CAPSTONE FINAL PROJECT
Capstone Final Project: Louis Vuitton Analysis
KeiyaHood student, Dean March – Prof, Ph.D., Strayer University, Bus., 499
March 8, 2012
Capstone Project: Select a publicly traded company by researching the Strayer Databases or the Internet. Download the annual report for the most recent year reported for the use in this assignment. Based on your review and analysis of the annual report, prepare a 6 – 8 paper in which you answer the following questions:
Q1. Identify the company’s mission, vision and primary stakeholders.
Q2. Identify the five (5) forces of competition and how it impacts the company.
Q3. Create a SWOT analysis for the company identifying the major strengths,…show more content…
A2.4. Force in Industry: Supplier Power
Biggest competitors: Much of the company’s brand recognition and growth is attributed to perceived scarcity and elusiveness therefore it is not subject to consumer supply demands.
Impact on Louis Vuitton: Scarcity actually benefits the company as its customers are more likely to spend based on fear of loss. Potential detriments could be the result of trade laws but the company is well positioned due to its diverse portfolio.
A2.5. Force in Industry: Barriers or Threat to Entry
Biggest competitors: Economies of Scale
Impact on Louis Vuitton: As consumers rebound from poor economic conditions LMVH becomes highly reliant upon the 20% of the elite in the world to purchase luxury goods making mass produce goods more appealing to the remain 80% of the base.
The Louis Vuitton Brand – LMVH is world renowned and is easily identifiable although care and attention has been taken to maintain the integrity of the brand of each of its subsidiaries transparently. LMVH has consistently outperformed earnings forecasts each year in the last two earning quarters with the United States being the largest consumer of luxury goods at 22%, just behind the rest of Europe at 27% (www.Mornigstar.com, 2012). The 2011 biggest revenue group was leather goods and fashion at 27% and 37% attributed to selective