Lvmh Report

7586 Words31 Pages
Business Report of LVMH

Group members:

Rining Mutang Beili Yin

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10153456 10095036

Sekit Chubuppakarn Xu Yang

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Mahsa Tolou Sharifi

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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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The Group s latest move will be expanding into LVMH hotel management of the Cheval Blanc brand in Egypt and Oman. This initiative was mainly driven by the demand from its current customers for luxurious travel experiences (Socha, 2010).

2. The strategic position 2.1 External environment
2.1.1 The macro environment: PESTEL framework a. Economic Global economies have been recovering with uncertain fact ors still existing. However, due to its established global presence, LVMH s outlook is positive, both in the major markets developed countries where its leadership position has been firmly secured
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over decades and where people s pursuit for quality luxury is believed to continue; and in emerging markets where the Group s solid foundations has been established and expansion will be accelerated at the right timing (LVMH, 2010). In spite of the economic downturn, the Group has been benefiting from the s trong growth in Asia and resilience in Europe. Recessions come and go, but some individuals are always willing to spend on luxury goods like handbags and watches, which in return pay them back in quality life and admiration from friends (Hazlett, 2004). No matter good or bad economy, it does not have much impact on the spending of those really rich elites. However, according to Bernstein Research, the
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