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Corporate Level Strategy:
Transcript of Corporate Level Strategy:
Corporate Level Strategy:
The business started when a sixteen year old Louis Vuitton moved to Paris to start an apprenticeship as a trunk maker...
The Louis Vuitton heritage
The turning point
The birth of LVMH:
The Marc Jacobs Era
Louis Vuitton in the World
how it all started...
rectangular shaped trunks
hard, patterned canvas
Vuitton’s success was built on three rules: to master his
, to provide excellent service, to innovate continuously.
Since the very beginning the Louis Vuitton maison was focused on an èlite of customers.
As the company thrived , duplicates of the striped canvas started to appear. To avoid being copied, Georges introduced the monogram.
A French multinational luxury goods conglomerate
The CEO, Bernard Arnault, and the Board of Directors
The market where LVMH operates
and key figures of the business group
Revenues and Profits
Louis Vuitton as flagship of the group and its CEO
watches and jewelry
Key of strength:
trade off between modernization and innovation through machines and robots, and the handmade practices focused on details
quality control process
product features and performance
technology and innovation
top quality materials
employee, skill, training and experience
sales and marketing
improve the efficiency
ultra high importance
business men and women
high disposable income
seekers of a luxury experience
A corporate strategy
Why is Louis Vuitton such a strong and solid firm?
External Analysis > Social and cultural
Internal Analysis > Strengths and competences
Technological Progress > Machinery and safety
Vision > Asia, grey market, online shops
Business Strategy > Large target
Differentiation > Few different products
Strong brand > Recognizable Logo
"Luxury is not how much you can buy. Luxury is the knowledge about how to do it right, how to take the time to understand and choose well. Luxury is buying the
Why is it so globally relevant?
Arnault is the only declared major shareholder in LVMH: he ownes 47.64% of the LVMH’s stock (with 42.36% held through Christian Dior S.A. and 5.28% held directly) (2010) and 63.66% of voting rights (59.01% by Dior and 4.65% directly)- a further of 2.43% of shares were declared as a treasury stock, with the remainder being free float.
to expand with new products which are complement
to use your resources an capabilities more and better
to lower costs by cross-business sharing or by transferring the resources and capabilities
to transfer a strong brand in another business
After a long, successful period, Georges decided to start the global expansion by opening a Louis Vuitton store in New Bond Street, London.
Our journey has ended...
Thank you for your attention!
"There are four main elements to our business model - product, distribution, communication and price. Our job is to such a fantastic job on the first three that people forget all about the fourth."
“What I have in mind are things that are deluxe but that you can also throw into a bag and escape town with, because Louis Vuitton has a heritage in travel.”
In 1997 Marc Jacobs was appointed head designer of the maison: he was the one who inaugurated men's and women's ready-to-wear collection
INCREASE OF PRODUCTION IN-HOUSE
CONTROL OF THE DISTRIBUTION CHANNEL
By the 80s the company owned 95 stores
Henri Racamier was an astute business man: he understood that to increase profits it was necessary to push for a rapid global expansion. He took LV public and listed it on the French Burse and the NYSE.
diversification of products
expansion of manufacturing
introduction of new technologies