The Strategy of Louis Vuitton

Essay by collegegrlUniversity, Master'sA+, August 2004

download word file, 2 pages 4.0

Downloaded 228 times

Louis Vuitton Strategy

LVMH is the world's leading luxury products group. The strategy of LVMH is based on combining LVMH fashion and leather goods. Net sales have grown 57% in the past two years. In 2001 LVMH had a strong earning growth in a slumping economy. This was due to the strength of the Louis Vuitton brand, which is the world leader in luxury goods and benefited the younger brands from the synergies that developed within the business group. Each company could focus on their core business design and marketing while they benefited from shared financial and technical expertise. Each one is moving toward its objective and improving sales.

Mr. Carcelle made strategic plans to establish the organizations overall goals. LVMH's goal is to grow faster than their competitors. The logic of acquiring several companies over a short period of time was based on the internal growth of LVMH. They had a strong support of brand image; they are number one in the world with 50 brands and have a strong presence in all luxury sectors. They have a good geographical balance and control over distribution. The strategy was based on the constant and sustainable growth of multi brands. Carcelle's thought is what happened for the Louis Vuitton brand can and will happen for his new smaller brands. Carcelle is in for the long run and understands the time lines. LVMH is building up design teams and continue to expand and renovate their worldwide store network. They continue to invest in advertising and promotion while making the capital expenditures required to increase production capacity and meet the strong demand for their products.

Yves Carcell is charismatic and a visionary leader. He has the ability to create and articulate a realistic, credible, and attractive vision of the future and...