Strategic Analysis- Understanding the Global Luxury Brand A case study on LVMH

Asmita Basu Chatterjee

Abstract


 

Abstract

 

Nowadays consumers thrive for value addition to their consumption by means of brand recognition. The brand association provides intangible values to the consumption of the customers. The changing profile of the customers poses a challenge for companies even with established brands. In case of luxury goods market, big brand such as LVMH, a group founded by Moet Hennessey and Louis Vuitton SA in Paris, also passes through bigger challenges. LVMH is a family run group with 75 houses, 1,63000 employees and revenues worth €53,7 Billion. The present study tries to strategically analyse the company in order to understand how it continues to succeed with the changing market and customer scenarios. The methodologies used for this case study are SWOT analysis, PESTLE analysis and Porter’s Five Forces Model. Thus after analysing with strategic management tools we may conclude that even though over the years LVMH has achieved increasing growth, in order to continue is success and maintain its position as one of the top market players it should focus on its main business and also strategic deal with the variables corresponding to the evolving market.


Keywords


Strategic analysis, LVMH, SWOT, PESTLE, Porter’s Model

Full Text:

PDF

References


Azhar, K. (2008). Strategic management and business policy.

Dubois, B., & Paternault, C. (1995). Understanding the world of international luxury brands: the" dream formula."(Special Issue: Research Input into the Creative Process). Journal of Advertising research, 35(4), 69-77.

Fionda, A. M., & Moore, C. M. (2009). The anatomy of the luxury fashion brand. Journal of Brand Management, 16(5-6), 347-363.

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.