1. Company Background
Louis Vuitton Moet Hennessy, is a France holding company and is one of the largest high luxury group in the world. They owned around 70 top luxury brands and mainly separate in five divisions: Fashion& Leather, Cosmetic & Perfumes, Watch & Jewelry, Wine & Spirits and DFS. The group is on-going to recruit more and more premium brands to merge with the group in order to enhance company value in the world wide. In general, they are an enterprise that owns numerous of luxury brands that retail a range of high-quality finishing goods and purpose to introduce western luxury life over the world, which forced them to become a top multinational corporation.
LVMH group did not have any vision statement. However they have five main …show more content…
They will indented to unitize the outside resources and search the potential vendor who is the specialist of some felid like raw material supplier of leather, select the vendor who carried high quality and affordable cost of material and deal with those vendors project by projects. With this method, they allow to reduce the loss marking and to establish economies of scale. For example, Louis Vuitton has recently taken over Les Tanneries Roux which is a leather supplier who provided top quality leathers. This action reduces the bargaining power of suppliers through limiting the ability of suppliers contrary each other, while LVMH brands can also save costs on their storage fee and able to maintain the quality of products supplied.
Threat of New Entrants (LOW)
In fact, the signature logo and brand loyalty from customer 's awareness are the core elements that brings high revenue earners purchasing of luxury products. However, if without huge investments in marketing and brand heritage historical reasons, there is no room for a new brand to enter in the high luxury industry.
Threat of Substitute Products
Louis Vuitton Moet Hennessy, is a France holding company and is one of the largest high luxury group in the world. They owned around 70 top luxury brands and mainly separate in five divisions: Fashion& Leather, Cosmetic & Perfumes, Watch & Jewelry, Wine & Spirits and DFS. The group is on-going to recruit more and more premium brands to merge with the group in order to enhance company value in the world wide. In general, they are an enterprise that owns numerous of luxury brands that retail a range of high-quality finishing goods and purpose to introduce western luxury life over the world, which forced them to become a top multinational corporation.
LVMH group did not have any vision statement. However they have five main …show more content…
They will indented to unitize the outside resources and search the potential vendor who is the specialist of some felid like raw material supplier of leather, select the vendor who carried high quality and affordable cost of material and deal with those vendors project by projects. With this method, they allow to reduce the loss marking and to establish economies of scale. For example, Louis Vuitton has recently taken over Les Tanneries Roux which is a leather supplier who provided top quality leathers. This action reduces the bargaining power of suppliers through limiting the ability of suppliers contrary each other, while LVMH brands can also save costs on their storage fee and able to maintain the quality of products supplied.
Threat of New Entrants (LOW)
In fact, the signature logo and brand loyalty from customer 's awareness are the core elements that brings high revenue earners purchasing of luxury products. However, if without huge investments in marketing and brand heritage historical reasons, there is no room for a new brand to enter in the high luxury industry.
Threat of Substitute Products