The document discusses a strategic analysis of Louis Vuitton, a French luxury fashion house. It includes a PESTEL analysis, SWOT analysis, BCG matrix, and discussion of mergers and acquisitions involving Louis Vuitton. A group of students conducted the analysis for a class project on strategic management. The document outlines the company profile, key figures, and provides details of the various analyses to evaluate the external environment and strategic position of Louis Vuitton.

1. Louis VUITTON

2. TOPIC
Strategic management of LOUIS VUITTON.
Findings on PESTEL Analysis, SWOT Analysis, BCG
Matrix, Porter’s Five Force Model, Value Chain
Analysis, Mergers and Acquisitions
ROLL NO: - NAMES
PG/VU0AP02/MBA IVS-102 RAJESWARI SARKAR
PG/VU0AP02/MBA IVS - 156 PIYA DAS
PG/VU0AP02/MBA IVS - 159 GOURAV KUMAR DUTTA
PG/VU0AP02/MBA IVS - 164 BARNALI PAL
PG/VU0AP02/MBA IVS - 415 SOUMITA KUNDU
PG/VU0AP02/MBA IVS - 464 CAMELLIA MUKHERJEE
PG/VU0AP02/MBA IVS-466 FIRDOUS KHAN
PG/VU0AP02/MBA IVS-471 SAYANTAN GHOSH
PG/VU0AP02/MBA IVS -475 TIYASHA PAUL
Group Members:-
Specialization – HR and Marketing

3. Outline
INTRODUCTION
COMPANY PROFILE
KEY FIGURES OF COMPANY
STRATEGIC MANAGEMENT ANALYSIS OF LOUIS
VUITTON
PESTEL ANALYSIS OF LOUIS VUITTON
SWOT ANALYSIS OF LOUIS VUITTON
BCG MATRIX
PORTER’S FIVE FORCE MODEL
VALUE CHAIN ANALYSIS OF LOUIS VUITTON
MERGERS AND ACQUISITION
CONCLUSION

4. Introduction
In the continuously growing world of business, LHMV it’s
diversification into luxury goods, we will examine in
details the analysis and application of a strategy to the
world’s largest company of luxury brand LVHM Moet
Hennessey – Louis Vuitton.
To start with a brief presentation of this company’s profile
will be provided, accompanied with strategic analysis of
the company. Specifically, the study will include PESTEL
analysis of the company along with, the SWOT analysis,
BCG Matrix, Porter’s Five Force Model, Value Chain
analysis of the company, we will also see the company’s
merger and acquisition. We will lastly mention our relative
conclusion.

5. Company Profile
Louis Vuitton Malletier A.K.A. Louis Vuitton, a
French luxury fashion house.
Founded in 1854 by Louis Vuitton.
Louis Vuitton is one of the world's leading international
fashion houses.
It sells its products through standalone boutiques, lease
departments in high-end departmental stores, and through
the e-commerce section of its website.
Their Products are – luxury bags and leather goods
to ready-to-wear, shoes, perfumes, watches, jewellery,
accessories, sunglasses and books.
The company operates in 50 countries with more than 460
stores worldwide.

6. KEY FIGURES
BY BUSINESS GROUP

7. Strategic Management Of Louis
Vuitton
Suppliers:
Louis Vuitton collections are exclusively produced in the LV
workshops in France, Italy, Switzerland, and USA. Suppliers are
kept secret since many fakes are made.
Market Intermediaries:
DISTRIBUTION MARKETING AND SALES
LOUIS VUITTON exclusively controls the
distribution of its products. A distribution
centre in France sends their product directly
to Vuitton stores around the world.
Sell on their website, stand-alone boutiques
and directly in department stores.
Collaborate with marketing agencies, such
as spring studios to create advertising,
luxury events and manage social media
accounts.

8. Target Market
Demographic Segmentation – Wealthy middle-aged individuals from 35-
54 years old and affluent young fashionable both sex adults aged between 18-34
years old who have disposable income and brand aspirants.
Geographic Segmentation – Most important market in Asia, especially in
China. But also, Europe and USA.
Psychographic Segmentation – 46% of LV customers are self-indulger,
33% are quality seeker and 21% are status seeker.
Lifestyle Segmentation – The slogan “THE ART OF TRAVELLING” sets
new standards for luxury lifestyle.
Usage rate segmentation – Target specifically heavy users. Heavy users
are sent seasonal catalogues as well as invitations to purchase exclusive product
collections to encourage repeated sales and brand loyalty.

9. PESTEL Analysis on Louis Vuitton
Louis Vuitton PESTLE Analysis assesses the brand on its business tactics across
various parameters.
PESTLE Analysis of Louis Vuitton examines the various external factors like
political, economic, social, technological (PEST) which impacts its business
along with legal & environmental factors.
Political Factor
United Kingdom’s decision of exiting the European Union has created a situation
of uncertainty and political instability in the U.K. nations i.e. England, Scotland,
Wales, and North Ireland. This can have serious long-term repercussions on
Louis Vuitton. Also, one other factor is the high import duties on Louis Vuitton’s
products. Nations like China have charge high import duties which creates a
significant price difference from the other nations.

10. PESTEL Analysis on Louis Vuitton
Economic Factor
Countries which impose high luxury tax on a brand like Louis Vuitton creates a
significant price difference in different markets which can cause problems which
do not have solution. Also, the world is witnessing a slowdown in the economic
growth. So, this economic slowdown can cause a “Lipstick Effect” which states
that during the phase of recession customers will tend to buy those luxury goods
which are less expensive.
Social Factor
Since, the company has its roots in Europe (i.e., in France), people tend to rate
the European Luxury items more than any luxury item made in Asian or South
American nation. People also have the tendency to try newer brands which are
more exclusive.

11. PESTEL Analysis on Louis Vuitton
Technological Factor
Apart from selling only on their in-house E-commerce portal or website, Louis
Vuitton should also have a prominent presence on the E-commerce portals like
Amazon, Flipkart etc. It will help them reach to larger audience. Also, an average
person today tends to check its social media more than 6 times a day.
Legal Factor
The most important legal factor for any luxury brand will be “Counterfeiting”.
Counterfeiting remains a challenge throughout the globe for Louis Vuitton.
According to the data from Anti-Counterfeiting group, more than 10% of the
sales in U.K. are lost due to counterfeiting every year.
Environmental Factor
Louis Vuitton should implement processes which will help it in reducing its
carbon emissions. It’s website also has no mention of reducing the textile waste
or minimizing the release of harmful chemicals into the environment. Also, as the
company produces Fur coats, Leather wallets and bags made from animal’s skin;
the company is rated poorly on Animal Welfare.

12. SWOT Analysis on Louis Vuitton
Strength
Easily recognizable because of its logo
and monogram canvas
Brand has its presence in most of the
large shopping hubs and multi-retail
brands of the world.
The brand is available exclusively in
more than 450 stores in 50+ countries.
Weakness
Immense competition in the segment
makes market share growth for Louis
Vuitton slow.
Fake imitations affects brand
reputation and hurt sales.
Opportunities
Engage customers online and increase
business through ecommerce platforms.
Expansion of the brand into emerging
economies targeting rich people with
affluent lifestyles.
Tie-ups with leading hotel chains, fashion
houses, lifestyle events etc can boost
business for Louis Vuitton.
Threats
Fake products all around the world
affects the business.
Economic crisis, pandemics and
recession can adversely affect
Louis Vuitton's business.
Government policies on international
trade can slowdown operations.

13. BCG Matrix of Louis Vuitton
.