Louis Vuitton - LVMH and Luxury Goods Marketing Essay

2310 Words Mar 28th, 2013 10 Pages
Case 11-2
LVMH and Luxury Goods Marketing LVMH Moet Hennessy- Louis Vuitton Societe Anonyme is the world’s largest marketer of luxury products and brands. The French company, headquartered in Paris, has been built into a worldwide, billion dollar company with the help of Bernard Arnault, “the pope of fashion.” Arnault said of LVMH, “We are here to sell dreams. When you see a couture show on TV around the world, you dream. When you enter a Dior boutique and buy your lipstick, you buy something affordable, but it has a dream in it.” The companies that today comprise LVMH focused on prestige rather than profit, being family run enterprise, and this prestige continued throughout the decades as the company grew.
Arnault acquires many
…show more content…
Louis Vuitton Moet Hennessy is a company that exudes exclusivity and will continue to be profitable and inspiring in the fashion industry and more.
Discussion Questions:
1. Bernard Arnault has built LVMH into a luxury goods empire by making numerous acquisitions. What strategy is evident here?
There are five market entry strategies including exporting, licensing, contract manufacturing, joint venture, and equity stake or acquisition. Arnault has used the acquisition strategy, that of entering a market entailing investing in assets outside the home country. This is the most extensive form of participation in global markets. Ownership requires the greatest commitment of capital and managerial effort and offers the fullest means of participating in a market. Acquisitions are an instantaneous and sometimes less expensive approach to market entry or expansion. The company has also used mergers and joint ventures over the years. A merger is used when two companies wish to become fully integrated, and the firms no longer exist independently. In a joint venture, a new separate firm is formed and the original companies continue to exit on their own. The company, LVMH is a merger within itself, after Louis Vuitton and Moet Hennessy, a merger between Moet & Chandon and Hennessy, merged in 1987. Louis Vuitton Moet Hennessy is a French multinational luxury goods conglomerate that

Related Documents