LVMH Case evaluation
Agenda Luxury goods IndustryAbout LVMHLVMH :: Business diversification Strategy OverviewLVMH :: Core competency & Competitive advantageStrategy EvaluationKey FactorsPorter Five ForceValue ChainBusiness Issues & ChallengesSWOT Conclusion & Recommendations
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Luxury Goods Industry  Specific target consumer
 Affordability of  Luxury goods :: Increasing
Increase in House hold Income level
 Industry leader :: LVMH                                                                                                                                                                                                                                                   Louis Vuitton Moet Hennessy Louis Vuitton Moet Hennessy Founded in 1987
 More than 50 “Brand Portfolio”
 1,723 Retail outlets (as of 2005)Business Diversification HOUSE OF LVMH
Strategy OverviewMARKETING BUZZSTAR BRANDRIGHT DESIGNBRAND HISTORYQUALITY CONTROLE
Core Competency & Competitive AdvantageCore Competency Product & Service Quality
Innovation
Training & Skills Development Competitive Advantage Controlled Distribution
 Marketing Activity
All Luxury SegmentStrategy Evaluationa) Key Factor AnalysisBusiness Diversification Product & Service QualityBrand ImageInnovationTraining & Skills DevelopmentControlled Distribution
b) Porter Five ForcesLesser InfluenceMarketing supportProduct quality Accountable bargaining power Lesser influence by buyersSpecific Target ConsumersLess fear of substitutes

Lvmh case evaluation