Louis Vuitton Case Analysis. Management Coursework
You are supposed to address one (1) of the questions from the “Case Question Guide” attached. You should not reiterate the points in the case, but rather you should provide thoughtful reflections/answers to
the question you chose. Use the powerpoints I attached if needed.
CASE QUESTION GUIDE Case # 24: Louis Vuitton Please use concepts and theories covered in class (Chapters 2, 3, 4, 5 and 6, i.e. Porter’s Five Forces, Resource Based View, Value Chain, Business-level Strategies, Corporate level strategies) when you tackle following strategic questions. Main focus: Chapter 6 - Corporate Level Strategy You are encouraged to go beyond the information provided in the case (library sources, recent news articles about the company) when drafting your strategic analysis. Questions: 1. What are key forces in the general and industry environments that affect LVMH’s choice of strategy? (Chapter 2: gen env’t and Porter’s Five industry analysis) 2. What is LVMH’s corporate-level strategy? How does their corporate strategy influence the performance of LV? How does LV’s performance compare to that of its competitors? (Chapter 6 - related-unrelated diversification, M&As, …) 3. What are the challenges facing LV? 4. What are the options available to LV? As a senior manager at LV, what option would you recommend LV adopt? (Chapters 5 and 6)
Louis Vuitton Case Analysis
Student’s Name
Institutional Affiliation
Louis Vuitton Case Analysis
Question 1
The primary forces in the general and industry environment that affect Moet Hennessy Louis Vuitton (LVMH) are competition, leadership, and acquisitions. In particular, LVMH has survived the fashion industry due to its flexibility in modifying its products and services to meet the needs of its accessible, absolute, and aspirational customer segments (Mahbubani & Crossan, 2013). Despite the stiff competition from other large firms, LVMH always retains its market share by providing quality products. Most importantly, through acquisitions, the company has managed to gain control of a significant market share.
Porter’s five forces indicate that the intensity of rivalry and product substitutes, in the leather and fashion, jewelry and watches, spirits and wines, and perfumes and cosmetics industries, is high. Chapter two shows the three primary components that enable an organization to be environmentally aware. They include competitive intelligence, monitoring, and scanning of the operating environment (Dess, Lumpkin, Eisner, & McNamara, 2012). LVMH applies these concepts when diversifying its products and services. That is the reason why it has acquired numerous companies in different sectors to boost its profits.
In chapter six, it is clear that diversification is an appropriate corporate-level strategy that can foster a firm’s growth and expa...
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