Louis Vuitton : The World Known Luxury Leather Finally

Louis Vuitton “was established in France in 1854 by Louis Vuitton and became known as one of the oldest French luxury fashion houses” in the industry (Pearce & Robinson, 2013, p. 14-2). The firm’s products range from high quality “leather goods, handbags, trunks, shoes, watches, jewelry, and accessories”; manufactured by highly skilled and expensive laborers in France (Forbes.com, 2016). In addition, Louis Vuitton market their products “in 50 countries with more than 460 shops and generates more than €7-billion ($9.5-billion U.S.) in annual sales” (Wendlandt, 2013).

Another challenge for Louis Vuitton is the market and brand dilution as it has already entered and successfully fit in the Japanese market. The products have already maintained the “acceptable” group, and the company has become to feel difficult to increase the revenue. The figure provided in the case showed that nearly half of the Japanese have Louis Vuitton-monogrammed items by the time of 2007. This seemed to make LV prevalent but not luxury any more. To maintain its brand image, it is

This report contains the analysis of value and culture of reputable apparel retailer H&M, as well as three analysis method, which is PETEL, Porter’s five forces, and VRIO framework, to analyse the external influence factors, competitors, and competitive advantages of H&M.

For the company to ensures success in its operations there is need to cultivate customer loyalty and facilitate efficient supplies, differentiator linkage between operations and buyers must be put in place. This will be facilitated through some ways. To cater for customer needs the company will have to ensure it adopts a competitive pricing strategy against the existing competitors and new entrants in the market. The company has a lean pricing policy and to take advantage of its off- price apparel strategy. The customer’s loyalty has to be sustained through the low prices they enjoy

* Procurement: As it is the second Europe’s cloth retailer company, for the production H&M uses a lot of material and workers so its mains recourses are material, labour and energy. That is why small changes in prices can affect the company’s profit a lot, and the fact that it does not own any manufactories causes some problems in controlling the production’s prices. However, not owning the factories can be an advantage in some cases. Indeed, if a problem appears, H&M can easily change its suppliers. Moreover, due to its huge size, H&M can easily manipulate with its suppliers to have the best quality at the lowest production’s price.

The case study Preserve the Luxury or Extend the Brand presents a fictional dilemma, based on a real company, faced by Chateau de Vallois, a prestigious and famous wine-producing estate in the Bordeaux region of France. De Vallois is a family owned and run business; part owners are Gaspard de Sauveterre - a 75-year old majority owner, and equal partial owners: Francois de Sauveterre – Gaspard’s son and the chateau’s CEO , and Claire de Valhubert – Garspard’s granddaughter. De Vallois had fallen into a slow decline under its previous owner, but Gaspard along with Jean-Paul Oudineaux, his estate manager, had restored the chateau and since then de Vallois had been steadily profitable

With the rapid development of social economy, the public tends to focus on the social responsibility of the company, as well as feedback to the society, rather than pay close attention to how to create interest in the company. Especially, environmental protection and human rights has became the most pressing social phenomenon. Under this

Most luxury brands have been family-owned or -controlled and, consequently, were single-brand firms for the most part. However, mergers and acquisitions have been growing in the industry, with LVMH leading the way. Our strategic recommendation is to follow LVMH’s lead and acquire a multitude of diverse companies to build the Gucci portfolio.

LVMH, known as Moët Hennessy • Louis Vuitton, is a French conglomerate and the largest producer of luxury goods in the world. LVMH was formed in 1987 with the merger of Moet et Chandon a champagne manufacturer, Hennessy a cognac manufacturer, and Louis Vuitton a fashion house.

In this paper I will discuss Macy’s Incorporated by analyzing their business level strategies to determine which I think is the most important to their long term success and if I think it is a good choice. I will analyze their corporate level strategies to determine which I think is the most important and whether or not I believe it is a good choice. I will analyze the competitive environment to determine the corporations’ most significant competitor and compare the two companies’ strategies at each level and evaluate which company I think is most likely to succeed in the long term. Once the

Louis Vuitton is considered under the luxury goods industry. The luxury goods industry is a high profitable industry with low outside threat. There are only few large players in the industry and they server to the wealthiest people in the world. The luxury companies have high power to control the price so they have ability to grow sustainably.

Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Asia. In order to expand successfully LVMH must evaluate challenges that may arise and get in the way of their successful expansion. In the Asian market, LVMH must deal with political and cultural uncertainties, the threat of counterfeit products, and the increased cost of products in Asia compared to France.

Being a an international brand, there is a level of dependence on Italian markets with 90% of the stores situated in Italy and the equalisation crosswise over America, Paris and distribution over different countries of Asia, Europe, Canada and others. In spite of the fact that the model promotes luxury end products, it has been distinguished there is a related low level of client management which couples this recommending there is a need to take a shot at administration to guarantee a complete shopping background and guarantee rehash business inside of the current client base (Liesch, et al.,

LVMH’s brand portfolio is a catalogue of the finest things money can buy. Arnault said, “A Star brand is timeless, modern, fast growing and highly profitable.”[iii] LVMH has positioned its brands strongly in the luxury segment offering more than 50 different brands under their five core competencies. LVMH has been successful through all of their various brands in their portfolio giving them each their independence and creativity. “LVMH is well known for leaving much operational and marketing freedom to the various brands it owns.”[iv] “LVMH has done an excellent job of brand positioning, says Ben Cavender, senior analyst at China Market Research Group. It has succeeded in securing the particularly enviable position of gaining a following among the top percentage of China’s wealthy. As the financial crisis stretches on, LVMH customers in China still have money to spend.[v] “LVMH’s brand imaging, which relies heavily on pushing its European heritage, is so successful that it has benefited other brands by proxy, says Paul French, one of the founders of Access Asia, a group dedicated to tracking regional consumer and marketing trends. “Everyone hangs on the coattails of Louis Vuitton’s brand imaging in China.”[vi]

Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and