Executive Summary 3 Analysis of Current Situation 3 Objectives 4 LVMH, an international group 4 The corporate structure 6 The luxury market 8 Differentiation Strategy 11 Diversification strategy 12 Competitive context 14 Synthesis and perspective 15
The current outstanding performance of Moët Hennessy - Louis Vuitton or LVMH in the international marketplace necessitates effective management strategy to maintain its competitive position. Also, the continuous growth in the sales and profits of the Company supported by its existing strengths and competencies needs to be protected from harmful business trends that may affect its constant development. Thus, there is a need to come up with practical and valuable strategies that will sustain market performance.
Analysis of Current Situation Considered as world’s leading luxury goods company and home of most expensive and sought after brands, Moët Hennessy - Louis Vuitton or LVMH remarkably established its upscale market position since its was founded in 1987. This French holding company consists of over 60 globally celebrated brands in five key sectors in which their products and services are categorically grouped namely Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, and Selective Retailing. In their recently publicised revenue report for the third quarter (Q3) this year, LVMH continuously develop and sustain its global market position particularly in Europe, US and Asia in terms of financial performance.
Essential to the concept of a luxury product is a degree of scarcity which in turn justifies the high price . Today, LVMH incessantly excel in the chosen field of industry by using its brand development strategy and uninterrupted expansion of its international retail network.
* To maintain the continuous increase in sales and surpass last