Name: Song Ko Kang (16-31946-1)

• Founded in 1854 by Louis Vuitton• CEO: Michael Burke• Headquarters: Paris, France• Industry: Fashion and retail• Website: louisvuitton.com• President: Bernard Arnault • Art Director: Marc Jacobs• Net worth: $25.9billion • Employees: 114,000 in over 70 countries • Distribution channels: 3384 stores

In 1854, Vuitton opened his first store in Paris on Rue Neuve des Capucines and founded Louis Vuitton Malletier a paris.In 1858, he introduced his flat-bottom trunks with

Trianon canvas which were lightweight and airtight.By 1885 the company opened his first store in

London, England on Oxford Street.In 1892, Vuitton died and the Company began to

make handbags.In 1896, the company launched its famous and

legendary Monogram Canvas and made the worldwide patent on it.This marked the Golden age of Louis Vuitton.

LV is elegant, practical, prestigious, luxurious, desirable, stylish and high quality and value.

Product and Services• Handbags • Small leather goods• Travel wear• Accessories • Shoes• Jewelry and timepieces• Personalization (Mon Monogram)• Gift inspirations• Books and writing• Wines and spirit

SWOT Analysis

1. The brand is one of the oldest fashion houses 2. The brand is easily recognizable 3. The brand has a strong presence 4. The brand is available exclusively in its own stores5. The brand has a clientele including international celebrities6. Largest luxury brand with exclusivity7. Superior craftsmanship

Strengths:

1.The brand is available only in its exclusive stores 2. Cash flow3. Too much focus on specific brands4. Lack of attention and neglecting smaller brands

Weaknesses:

SWOT Analysis

1.The Company needs to adapt to the current fashion trends2. The company can offer once in a year discounts for its customers3. New image revamps4. Continuous innovation and support5. Growing markets for luxury goods in Asia Pacific countries

Opportunities:

SWOT Analysis

SWOT Analysis

1. The brand is counterfeited all around the world2. Economic crisis can hurt the brand sales in a negative way3. Rising advocacy against the use of animal skins 4. Intense increasing competition

Threats:

Growth Strategy-As an exclusive brand with its retail stores across the world,

Louis Vuitton still has a long way to go before it reaches its maximum potential.-

Untapped potential marketsBrazil, India, South Africa, Southeast Asia

-Globalization-

-Diversification-Growth Strategy

Branching out to different luxury product categories such as, perfumes, cosmetics, jewelry, and even famous restaurants is another possible growth strategy.

Growth Strategy-Merger/Takeover-

Merging with other famous brands like, Gucci will provide huge economies of scale as well as extended customer base, and taking over small individual brands will also increase market shares..

Price is not the main issue because the customers seek uniqueness and prestige in luxury products.

-Differentiation- Growth Strategy

5 Competitive ForcesThreat of new

entrants – Moderate to low

Threat of Substitute – Moderate

Bargaining Power of

Buyers – Low

Bargaining Power of

Suppliers – Moderate

Current rivalry – High

Problems With the Business

Too many Counterfeits

High cost, low profit

Reluctance to expand

Too many brands and low profit brands.

Over focusing on a specific customer group

Recommendation Establishing Anti-Counterfeiting Trade Agreement

(abolishing counterfeits)

Lower R&D cost

Expand into emerging markets

Focus on image and quality

Differentiation to create a competitive advantage and uniqueness

-Quote"If you control your factories you control your quality, and if you control your distribution, you control your image." - Bernard Arnault

-Quote-

"If you control your factories you control your quality, and if you control your distribution,

you control your image." - Bernard Arnault

Reference

http://www.slideshare.net/khattab303/lvmh-presentation-11182014http://blog.euromonitor.com/2014/02/diversification-key-to-the-future-of-lvmh.htmlhttps://www.luxurydaily.com/louis-vuitton-continues-to-raise-brand-value-despite-industry-challenges-report/Management by Stephen P Robbins