This website uses cookies to ensure you have the best experience. Learn more

Louis Vuitton Case Analysis

1654 words - 7 pages

Louis Vuitton Case Analysis

Key Issue
Louis Vuitton is a flagship group of LVMH, which had double digit growth during 2010 and 2011. Michael Burke, the new CEO of LV group is uncertain about whether the group can grow sustainable. The main issue he current encounter is that how to push LV to grow steadily and protect LV’s values and heritage from being undermined.

External Analysis

PESTEL Analysis
Political: The global luxury goods market can separate into America, Europe, Japan, Asia-Pacific, and rest of countries by region. Overall, the major luxury goods consumption countries have relatively stable political environment in recent ...view middle of the document...

Sociocultural: In the global luxury goods industry, most of customers regard luxury goods that made in Europe as more valuable products than those made in Asia and US. This behavior brings competitive advantages to the European luxury brands. Moreover, customers in different countries have different purchase behaviors. For instance, some countries’ customers are willing to move away from common recognized brand, because they want to purchase more exclusive products. Furthermore, because of the increasing speed of globalization, people are more likely willing to travel between different countries. These travelers will buy luxury good during their trips. In fact, Chinese tourists contributed over one third of sales in Europe. The luxury goods industry should notice to adjust the actual demand between local people and tourists in Europe region.
Technological: As the popularization of online shopping method, most of luxury companies opened their online shop to provide more convenient shopping experiences for customers. This method can help companies reach more potential customers who live in areas that do not have brands’ physical stores. The technology development also helps the industry manufactories products more efficiently. The introduction of automotive machine partly reduced employees’ level of specialization and increased productivity. However, the improvement of automation also can undermine the appeal of the brands, because the absolute and aspirational customer segments generally want products which are produced by artisans.
Environmental: The global personal luxury goods industry may have negative impact to environmental aspect if the manufactories have poor pollution control abilities. Some companies also destroy instead of discounting their excess product in order to keep the products’ value, which may cause additional waste and recycle pressure, but the case did not provided enough information for the environmental aspect.
Legal: For some companies, acquisition is one of important method to grow companies’ size and profitability, but the acquisition is restricted by law. For example, French law requires that one company should report its purchase action to the other company if it holds more than 5% ownership. If the company uses other ways to circumvent the law, it may face lawsuit issues later on.
Conclusion: Overall, the global luxury goods industry still has high potential to growth sustainably in the future. Since the market of this industry is worldwide, companies’ revenues will not largely affected by a single country or region. The important thing is to keep the balance of expansion between different countries. Companies should also be carful about increasing production effectiveness while retain the heritage value of the brands.

Five-forces Model
Degree of Rivalry: The degree of rivalry is moderate in the global personal luxury goods industry. The industry is very concentrated and occupied by...

Other Essays Like Louis Vuitton Case Analysis

The Case Study of Lv

892 words - 4 pages face the challenge is more likely to get everyone's approval. Customer is not questioned, they can purchase without hesitation. Louis Vuitton as a world-renowned luxury brand, its influence is great. Its brand image related with its sales(LVMH Moet Hennessy Louis Vuitton SA SWOT Analysis 2016). Conclusion East Asia has become a huge luxury market. China luxury consumer make a great contribution to the total global sales of luxury industry. China

Luxury Market Essay

3514 words - 15 pages October 2009 Proprietary and confidential. All rights reserved Proprietary and confidential. All rights reserved Associating with elite culture: staying in line with brand image is key for using social media Luxury brands want to understand how social media can help them promote a unique brand image among consumers Challenge Case studies Louis Vuitton, Burberry and Dior provide examples of how to associate with elite culture, through

Critically Examine the Proposition That the Ruling Handed Down by the European Court of Justice in Google France Strikes an Appropriate Balance Between the Interests of Trade Mark Owners, Competitors...

5327 words - 22 pages /142 22. United States Court of Appeals,Second Circuit, RESCUECOM CORP v. GOOGLE INC, 23. Joint statement from all the Negotiating parties to ACTA, Anti counterfeiting Tokyo - Japan, 2nd October 2010, 24. Mark Sweney, Google wins Louis Vuitton trademark case, 23 March 2010,

Lv in Japan - Summary + Swot + Questions

3167 words - 13 pages CASE: “Louis Vuitton in Japan:” SUMMARY: - LV is everywhere in japan - Know-how and heritage have always been perceived - Aggressive marketing strategy with opening extravagant stores & guerilla marketing events - Opened huge shop in 2002, sales after few days over 1million yen - Japanese market represents half of its profits - After crisis 2008 adapting to changed consumer preferences (lower prices, smaller cities

