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VRINE Model Resources

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on 20 December 2014

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Transcript of VRINE Model Resources

VRINE Resources Analysis
VRINE Model Capabilities
Louis Vuitton is a French fashion house founded in 1954. The label's iconic LV monogram appears on most of its products, ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewelry, accessories, sunglasses, and books. Louis Vuitton is one of the world's leading international fashion houses; it sells its products through standalone boutiques, lease departments in high-end department stores, and through the e-commerce section of its website.
Produce unique items to LV.
Continue to make buying an item an experience not just a product.
Expand into emerging markets.
Competitive Advantage
Five Forces Model
Threats of new entrant: Low

1) Economies of scale
2) Differentiation
3) Unrecoverable expenses
4) Access to unique factors

Five Forces Model
Buyer Power: Low

1)Vertical Integration
2) Customer sensitivity to price increases is low

Five Forces Model
Threat of substitutes: High

1) Variety of substitutes
2) Quality of substitutes
3) Switching costs
4) Brand identity and loyalty
Five Forces Model
Supplier power: Low/Medium

1) concentrated and control scarce input
2) Firms present a threat of forward integration
3) significant switching costs
4) Luxury goods do not experience price ceilings
Five Forces Model
Degree of rivalry: High

1) Number of firms competing
2) How similar these firms are

Brand Loyalty
VRINE Capability Analysis

Classical and fashionable
Comparable and elegant
Journey Philosophy
New elements
eg: Marc Jacobs
(Minimal Art)

Product design & Innovation

Speedy 30 Limited Edition

Unique distribution system:
company-owned stores

Limited sales number: limited edition

No discount: stable high price

Distribution & Sales


Customized boxes tradition

One-to-one service

Wonderful after-sales services:
lifetime repair guarantee

LV Monogram Vernis
LV cheery

Louis Vuitton – Classical series

Brand, product design and innovation offer a sustain competitive advantage

Positional view

Resourced based view
Brand Identity
Full transcript