...5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20 Appendix 10: Cross Business Strategic Fits20 Appendix 11: Evaluating the Strategy of a Diversified Company21 Appendix 12: LVMH's Timeline of Mergers and Acquisitions24 9.0 REFERENCES25 1.0 Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH face and establish some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model, SWOT analysis and PESTEL. It was found that the key strategic issues that LVMH face centred on diversification and vertical integration. A number of strategies have been proposed to offer some recommendations to LVMH, they namely in restructuring their retail sector, considering the concept of moderate diversification and focusing on the human resources side of acquisitions and mergers. 2.0 Introduction This report is based on the analysis of a case study 27 titled: LVMH's Diversification Strategy into Luxury Goods. The scope of this report is limited to the data contained in the...
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...LVMH 2012 — ANNUAL REPORT BUSINESS REVIEW CONTENT — Group’s profile 03 06 09 10 11 CHAIRMAN’S MESSAGE FINANCIAL HIGHLIGHTS INTERVIEW WITH THE GROUP MANAGING DIRECTOR GOVERNANCE EXECUTIVE AND SUPERVISORY BODIES A coherent universe of men and women passionate about their profession and driven by the desire to innovate and achieve. An unrivalled group of powerfully evocative brands and great names that are synonymous with the history of luxury. A natural alliance between art and craftsmanship, dominated by creativity, virtuosity and quality. A remarkable economic success story with more than 100,000 employees worldwide and global leadership in the manufacture and distribution of luxury goods. A global vision dedicated to serving the needs of every customer. The successful marriage of cultures grounded in tradition and elegance with the most advanced marketing, industrial organization and management techniques. A singular mix of talent, daring and thoroughness in the quest for excellence. A unique enterprise that stands out in its sector. Our philosophy can be summarized in two words: CREATIVE PASSION. 12 22 36 46 58 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING — The values of LVMH Innovation and creativity Because our future success will come from the renewal of our product offering while respecting the roots of our Maisons. Excellence of products and service Because we embody what is most noble and accomplished...
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...copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-04-04 SYNOPSIS Moët Hennessy Louis Vuitton (LVMH) enjoyed double digit growth and healthy profitability in 2010 and 2011. A large part of this growth had been driven by its flagship group Louis Vuitton (LV). In 2011, LVMH announced that long-time LV CEO Yves Carcelle would be replaced at the end of 2012 by Jordi Constans, an executive from the French food product multinational Danone SA. However, after serving less than a month, Constans was replaced in December 2012 by Michael Burke, an LVMH insider who had been with the company for nearly 30 years. While LV had enjoyed rapid growth over the last two years, the question was whether such a growth rate was sustainable. What were the challenges facing LV, and how should these challenges be addressed? HISTORY Louis Vuitton Malletier was born in 1821 in Anchay, France. At age 16 he moved to Paris and took up a job as an apprentice trunk maker, over time...
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...Case 3-4: LVMH: Managing the Multi-Brand Conglomerate 1. LVMH’s diversification represents the group’s strong presence in the luxury goods market as a whole with products from the fashion and leather range, wines and spirits range, watches and jewelry range, perfumes and cosmetics range, and finally the selective retailing range. This strategy aims to claim market share in market segments that are interrelated with the specific customer segment as the common denominator. LVMH is a market leader in some markets and has a decent market share in others and aims to be the leader in the luxury market as a whole where the elite customers can recognize its brands from all of its product ranges and the company plans to build brand loyalty within those customers so that a customer who chooses LVMH for watches for instance, is also inclined to choose an LVMH product for wine and spirits. Diversification also spreads the company’s costs over a number of brands and the revenues as well so that it can always insure good rate of return for investors. 2. For a company like LVMH to compete on a scope that includes champagne, jewelry, fashion, cosmetics, and retailing is logical and even necessary for it to keep a competitive edge because its competitors have implemented the same strategy to fight for market share in the luxury market in all of its segments. The company’s policy aims to build the idea in their customers’ heads that they can always expect the same consistent high-end...
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...In Japan, whether you are in Tokyo, Osaka or Nagoya, just turn your head and Louis Vuitton is everywhere. The celebration of the 30th anniversary of the presence of the illustrious, glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship...
