Timing is crucial, especially in the fashion business, where, if the moment passed, it is safe to assume that there will be no second chance.
One crucial point where this model does not fully fit LVMH is the disadvantage of local responsiveness. Local responsiveness is not completely disregarded by LVMH, since, as stated above, it relies much on customer satisfaction and customisation, in terms of marketing and PR, but it certainly lacks in product design, since products are not customised per se only in very rare cases.
Local responsiveness includes flexibility, proximity and response time. The most important point LVMH effectuates is customer loyalty.
Many top brands back the company e. On the other hand, it does describe a similar situation in which any company can find itself in, if they do not consider local responsiveness.
In order to fully assess all possible benefits and reasons behind this adopted strategy, a SWOT analysis will be performed and each point specifically described and analyzed. LVMH has throughout the years of its establishment applied the multi-brand strategy, which is thoroughly discussed in this paper.
Since the LVMH brand is established in over five different divisions, ranging from wine to perfumes to fashion, customer will find it easy to recognize the well-known brand name on each of these products. LVMH has done so since the first acquisition of Celine Fashion House in and the further on expansion into the wine business with the acquisition of the Champagne brand Pommery inthe perfume company Kenzo and cosmetics company Guerlain.
This allows LVMH to stay in control of all its stores and the therefore connected variables such as staff, product, and merchandising at all times. Needless to say that some types of structure are indeed mutually exclusive and if combined in a differentiated way can lead to catastrophic results for the company.
Having said that, it is not the stores themselves that are so impressive, but rather the fact that LVMH is completely retail. Flexibility describes the capability of customisation, where all needs and cultural elements of a certain customer group are taken into account and adapted to.
Further, the multi-business product model states that within a certain division the organisational design can vary between global functional, matrix or even geographical. This is of course a very simple example and describes a situation which LVMH has mastered by now i.
Broad Portfolio Being set-up in over five quite different divisions, LVMH diminishes the risk factor, since if one division makes less profit than estimated, the other four divisions act as a balance and the company has successfully diminished the risk factor. LVMH guarantees amongst differentiation and premium designs, the most influential characteristic of all: This not only helps the developing brand to establish its name in the market under one of the biggest luxury conglomerates in the world, but also allows LVMH to set foot into new markets and expand in new directions.
This method is rather rarely applied, even in the same industry competitors apply a healthy mix of retailers and wholesalers. Another point is the massive potential of market force LVMH can help developing brands with. Besides an analysis of the multi-brand strategy, its strengths and weaknesses, while assessing future opportunities and threats for LVMH, this paper also gives an overview of the structure of LVMH.LVMH set to unite luxury & digital in multi-branded ecommerce platform.
Vivian Hendriksz | Thursday, March 09 London - Although Bernard Arnault, CEO of luxury conglomerate LVMH, LVMH said to launch multi-brand. "LVMH's core competence is its CEO and chairman Bernard Arnault," said Ashok Som, professor of global strategy and chair of the management department at the ESSEC Business School, Paris.
"It seems completely counterintuitive that a single person can be the strength of such a large, diversified multi-brand conglomerate. Case Study LVMH: Managing A Multi-brand Conglomerate Team 5: Ilario Fulvio Giannetti Chen Peng Priyesh Salunke Harjeev Sabherwal Inna Zinina What does globalization mean to the luxury industry?
LVMH: Managing the multi brand conglomerate Case Solution,LVMH: Managing the multi brand conglomerate Case Analysis, LVMH: Managing the multi brand conglomerate Case Study Solution, Answer no.1) LVMH diversification strategy gave them a competitive advantage over their competitors.
LVMH Moet Hennessy Louis Vuitton, based in France, is one of the worlds leading luxury goods companies.
It operates in wines, spirits, fashion goods, leather goods, perfumes, cosmetics, watches, LVMH: Managing the Multi-brand Conglomerate | The Case Centre, for educators. LVMH has throughout the years of its establishment applied the multi-brand strategy, which is thoroughly discussed in this paper.
Besides an analysis of the multi-brand strategy, its strengths and weaknesses, while assessing future opportunities and threats for LVMH, this paper also gives an overview of the structure of LVMH.Download