Company Corporate And Business Strategy

894 WordsAug 29, 20164 Pages
4. Company Corporate and Business Strategy Generic Strategies Model The generic strategies include cost leadership, differentiation and focus apply in business unit level. Generally, the cost leadership strategy never applicable in luxury industry. This is because most of the consumer purchasing luxury goods do not care about price point. No doubly, LVMH is one of the top world leading luxury products group. Every brand under the group hold its own brand spirits and produce things different from each others. Those brands must have few best seller product line with its signature pattern or design implemented on the saleable goods. For example, Dior has “Lady Dior” bags and Bvlgari has the “Serpenti” collection of jewelry. These differentiations are unique and perceived by customers as difference. Therefore, the product value is enhanced. Due to the limited and uniqueness thus consumer willing to pay for a premium price to buy luxury products. Strategy Clock Model This strategy aims to position a product at the higher price levels, whereas customers willing to buy the product because of its high perceived value as well as high product quality. And this is the normally practices adopted by the luxury brands. They propose to achieve premium prices with high targeted segmentation, promotion and distribution etc. Obviously, LV is one of the brand done successfully in this strategy, it has given a very high profit margin within the group. However, only the top brand products in
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