« COOPERATIVE STRATEGY »

-A case study of LV and BMW i8-

AYA GAMAL
ID: 20224029006
 Definitions
• A C O O P E R AT I V E S T R AT E G Y I S A N AT T E M P T B Y A F I R M T O R E A L I Z E I T S O B J E C T I V E S
T H R O U G H C O O P E R AT I O N W I T H O T H E R F I R M S , I N S T R AT E G I C A L L I A N C E S A N D
PA RT N E R S H I P S ( T Y P I C A L LY J O I N T V E N T U R E S ) , R AT H E R T H A N T H R O U G H C O M P E T I T I O N
W I T H T H E M . I N T H E G L O B A L E C O N O M Y, M A N Y O F T H E S E S T R AT E G I C A L L I A N C E S A R E
I N T E R N AT I O N A L I N S C O P E .

• A S T R AT E G I C A L L I A N C E I S A C O O P E R AT I V E S T R AT E G Y I N W H I C H . F I R M S C O M B I N E
S O M E O F T H E I R R E S O U R C E S A N D C A PA B I L I T I E S . T O C R E AT E A C O M P E T I T I V E
A D VA N TA G E .
 Types and benefits
oThere are three types of strategic alliances. oWhat are the benefits of cooperative
strategies?
-Joint venture.
Cooperative strategy can help to improve
-Equity strategic alliance. competitive strategy by enhancing the qualities
-Nonequity strategic alliances. that afford competitive advantage.
 Business Levels and Importance
oWhat are the four business level cooperative
strategies?
The four general business level cooperative
strategies are: Complementary strategic alliances
(vertical and horizontal) Competition response
strategy. Uncertainty reducing strategy.
oWhat is the importance of a cooperative strategy?
A cooperative strategy can offer significant
advantages for companies that are lacking in
particular competencies, knowledge or resources,
enabling them to secure these through links to other
companies possessing complementary skills or assets.
Louis
Vuitton

X
 Founders
LV BMW

KARL RAPP, FRANZ JOSEF POPP, CAMILLO

LOUIS VUITTON MALLETIER
CASTIGLIONI, GUSTAV OTTO
1854, PARIS, FRANCE
1916, MUNICH, GERMANY
 and BMW

BERNARD OLIVIER ZIPSE:

ARNAULT
A GERMAN
CHAIRMAN AND MANAGER WHO HAS
CEO OF LVMH MOËT BEEN SERVING AS
HENNESSY – LOUIS CHAIRMAN OF THE
VUITTON, THE BOARD OF
WORLD'S LEADING MANAGEMENT (CEO)
LUXURY PRODUCTS OF BMW SINCE 16
GROUP. AUGUST 2019.
 The Cooperation’s Product
LOUIS VUITTON, A PIONEER IN
THE ART OF TRAVEL, HAS TEAMED
UP WITH BMW I TO CREATE A
CARBON FIBER LUGGAGE SET
EXCLUSIVELY DESIGNED FOR THE
BMW I8.
The set has been designed specifically to fit in and around the i8’s many luggage compartments
and storage spaces.
Patrick. L. Vuitton

“This collaboration with BMW epitomizes our shared values of

creativity, technological innovation and style,” says Patrick-
Louis Vuitton, Head of Special Orders at Louis Vuitton. “Our
craftsmen at Louis Vuitton have enjoyed the challenge of this
very special project, using their ingenuity and attention to
detail to create a truly made to measure set of luxury
luggage,” he adds.
 Product’s Revenue

Revenue : 64.2 billion EUR (2021) Revenue : 111.2 billion EUR (2021)

LV x BMW i8

Date: 1 April 2014

Price: - car: over $150,000+
- luggage set $20,000
Revenue: $39 billion
 cooperation
• B M W D E C ID E D TO R E A C H O U T T H E L O U IS V U I T TO N TO P R O M O T E
T H E I8 C R E AT E D I N 2 0 1 4 .
• T H E Y B O T H S E E K T H E S O P H I S T I C AT E D , P R O F E S S I O N A L A N D
S U C C E S S F U L D E MO G R A P H I C O F B U Y E R S , U S IN G Q U A L IT Y A S T H E
R E F L E C T IO N O F T H E IR H E F T Y P R I C E P O IN T S .
• T H E A G R E E D D E L I V E R A B L E S O F T H E PA RT N E R S H IP IN C L U D E D A
B M W S P O RT S C A R M O D E L A N D A L O U I S V U I T TO N E X C L U S IV E LY-
D E S IG N E D F O U R - P IE C E S E T O F S U I T C A S E S A N D B A G S T H AT F I T
P E R F E C T LY I N TO T H E C A R ’S E L E G A N T B O O T (A N IC E A D D IT IO N W E
WO U L D N ’T S AY N O TO ! ).
Why did this
work?

• Both companies share the same values on creativity.

• It showed both companies ability to adapt to each other’s design.
• Million page view to their sites.
• The collaboration was shared on both companies digital channels, as
well as their retail stores.
 SWOT Analaysis
LV Strenghs
-Brand recognition and Brand value LV Weaknesses
-Iconic Logo -High-end product prices
-Endorsement strategy -Product Innovation
-Collaborations with top designers -Weak online presence and online
-Customer Loyalty sales
BMW Strenghs -Limited distribution channel
-One of the most valuable automotive BMW Weaknesses
brands in the world -Poor automotive brand portfolio
-Geographically diversified revenue streams with little product differentiation
-Perfect engineering and excellent driving -Increasing debt levels
experience
-Competence in hybrid and electric cars
-Clear strategy to meet the future challenges
and trends
 LV Opportunities
-Better prospects in developing
countries
-Environmental Policies
-Glamourizing for Generation Z
-Addition/Extension of the product
range & services
BMW Opportunities
-Fuel prices are expected to rise in the
near future
-Demand for autonomous vehicles
-Weakening euro exchange rate
-Timing and frequency of new model
releases
LV Threats
-Forged products of Louis Vuitton
-Global economic crisis
-Changes post-pandemic
BMW Threats
-Increasing competition in the
worldwide automotive market
-Increasing government regulations
may raise the costs
Conclusion

When cutting-edge technology meets timeless

craftsmanship, great projects are bound to be
born. German car-maker BMW partnered with
Louis Vuitton to create the ideal travel
companions for the plug-in hybrid BMW i8.
And it was a quite succeful cooperative
strategy where both brands achieved their
marketing objectives.
 REFERENCES:

https://www.coursehero.com/file/p2j99h3/Chapter-9-Cooperative-strategy-1-Define-cooperative-strategy-What-types-of
https://eol.bnuz.edu.cn/meol/common/ckeditor/openfile.jsp?id=DBCPDFDBDDDIDDCPEDGIDADJGJGNCOGEGPGD
https://www.birmingham.ac.uk/postgraduate/courses/taught/business/msc-ib-modules/cooperative-strategy.aspx
https://www.lvmh.com/group/about-lvmh/governance/executive-committee/bernard-arnault
https://medium.com/@menanally/bmw-used-louis-vuitton-to-sell-more-cars-heres-how-3500c702a35b
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https://strategicmanagementinsight.com/swot-analyses/volkswagen-swot-analysis
https://www.lvmh.com/news-documents/news/innovative-collaboration-from-louis-vuitton-and-bmw
https://www.lvmh.com/news-documents/news/innovative-collaboration-from-louis-vuitton-and-bmw