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...LVMH 2012 — ANNUAL REPORT BUSINESS REVIEW CONTENT — Group’s profile 03 06 09 10 11 CHAIRMAN’S MESSAGE FINANCIAL HIGHLIGHTS INTERVIEW WITH THE GROUP MANAGING DIRECTOR GOVERNANCE EXECUTIVE AND SUPERVISORY BODIES A coherent universe of men and women passionate about their profession and driven by the desire to innovate and achieve. An unrivalled group of powerfully evocative brands and great names that are synonymous with the history of luxury. A natural alliance between art and craftsmanship, dominated by creativity, virtuosity and quality. A remarkable economic success story with more than 100,000 employees worldwide and global leadership in the manufacture and distribution of luxury goods. A global vision dedicated to serving the needs of every customer. The successful marriage of cultures grounded in tradition and elegance with the most advanced marketing, industrial organization and management techniques. A singular mix of talent, daring and thoroughness in the quest for excellence. A unique enterprise that stands out in its sector. Our philosophy can be summarized in two words: CREATIVE PASSION. 12 22 36 46 58 WINES & SPIRITS FASHION & LEATHER GOODS PERFUMES & COSMETICS WATCHES & JEWELRY SELECTIVE RETAILING — The values of LVMH Innovation and creativity Because our future success will come from the renewal of our product offering while respecting the roots of our Maisons. Excellence of products and service Because we embody what is most noble and accomplished...
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...analysis for each brand * Analyze these leaders by discipline: visual merchandising, website, e-commerce (if applicable), social media, customer service, PR, special events, advertising. * Prepare a final report (4-6 pages) on your category ranking your three leaders in order of effectiveness with detailed explanations as to your ranking decisions. Oral Presentation on December 4, 2013 Chaumet “The history of Chaumet dates back to 1780 and is closely interwoven with the history of France. Over five centuries, Paris has been celebrated for the magnificence of its jewellers.” 1. Introduction The Company Chaumet * Category Jewellery and Watches * Parent Company LVMH * Name Chaumet International S.A. * Number of employees 147 * Tagline “Bijoux de sentiment, horlogerie d’émotion” STP * Segment Luxury and Fashion – Jewellery and Watches * Target Group High income/Upper class men and women * Positioning History, tradition and savoir-faire LVMH main data for the Jewellery and Watch Sector History Chaumet is a « maison française de joaillerie », producing jewellery as well as watches. The company was founded in 1780 by Marie-Etienne Nitot. He became famous thanks to Joséphine de Beauharnais, his main client, for whom he made stunning jewellery for her wedding to Napoléon. Among his faithful clients, Nitot could also count members of the royal court. Joséphine de Beauharnais, Chaumet’s first muse...
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...LVMH Moët Hennessy Louis Vuitton in Luxury Goods - World October 2010 Downloaded from www.warc.com Scope of the Report Luxury Goods: LVMH © Euromonitor International Scope Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised Learn More To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit www.euromonitor.com or contact your local Euromonitor International office: London +44 (0)20 7251 8024 Dubai +971 4 372 4363 Chicago +1 312 922 1115 Cape Town +27 21 552 0037 Singapore +65 6429 0590 Santiago +56 2 915 7200 Shanghai +86 21 6372 6288 Sydney +61 2 9275 8869 Vilnius +370 5 243 1577 Downloaded from www.warc.com 2 Luxury Goods: LVMH © Euromonitor International Strategic Evaluation Market Assessment Designer Clothing and Footwear Luxury Accessories Fine Wines/Champagne and Spirits Super Premium Beauty and Personal Care Luxury Jewellery and Timepieces Brand Strategy/Operations Recommendations Downloaded from www.warc.com 3 Strategic Evaluation Luxury Goods: LVMH © Euromonitor International ...
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...2. The strength of Louis Vuitton is in its strong, established brand image and international presence. Brand name is what allows the company to de-commoditize luxury products and extract premium from the market. Throughout its history Louis Vuitton has developed a reputation for providing its customers both quality and unique product image. Louis Vuitton products distinguish themselves on five key traits: high prices, excellent quality, aesthetic and emotional value, rich brand history and uniqueness. Solid business model and rapid expansion overseas proved to be a great platform to help establish a high-end international brand image. Ability to control its distribution channels allows Louis Vuitton to capture value added instead of giving it to the middlemen such as suppliers and retailers and to deliver the best quality goods to the customers. Owning shops gives Vuitton control over level of stock, presentation and pricing. Additionally, LVMH is the most highly diversified luxury goods company. Even though LVMH is an acronym of three brands: Louis Vuitton Moet Hennessy, the company owns over 50 brands: 13 apparel and leather goods brands, 20 wines and spirits, 6 retail brands, 10 perfumes, 5 watches and jewelry. This multi-brand strategy that LVMH adopted is another company’s strength. Opportunities exist for Louis Vuitton to continue with its current strategies of establishing large branches worldwide. Louis Vuitton products are designed for wealthy individuals, who demand...
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...print, and secured worldwide patents for it. In this essay, I shall analyze the micro and macro environment of the Louis Vuitton classic handbags, and discuss the its marketing mix. Microenvironment It consists six actors, which are the company, suppliers, marketing intermediaries, customer markets, competitor, and public, these factors are close to the company and can affect the company’s ability to serve its customers. * The company The company itself is the first force in the company’s microenvironment. First, the top managers have the responsibility for setting the company’s mission and strategies. For Louis Vuitton, its mission statement is “to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and...
