Kayla Blazier
10/20/15
Case Study: Louis Vuitton
Introduction
Louis Vuitton is an international personal luxury goods company that is headquartered in Paris, France. In 1987, the company merged with Moët Hennessy to form LVMH group. They operated 5 main businesses: wines and spirits, perfumes and cosmetics, fashion and leather goods, watches and jewelry, and selective retailing. Like most companies, LV suffered from a slow growth rate during the economic recession in 2008. However, the economy has seen rapid growth over the past two years and now there is question whether the growth is sustainable.
Strategic Analysis
Environmental Analysis
The political environment of the company varies by each country the company is located in. Political …show more content…
Online shopping, or e-commerce has grown in popularity over the past few years. As LV created an online market, they could not sustain exclusiveness but it gave them a larger customer base. It also allows countries without physical stores to access and purchase the products. Another technological growth decision that LV made was an increase in automated machines. This led to less specialized workers and an increase in overall productivity. This new technology seems to be an issue because customers want handcrafted and artisan-made products. Automation is taking away from the quality of the brand’s …show more content…
There are no direct substitutes in the market, but lower priced items would be considered substitutes to some. Counterfeit products are a large threat to this market because the quality to make the fake products is increasing, therefore, harder to detect. Products like Prada, Dior, Chanel, Hermes, and Armani are all large-scale luxury goods brands in the industry. A customer could consider any of the competitors as substitutes to Louis Vuitton because they are all made from luxury materials and have a reputation as a company based on traditions and
10/20/15
Case Study: Louis Vuitton
Introduction
Louis Vuitton is an international personal luxury goods company that is headquartered in Paris, France. In 1987, the company merged with Moët Hennessy to form LVMH group. They operated 5 main businesses: wines and spirits, perfumes and cosmetics, fashion and leather goods, watches and jewelry, and selective retailing. Like most companies, LV suffered from a slow growth rate during the economic recession in 2008. However, the economy has seen rapid growth over the past two years and now there is question whether the growth is sustainable.
Strategic Analysis
Environmental Analysis
The political environment of the company varies by each country the company is located in. Political …show more content…
Online shopping, or e-commerce has grown in popularity over the past few years. As LV created an online market, they could not sustain exclusiveness but it gave them a larger customer base. It also allows countries without physical stores to access and purchase the products. Another technological growth decision that LV made was an increase in automated machines. This led to less specialized workers and an increase in overall productivity. This new technology seems to be an issue because customers want handcrafted and artisan-made products. Automation is taking away from the quality of the brand’s …show more content…
There are no direct substitutes in the market, but lower priced items would be considered substitutes to some. Counterfeit products are a large threat to this market because the quality to make the fake products is increasing, therefore, harder to detect. Products like Prada, Dior, Chanel, Hermes, and Armani are all large-scale luxury goods brands in the industry. A customer could consider any of the competitors as substitutes to Louis Vuitton because they are all made from luxury materials and have a reputation as a company based on traditions and