Essay on Lvmh Report

7571 Words Apr 29th, 2013 31 Pages
Business Report of LVMH

Group members:

Rining Mutang Beili Yin


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Sekit Chubuppakarn Xu Yang

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Mahsa Tolou Sharifi


Executive summary
LVMH, the world s largest luxury group, came into being with the mergers of Moët Hennessy and Louis Vuitton in 1987. Besides its traditional strengths in wines & cognac and leather & fashion goods, other three are perfumes & cosmetics, watches & jewelry and selective retailing.

In the external environment of part two, the report analyzed the relevant dimensions of the macro environment by use of the PESTEL framework and the luxury industry by the Five forces framework. The global economy, people s expectations on luxury goods, drive for
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Physical resources b. Financial resources c. Human resources d. Intellectual capital 2.2.2 Core competencies


2.3 Culture and strategy 2.3.1 Corporate values and culture 2.3.2 The cultural web a. Symbols b. Organizational structure and power structure c. Control system 3. Strategic choices 3.1 Corporate level strategy 3.1.1 Value-added by corporate parenting 3.1.2 Diversification 3.1.3 Portfolio management

International strategy 3.2.1 Market entry strategy and entry mode 3.2.2 Market selection 3.2.3 Difficulty of imitation 3.2.4 Drivers for internationalisation 3.3 Business level strategy 3.4 Innovation and entrepreneurship 3.4.1 Product and process innovation 3.4.2 LVMH s Diffusion S-curve 3.4.3 Portfolio of Innovation Options 3.4.4 Entrepreneurship 3.2 4. Conclusion


1. Introduction
Moët Hennessy and Louis Vuitton merged in 1987 forming the incumbent luxury goods conglomerate LVMH (LVMH, 2010). The Group s First Half 2010 Interim Report announced double-digit revenue growth rate in all the five business lines that LVMH is active in:


Wines and spirits Fashion and leather goods Perfumes and cosmetics Watches and jewelry Selective retailing

There is no other sector like luxury that the higher the price the more customers desire will be. This is because luxury is a package of tangible product and intangible benefits like

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