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...Luxury Brand Management Case of Louis Vuitton 1. Introduction Louis Vuitton is a French fashion house founded in 1854 by Louis Vuitton. LV is mostly famous for its high-class leather bags and travelling trunks. It is also known as Louis Vuitton Moet Hennessy (LVMH) after merger with leading manufacturer of champagne and cognac, Moët & Chandon and Hennessy, in 1987. Louis Vuitton is one of the world most valuable luxury brands with the brand value of $29.9 billion according to the Forbes magazines listing November 2014. Quality craftsmanship, heritage and history are key factors of success for luxury brands like Louis Vuitton. Louis Vuitton has been growing fast due to increasing demand in China. Chinese consumers have quickly risen among the world’s biggest consumers of luxury product and the growth doesn’t seem to end. LV has become extremely popular brand among the fashion conscious Chinese and Japanese consumers. Consumer surveys reveal that it is among the top 5 luxury brands in both countries. The brand is clearly visible in all of the main cities all around the world as it is very easy to find several girls carrying the LV bags, wallets, and others accessories. China is the most essential market for LV, but it still has to concentrate on keeping sales up also in other main markets like Japan. The rise of LV in China and other markets is not a coincidence. It has been achieved through extensive strategic approaches and extraordinary...
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...LVMH: King of the Luxury Jungle SEPTEMBER 2009 Profit from temporary W&S woes to bag the stock at discount prices LVMH is the strongest player in the luxury goods industry, a giant in an industry where fixed costs make scale paramount; the only "two-legged" balanced player, leading with mega-brands in both Leather Goods and Wines & Spirits; enjoying stable group EBIT margins as a consequence Champagne consumer demand weakness, de-stocking and oversupply in 2010 are well understood; W&S concerns have depressed the stock close to 20-year trough multiples and in the same range of smaller and more volatile hard luxury players and other peers; an opportunity in our view On top of LVMH's unrivaled industry position, markets seem to under-appreciate cost-saving opportunities, brand-portfolio rationalization, higher FCF from lower W&S inventory investment, above-average mega-brands' results or support from first-mover EM inroads In a medium-term growth environment, LVMH has the chance to be a key consolidator in the luxury goods industry: a mega-merger with CFR would be a strategic master stroke, placing it ahead of any M&A counter move by competitors SEE DISCLOSURE APPENDIX OF THIS REPORT FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS LVMH: KING OF THE LUXURY JUNGLE 1 Portfolio Manager's Summary We have few doubts about the opportunity of investing in LVMH for the medium to long term. We expect "winners will continue to win" in the luxury industry...
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...1950s: Handbags Reach Cult Status..........7 * 1960s-1970s: The Rise of the Youth Culture And1980s-1990s: The Unisex Bags……….8 * Twenty-First Century: "Man Purse" And Modern Origin……….9 * A casual men's messenger bag……….11 * history and evolution……….13 * Different Old And New And Expensive Bag……….14 * Top 5 Famous Bags..........15 * History And Prices (Bags)……….16 Conclusion * My Survey..........17 Bibliography Website And respondents of the survey……….18 15 Top 5 Famous Bags In The World 1. Louis Vuitton 2. Hermes 3. Chanel 4. Fendi 5. Marc Jacob History And Prices 1. Louis Vuitton is actually synonymous with the term luxury. The company was established in 1854 and is based in Paris. It has been named the most valuable luxury brand in the world for six straight years...
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...years, the brand has opened its market to the online community where customers can find more products on their website for purchase. The product category that accounts for most of consumers’ brand awareness is that of designer handbags. Each designer bag is made of high quality materials with all or some elements hand stitched by craftsmen, thus contributing to their fine workmanship and premium prices. According to the Louis Vuitton website, the company’s mission statement is as follows: “The mission of the LVMH group is to represent the most refined qualities of Western "Art de Vivre" around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy (Lagerfeld, Group Mission and Values)”. The company’s January 2014 press release showed a 4% increase in recorded revenue- €29.1 billion despite the 4% decrease in fashion and leather goods (LVMH, Press Release). Potential...
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...1 Table of Contents Executive Summary .......................................................................................................1 Coach’s History..............................................................................................................2 Coach’s Current Profile..................................................................................................3 Coach’s Future Plans......................................................................................................3 SWOT Analysis .............................................................................................................4 Global Expansion & Challenges ....................................................................................6 Coach’s Competitors ......................................................................................................9 Industry Analysis ......................................................................................................... 11 Short-Term Recommendations ....................................................................................12 Long-Term Recommendations.....................................................................................13 Conclusion ...................................................................................................................14 Bibliography ................................................................................................................16 ...
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