Louis Vuitton Case Analysis - 1621 Words

University of Windsor 04-75-498 Strategic Management 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†¦show more content†¦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 few large players. These companies do not need compete with price; however, they have high overlap of products’ category. Most of companies have several common characteristics. They have long history and start business in Europe areas; they all provide exclusive products and services backed by their brands; and they all served few amount of wealthiest customers over the world. Threat of New Entrants: The threat of new entrants is very low in this industry. Most of the companiesShow MoreRelatedLouis Vuitton Case Analysis1626 Words   |  7 PagesLouis 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 marketRead MoreCase Analysis : Louis Vuitton895 Words   |  4 PagesJared Hess International Marketing Case Analysis Louis Vuitton in India Summary In 1999, the French leading luxury brand, Louis Vuitton, decided to enter the Indian market. Maharajahs, is a Sanskrit title given to those in India who have the title of â€Å"great king†, â€Å"high king† or â€Å"great ruler†. The Maharajahs have been very familiar with Louis Vuitton since the late 19th century. This relationship between the Maharajahs and the Louis Vuitton brand allowed the decision of entering the Indian marketRead MoreAnalysis on Louis Vuitton Case Study2237 Words   |  9 Pages1. What has made Louis Vuitton’s business model successful in the Japanese luxury market? 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We will discuss the remote, industry, and operating of the external environment along with the factors involved in the global environment utilizing the S.W.O.T., P.E.S.T.L.E., RVINE, and Porter’s Five Force analysis tools. Known as one of the oldest French luxury fashion houses, â€Å"Louis Vuitton†, an international, well-established brand mostly famous for its craftwork leatherRead MoreLouis Vuitton Porters Five Forces Analysis1298 Words   |  6 PagesDescribed in this paper is Louis Vuitton’s (LV) evaluation of the external and the global environment of LV in Japan. We will discuss the remote, industry, and operating of the external environment along with the factors involved in the global environment utilizing the S.W.O.T., P.E.S.T.L.E., RVINE, and Porter’s Five Force analysis tools. Known as one of the oldest French luxury fashion houses, â€Å"Louis Vuitton†, an international, well-established brand most famous for its craftwork leather bags andRead MoreLouis Vuitton : The World Known Luxury Leather Finally998 Words   |  4 PagesIn 1854, Louis Vuitton Malletier run his own company in Paris (France). That is, as we know, Louis Vuitton (LV). The brand grows into the world-renowned luxury leather finally. According to our case, his success is based on three rules. That is, to master his savoir, to provide excellent service to his customers and to innovate continuously. Besides, in 1987, the company of LV merged with Moet Hennessy that was a company much larger than it to form the Moet Hennessy Louis Vuitton (LVMH) group. Moreover