2. • Founded in 1854 by Louis Vuitton
• CEO: Michael Burke
• Headquarters: Paris, France
• Industry: Fashion and retail
• Website: louisvuitton.com
• President: Bernard Arnault
• Art Director: Marc Jacobs
• Net worth: $25.9billion
• Employees: 114,000 in over 70 countries
• Distribution channels: 3384 stores
3. In 1854, Vuitton opened his first store in Paris on Rue Neuve
des Capucines and founded Louis Vuitton Malletier a paris.
In 1858, he introduced his flat-bottom trunks with Trianon
canvas which were lightweight and airtight.
By 1885 the company opened his first store in London, England
on Oxford Street.
In 1892, Vuitton died and the Company began to make
handbags.
In 1896, the company launched its famous and legendary
Monogram Canvas and made the worldwide patent on it.
This marked the Golden age of Louis Vuitton.
LV is elegant, practical, prestigious, luxurious,
desirable, stylish and high quality and value.
4. • Handbags
• Small leather goods
• Travel wear
• Accessories
• Shoes
• Jewelry and timepieces
• Personalization (Mon Monogram)
• Gift inspirations
• Books and writing
• Wines and spirit
5. 1. The brand is one of the oldest fashion houses
2. The brand is easily recognizable
3. The brand has a strong presence
4. The brand is available exclusively in its own stores
5. The brand has a clientele including
international celebrities
6. Largest luxury brand with exclusivity
7. Superior craftsmanship
6. 1.The brand is available only in its exclusive stores
2. Cash flow
3. Too much focus on specific brands
4. Lack of attention and neglecting smaller brands
7. 1.The Company needs to adapt to the
current fashion trends
2. The company can offer once in a year discounts
for its customers
3. New image revamps
4. Continuous innovation and support
5. Growing markets for luxury goods in
Asia Pacific countries
8. 1. The brand is counterfeited all around the
world
2. Economic crisis can hurt the brand sales in a
negative way
3. Rising advocacy against the use of animal
skins
4. Intense increasing competition
9. -As an exclusive brand with its retail stores across the world,
Louis Vuitton still has a long way to go before it reaches its maximum potential.-
Untapped potential markets
Brazil, India, South Africa, Southeast
Asia
10. Branching out to different luxury
product categories such as,
perfumes, cosmetics, jewelry, and
even famous restaurants is
another possible growth strategy.
11. Merging with other famous brands like,
Gucci will provide huge economies of
scale as well as extended customer
base, and taking over small individual
brands will also increase market shares..
12. Price is not the main issue because
the customers seek uniqueness and
prestige in luxury products.
13. Threat of new
entrants –
Moderate to low
Threat of
Substitute –
Moderate
Bargaining
Power of Buyers
– Low
Bargaining
Power of
Suppliers –
Moderate
Current rivalry –
High
14. Too many Counterfeits
High cost, low profit
Reluctance to expand
Too many brands and low profit brands.
Over focusing on a specific customer group
15. Establishing Anti-Counterfeiting Trade Agreement
(abolishing counterfeits)
Lower R&D cost
Expand into emerging markets
Focus on image and quality
Differentiation to create a competitive advantage
and uniqueness
16. -Quote
"If you control your factories you control your
quality, and if you control your distribution,
you control your image." - Bernard Arnault
