is to be the leader in the luxury market. In 2000 LVMH also launched eLUXURY. one of the world's largest auction houses. France. Phillips. Although the sales results for 2004 were under the industry’s average the overall performance over the last 5 years was 3% higher then the industry. That is why in its mission they state to represent the most refined qualities of Western “ art de vivre” all around the world. Connaissance des Arts and Art & Auction Magazine.
with key data on their businesses and locations. different locations and important subsidiaries. financial and operational performance.business structure and operations. The hallmark of the report is the detailed strategic analysis and Global Scope • Markets Direct’s views on the company. margins and returns. • • It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters. including business structure and operations. • . • The opportunities open to the company are considered and its growth potential assessed. liquidity and leverage. Competitive or technological threats are highlighted. Get detailed information and financial & strategic analysis on companies operating in your industry.Vuitton SA. financial position and efficiency ratios. strategic and operational factors are considered. Identify prospective partners and suppliers . Financial. key competitors. Capitalize on competitors’ weaknesses and target the market • • • opportunities available to them. key employees and executive biographies. The company’s strengths and weaknesses and areas of development or decline are analyzed. executive biographies and key competitors. Scout for potential acquisition targets. The report provides a comprehensive insight into the company. Enhance business/sales activities by understanding customers’ businesses better. • Compare your company’s financial trends with those of your peers / competitors. the company history. with detailed insight into the companies’ strategic. Financial ratios include profitability. • Reasons to buy • • A quick “one-stop-shop” to understand the company. The report contains critical company information . major products and services.
In sector where they don’t have the “know-how” and don’t match the company Image. LVMH was aware that they produced products that nobody needed. such as Donna Karen. and very rapid growing.LVMH’s Strategy The problem into Luxury Diversification Goods By 2002. turkey. or else they will not be in the moment. After the case and readings the problems of LVMH there are several problems such as the declining demand for luxury goods because it is linked to political events. LVMH has acquired over 50 luxury brands. highly profitable. LVMH carries the most prestigious brand names in wine. and perfume. Upon entrance of this luxury product industry.2 billion euros. LVMH was on top of the industry in certain aspects. making consumers feel as though they must buy it. while others were caused by externalities. With such a wide range of product offerings. LVMH did experience some bumpy times. and Sephora. Moet Hennessy Louis Vuitton was the world’s largest luxury products company. jewelry. Some of these times were induced through internal problems. but has room for growth in other areas. and thus will be left behind. This desire in some way fulfills a fantasy. and other still have to improve their IPR policies and finally LVMH diversification strategy (Bernard Arnault) is making acquisitions outside the company’s sector. “a collection of star brands and rising stars. The current CEO (Arnault Bernard) is also the major shareholder which makes him easier to make decisions on new . situation and social trends. champagne. Despite all of the above mentioned. Over the course of time. some countries such as china. They called it. The LVMH business portfolio began to take shape in 1987 with the merger between Louis Vuitton and Moet Hennessy which was a four billion dollar merger. but that were desired by millions across the world. like Sept. Fendi.” LVMH found this industry to be timeless and modern. (After the attacks of 9/11 an impact on luxury goods has dropped and had automatically an impact on LVMH sales) Secondly luxury products are easy to counterfeit. 11. fashion. enjoying annual sales of 12.
acquisitions The Strength: • • • • • • Name recognition which makes them the largest product marketplace Their Leading Quality Distribution Public Relation experience during the time position provider swot analysis Weaknesses • • • • • • Their Conflict Forward Finance Declining problems: of interest and net sales (fashion vs. backward decreased by nearly 6% wine Diversification and spirits) integration in 2003 shares Luxury goods are easy to imitate. (Perfumes. Louis Vuitton bags…) Opportunities • • • • • • Merger Consumer Current Emerging Expansion to other increase in and acquisition trends wealth market markets Improvement of way of selling their large product line (distribution channels) Threats • • • Change Economic Competitor in smaller in consumer taste recession markets .
• Counterfeit .
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