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Authors:
Published by:
ESSEC Business School (2004)
Version:
1 Aug 2007
Length:
22 pages
Data source:
Published sources

Abstract

LVMH Moet Hennessy Louis Vuitton, based in France, is one of the world''s leading luxury goods companies. It operates in wines, spirits, fashion goods, leather goods, perfumes, cosmetics, watches, jewelry and retailing. The company employs approximately 56,000 employees. Its global distribution network grew from 828 stores in 1998 to 1,592 stores in 2004. The majority of sales are derived from the fashion and leather goods division, with Europe (including France) being the biggest regional contributor. The company is the largest and most widely spread luxury goods company, with a strong brand portfolio and distribution skills. LVMH''s ''star brands'' is a key foundation of the group''s strategy. It has built over time one of the strongest brand portfolios in the sector, counting 60 top brands amongst its five divisions and other operations. At the core of the fashion and leather business is the Louis Vuitton brand itself. This ''star of star brands'' is estimated to generate over 80% of earnings in the segment. The case discusses the following critical challenges for LVMH: (1) sustaining its organic growth strategy; (2) competition strategy; (3) managing multi-brand strategy with star brands; (4) managing a decentralised conglomerate; (5) leadership and charisma of Bernard Arnault in creating, maintaining and managing a global conglomerate; and (6) people issues in the luxury industry.

Topics

Managing the global conglomerate; Decentralised organisation; Mergers & acquisitions (M&A); Synergy, organic growth, competition; Multi-branded strategy; Star brands; Brand management; Portfolio management; International management; Global operations; Leadership; Bernard Arnault; Luxury goods; France
Location:
Industry:
Size:
Revenue EUR11,963 million, 56,000 employees
Other setting(s):
2004

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