Course:  Strategic Management Lecturer:  Alar Kolk Group presentation:  Jekaterina Antsiferova Anna Shishkova Heli Tõnstein
T he Art of Travel
How Louis Vuitton took over the World?
Brand Ranking <ul><li>Global Ranking </li></ul>Source:  http://interbrand.com/en/best-global-brands/best-global-brands-200...
MODERN AGE  (1937-1996) PRESENT  (1997 - now) Business Models for different periods EARLY DAYS  (1854-1892) GOLDEN AGE  (1...
CAPABILITIES Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers EARLY DAYS   (1854-1892) K...
CAPABILITIES New Stores Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner -...
CAPABILITIES Globalizing Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner ...
CAPABILITIES Globalizing Production Marketing Fighting counterfeit products COST STRUCTURE Production related costs PARTNE...
Keys to success <ul><li>Mass marketing </li></ul><ul><li>Deploying mass-marketing techniques- celebrity endorsement and sp...
Future Business Model RECOMMENDATIONS I nnovation and Diversification : 1.      clothes for Kids (ready-to-wear) 2.      s...
Future Business Model RECOMMENDATIONS To develop new ideas into marketable products: 1.  cooperation with Amazon (  e-book...
Future Business Model Belts, Scarves & Accessories Watches Jewelry Eyewear Books and pens <ul><li>R eady to wear </li></ul...
Future Business Model <ul><li>RECOMMENDATIONS </li></ul><ul><li>Diffusion </li></ul><ul><li>Geographic expansion . </li></...
Conclusion Current rise of Louis Vuitton is not a coincidence  -  rather something achieved through a good business strate...
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Louis Vuitton Business Model Evolution

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ouis Vuitton Malletier – commonly referred to as Louis Vuitton (French: [lwi vɥitɔ̃], commonly /ˈluːiː viːˈtɒn/), or shortened to LV – is a French fashion house founded in 1854 by Louis Vuitton. The label is well known for its LV monogram, which is featured on most of its products - this ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, and books. Louis Vuitton is one of the world's leading international fashion houses; it sells its products through standalone boutiques, lease departments in high-end department stores, and through the e-commerce section of its website.[2][3]

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  • Purpose of the research :
  • Status: The high status has been enforced through carefully targeted advertising in high-end publications and selective distribution.
  • Louis Vuitton Business Model Evolution

    1. 1. Course: Strategic Management Lecturer: Alar Kolk Group presentation: Jekaterina Antsiferova Anna Shishkova Heli Tõnstein
    2. 2. T he Art of Travel
    3. 3. How Louis Vuitton took over the World?
    4. 4. Brand Ranking <ul><li>Global Ranking </li></ul>Source: http://interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx (25.03.2011) <ul><li>Luxury Brand Ranking </li></ul><ul><li>LV - Absolute Leader </li></ul>
    5. 5. MODERN AGE (1937-1996) PRESENT (1997 - now) Business Models for different periods EARLY DAYS (1854-1892) GOLDEN AGE (1893-19 3 6)
    6. 6. CAPABILITIES Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers EARLY DAYS (1854-1892) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Stores in France and London CUSTOMER RELATIONSHIPS P ersonal assistance TARGETED CUSTOMER Travellers of high class society and royalty VALUE PROPOSITION Luxury Quality Luggage boxes Trunks Special orders
    7. 7. CAPABILITIES New Stores Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner - ship in the US GOLDEN AGE (1893-1936) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Exhibitions Newspapers Gossip CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs TARGETED CUSTOMER Imperial familys Aristocrats Artists Writers Cosmopolitan travellers Rallie drivers Rich Americans Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Boxes Packing Trunks Women handbags Perfumes
    8. 8. CAPABILITIES Globalizing Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner - ship s Known personalities MODERN AGE (1936-1996) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Global campaigns CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs TARGETED CUSTOMER Prestigious clients Luxury shoppers (Americans, Japanese, Chinese) Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Boxes Trunks Women handbags Perfumes Briefcases Bags for Men
    9. 9. CAPABILITIES Globalizing Production Marketing Fighting counterfeit products COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partnerships (no franchise) Known personalities Model agencies THE PRESENT (1997-...) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Global campaigns Magazines louisvuitton.com CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs Exclusive club TARGETED CUSTOMER Luxury shopper s age 50- ... age 25- ... High income men & women Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Leather goods: Luxury luggage Bags Accessories Fashion goods: R eady-to-wear S hoes Watches Jewelry
    10. 10. Keys to success <ul><li>Mass marketing </li></ul><ul><li>Deploying mass-marketing techniques- celebrity endorsement and sport sponsorship. </li></ul><ul><li>Control </li></ul><ul><li>“ We do everything ourselves from creativity through manufacture and design.” - CEO Yves Carcelle. </li></ul><ul><li>Status </li></ul><ul><li>Gain higher sales, retain your high status. </li></ul><ul><li>Differentiation </li></ul><ul><li>By its products, services, channels. </li></ul>
    11. 11. Future Business Model RECOMMENDATIONS I nnovation and Diversification : 1.      clothes for Kids (ready-to-wear) 2.      shoes for Kids (shoes) 3.      schoolbags, briefcases (bags) 4.      leather covers available for Kindle e-book (bags)
    12. 12. Future Business Model RECOMMENDATIONS To develop new ideas into marketable products: 1.  cooperation with Amazon ( e-books - Louis Vuitton City Guides and Travel Books) 2.  cooperation with Russian artists to launch limited edition of special designed items 3.  distributed concreation with customers. Create a trend for making collection of limited edition of products in collaboration with consumers.
    13. 13. Future Business Model Belts, Scarves & Accessories Watches Jewelry Eyewear Books and pens <ul><li>R eady to wear </li></ul><ul><li>clothes for Kids </li></ul><ul><li>Shoes </li></ul><ul><li>Shoes for Kids </li></ul><ul><li>B ags and boxes </li></ul><ul><li>schoolbags </li></ul><ul><li>leather covers for Kindle </li></ul><ul><li>E -books to amazon </li></ul><ul><li>C ooperation with Russian artists </li></ul><ul><li>C o-creation with customers </li></ul>New directions INNOVATION NEW PRODUCTS SERVICES
    14. 14. Future Business Model <ul><li>RECOMMENDATIONS </li></ul><ul><li>Diffusion </li></ul><ul><li>Geographic expansion . </li></ul><ul><li>T o venture into untapped market - Russia , China, India . </li></ul>RUSSIA
    15. 15. Conclusion Current rise of Louis Vuitton is not a coincidence - rather something achieved through a good business strategy. Innovation is the key to make the Universe !

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