Pierre Aubrun
Clémence Becquart
Felix Fabre
Claire Grimond

Fundamentals of strategy: final project

Table of contents

I. Background Information…………………………….………p3
A. Louis Vuitton: the history……………………………………………………………………………………….p3
B. Louis Vuitton: a new era…………………………………………………………………………………………..p4

II. The environment……………………………………………p5
A. The Macro environment……………………………………………………………………….…....p5
B. Industry and sectors…………………………………………………………………………….……p6

III. The strategic capability………………………………….p7
A. Strategic capabilities and competitive advantage…………………………………...…….p8

B. SWOT analysis………………………………………………………………………………………….p10

IV. Proposals for change…………………………..………..p12
A. The market penetration……………………………………………………………………………p12

B. Product development……………………………………………………………………………….p12

C. Market development………………………………………………………………………………...p13

D. Diversification…………………………………………………………………………………………p14

Conclusion………………………………………………..……...p14

Introduction

In this study we are going to discover the mainstays of the famous French fashion house Louis Vuitton. We'll focus first on the background of the leader of the luxury goods market, then we'll figure out its environmental analysis and to finish we'll make some recommendations and proposals for new strategies to put into.

The background
1- Louis Vuitton: the history

Louis Vuitton is one of the famous french fashion house of the world. It has been created in 1854 by its eponymous founder. The Vuitton's family turned the little parisian shop into an empire of above 350 shops employing almost 10000 people. Nowadays, its turnover is about 2.7 billion of euros and its profit exceeds 1 billion again in euros.
Louis Vuitton is controlled by the biggest luxury group in the world: LVMH. The french conglomerate of luxury goods lead by Bernard Arnault. He bought the family firm in the early nineties and made, with the help of Yves Carcelle, CEO of Louis Vuitton, the fashion house become