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LVMH analysis

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malak wahbi

on 12 November 2014

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Transcript of LVMH analysis

LVMH Case Study
Wahbi malak
Bennani nafissa
Sellam imane
Semb Anne-Lene
Rakotoarinia Henitsoa

Luxury Goods Industry
Governed by multi-product and multi-brand conglomerates
An $88 Billion market
In 2003, a market affected by SARS
LVMH analysis
LVMH, from 2 companies to a group
Founded by Louis vuitton in 1854
World's leading luxury products group
Around 50 sub-companies
1,500 retail stores in about 60 countries
Merger with Henessy and Moët & Chandon in 1971
Wines and Spirits
Fashion and Leather goods
Perfumes and Cosmetics
Watches and Jewelry
Selective retailing
BCG matrix
BCG matrix analysis
Fashion & leather goods and watches & jewelry are leaders in their respective markets, their turnovers have increased
Perfumes & Cosmetics' turnover has increased but the SBU's market share is not that important
Wines & spirits' turnover didn't really progress
Selective Retailing is the SBU which is in difficulty
Recommendations towards the BCG matrix
For Fashion & leathers goods & Watches and Jewelry , LVMH has to keep these two SBU
Concerning Perfumes & Cosmetics, they have great competitors in their market, so LVMH has to stenghten its brands
In the Wines & Spritits SBU, there is a slight decrease but with a good management it can be solved
For Selective retailing, we advise an important focus on this SBU, if LVMH wants to keep it
McKinsey Matrix
McKinsey matrix analysis
The position in the market for Fashion & leather goods and Watches & Jewelry is very important, LVMH is an important competitor and one of the leaders in these two business units
Wines & Spritis and Perfume & Cosmetics has an average atractiveness but a competitive strength for cosmetics
The Selective Retail business unit is not very strong neither on atractiveness or competitiveness
Recommendations towards the McKinsey matrix
To promote its growth, LVMH has to focus on Fashion & leather goods sbu as well as Watches & Jewelry sbu
For Wines & spirits and Perfumes & Cosmetics, the group may take the risk to invest in these two sbu, if they choose to do it , they have to be more competitive and increase the attractiveness of some of their brand
The selective retail sbu is more difficult, LVMH can choose to continue investing in it, but at a high risk even if some of their brand are evolving well ( sephora )
25% market share
18% of sales in 2003
Moët & Chandon leader in the champagne market
Direct competitors: Laurent Perrier and Boizel Chanoine
Represents 35% of sales revenue in 2003
Biggest sales in Asia
Main leader: Louis Vuitton
Main competitors: Armani, Chanel and Hermes

The LVMH group as a leader competitors thanks to Dior perfumes
18% of sales revenus in 2003
Main competitors: Yves Saint Laurent, Gucci and Chanel
4% of sales
A lot of powerful competitors: Richemont, the Swatch group,Rolex, ...
The main leader is the Swatch group
LVMH is third in the market after Rolex
25% of sales
Among it: sephora, DFS and Miami cruiseline
The market leader in France: Galeries Lafayette
Full transcript