Japan Cross Cultural Management

3625 words - 15 pages of both countries are different in a way that Sweden would focus on the process oriented ideas, but France would focus on the logical analysis. In France, the boss is the boss and management has a high authoritarian (“Intercultural management(#3),” n.d.). Looking into the culture from USA(Tiffany & Co.) and France(Louis Vuitton), both countries have a task oriented perspectives. If both of the countries works together they would get along

Häagen Daz in China

1015 words - 5 pages Target Group Marketing • Targeting the Chines wealthy upper class • Special focus on young couples and their needs • International and Chinese celebrity endorsement Using Face for Marketing • The company provides vouchers and gifts to their target customers which appears to their target audience as generous and the male recipient to feel VIP Exceptional distribution strategy • Stand shop located in well known street where Louis Vuitton

Case Study - Vertu, Gucci, Lv

1859 words - 8 pages practices on how the three brands can sustain their aura of exclusiveness and fashion status. Finally, the report is concluded with a conclusion and recommendations on how to solve problems; one of which is counterfeiting. Introduction Luxury brands are an innovative concept both from the perspective of a marketer and the consumer. This case study specifically discusses and analyses the three brands i.e. Gucci, Louis Vuitton and Vertu

Diesel | Live, Breathe and Wear Passion

884 words - 4 pages look like just a normal brand because it is everywhere Chanel, Hugo Boss, Gucci, Ferrari, Louis Vuitton, and other luxury brands. I still think it will help them earn more profit and that they will earn more customers if they use intensive distribution. 5. To what extent do you think Diesel can rely on its brand
alone for future growth? How far do you think Diesel’s
growth is directly linked to its organizational structure? Diesel will be

Luxury Goods in Brazil

3295 words - 14 pages its 125-year history in National Museum of China in BJ and Aurora Museum in SH LOUIS VUITTON ‘VOYAGE’ (May – Aug 2011) Exhibited iconic travel pieces and handbags with history of travel in National Museum of China, BJ 35 Source: CTR IMPLICATION Brands targeting the middle class must go beyond the cosmetic appeal of luxury brands. Rather, brands have an opportunity to grow and evolve along with their customers. More than just purveyors

Sephora Case Analysis

1162 words - 5 pages Background Sephora is a successful chain of cosmetics stores founded in France in 1970. In 1997 the company was acquired by Paris-based conglomerate LVMH (Louis Vuitton and Moet Hennessy.) The name Sephora comes from a combination of "sephos", which is Greek for "beauty" and the name Zipporah, the exquisitely beautiful wife of Moses in the Book of Exodus. The Sephora chain includes nearly a 1,000 stores in 25 countries, which includes 250

Twg Marketing

4167 words - 17 pages prestigious and luxury products is not a problem to them. * Target Market Psychographics For the rich in shanghai, their lifestyle is by splurging on luxury goods. The Chinese have a custom of showing off their wealth by buying luxury items such as bags from Louis Vuitton, expensive super cars or going to high end clubs. Luxury items are highly sought after at mass levels and it start to create a trend of a pursuit for luxury items

Related Papers

Louis Vuitton In Japan Case Study

1400 words - 6 pages Unit Four Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jessica Rushing Professor: Dr. Andryce Zurick Date: May 18, 2015 Louis Vuitton in Japan Company Name: Louis Vuitton Topic of the Week: External and Global Environment Synopsis of the Situation As of 2009, the Japanese market accounted for 45 percent of all luxury goods sold globally (Pearce

Analyze Of Louis Vuitton Case Study

872 words - 4 pages with Moët Hennessy, a company that was much more larger than LV, to form the Moët Hennessy Louis Vuitton group. Bernanrd Arnault, ranked as the fourth richest man in the world ( by Forbes, 2007) , was invited to invest in LVMH by the company’s chairman, Henri Racamier. Investing through a joint venture, Arnault ousted Racamier in 1990 and started to sweep a slew of fashion companies into the LVMH fold. Arnault is the chairman and Chief Executive

Louis Vuitton Essay

1171 words - 5 pages , Chanel, Prada, Gucci, Versace, Hermes and so on. v  We believe the rising competition handbags and accessories market is an overriding concern for Louis Vuitton’s stock in the near term. v  Louis Vuitton is undertaking a transformation strategy to evolve into a global lifestyle brand anchored in accessories. However, we believe this transformation will take at least a few more quarters to reap the desired results. v  Increased private label

Individula Louis Vuitton Essay

1810 words - 8 pages it interact with the society. The way of a company behave toward the society and environment is the key for a company to achieve profitability and maintain good reputation as small action give a big impact (Hartman, 2005). In this case, a company good intention will frequently shadowed by it bad steps in damaging society even it is unintentionally done. In contrast for that, Louis Vuitton had practiced their good intention by launching