Louis Vuitton Möet Hennesey (Lvmh) Essay

5847 Words May 22nd, 2011 24 Pages
ABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive …show more content…
Brands can not survive relying on domestic markets. A worldwide distribution network is fundamental. The industry has its centre in 3 cities: Paris, Milan and New York, where any luxury business needs to be, making it difficult for start ups to develop their businesses in other parts of the world.
Suppliers The power of suppliers could be considered medium. The industry is 100% dependable on a supplier that can assure a supreme quality. However the supplier has limited choices since the market is controlled by few operators.
Buyers Considering the buyer as the final consumer; where the decision to buy is nurtured by the fantasy and desire of style; buyers would only buy if all their expectations are fulfilled. In this context it is considered to be a medium competitive pressure since buyers can easily switch brands. However brand awareness and uniqueness can prevent the easy switching.
In the case of retailers as buyers; the competitive strength is considered medium. Shelf space is a key element for luxury companies. Indeed in the 20th century the expansion of the retail industry to specialty stores, chain stores and retail centres has changed the business. Discounts, cooperative advertising, volumes and exclusivity are some of the elements that put pressure on the industry (Frings 2005).
Moreover there is a possible integration strategy affecting the retailers' power.
Substitutes Considering the industry as a whole; the analysis should take in account the

Related Documents