Lvmh

In: Business and Management

Submitted By hanhtu
Words 2516
Pages 11
1. Executive Summary

Louis Vuitton Moet Henessy (LVMH) is one of the most demanded European leading corporations for luxury products. The corporation owns 60 different prestigious sub-divisional brands with more than 200 stores worldwide. In the current report, the LVMH’s distinctive major core competencies and the leading strategies will be analyzed in relation to its current external risk factors. The corporation’s sustainability is driven by its efficient strategic management of its internal and external environments. LVMH’s strength lies in its multi-divisional brand strategy which reduces the vulnerability to be influenced by particular external risk factors. The prominent positioning through mergers and acquisitions and the efficient human resource management also contribute to the corporation’s success in the market.

However, as LVMH operates in the global market, external environmental factors should also be taken into account. These are, the changes of the global economic environments, structural changes of the major consumer market, and the risk of brand damage based on consumers’ perception. Since all these risk factors are both directly and indirectly related to the profit generation process of LVMH, this report will recommend some solutions to overcome the current risks, for example, focusing on its high profit products lines while it revise its low profit product lines.

2. Company background

Since there have been dramatic growth of the emerging global economies over the past century, the general growth potential of the European luxury products have been positively predicted with the constant consumers’ demands on the European made luxuries (Isenwater et al. 2007, p.3). For example, LVMH is one of the most demanding world leading European corporations in the luxury industry. The corporation possesses various portfolios of 60…...

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