Louis Vuitton Value Chain
Project title: Louis Vuitton Value Chain
Case 2
Class : CL- mec-yf 13
Student: George Dulvara
Number of characters (including spaces, footnotes, end notes and text boxes): 16947
Date: 16/04/2013
Signature
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Table of Contents Summary 2 Introduction 3 Motivation 3 Research question 3 Interpretation 3 Scope 3 Method 3 Analysis of Louis Vuitton Value Chain 4 Louis Vuitton Supply Chain 4 Value Chain 5 LEAN MANAGEMENT 6 Future development of the value chain 7 Strengths 7 Weaknesses 7 VRIN Framework 8 Conclusion 9 Bibliography 10
Summary
This case should demonstrate the value that is being added to Louis Vuitton fashion and leather goods chain. We have used several analysis within the case. We have started with the management of the supply chain in order to see how the production lines are working within the 7 factories of Louis Vuitton for leather goods, starting from the suppliers, distributors and the final area in the official shops. Michael Porter’s value chain entitle the fact of a completely controlled area even from the beginning due to the fact that the suppliers are under Louis Vuitton administration and distributors like Kuehne + Nagel Japan are having strictly and confidential agreements in order to take care of the worldwide distribution for Louis Vuitton. New development has been brought to the 7 factories, using the Toyota car maker example, they have implemented the lean management principle within the primary activities to reduce cost and gain efficiency for satisfying the customer needs. Being one of the most legendary fashion house there are solid strength like skilled handwork and exquisite materials, powerful distribution capabilities and Marc Jacobs as artistic director draw the crown for the biggest luxury brand in fashion and leather goods. Weaknesses like the brand availability only in its exclusive stores and limited number of customers from elite
Case 2
Class : CL- mec-yf 13
Student: George Dulvara
Number of characters (including spaces, footnotes, end notes and text boxes): 16947
Date: 16/04/2013
Signature
_____________________________
Table of Contents Summary 2 Introduction 3 Motivation 3 Research question 3 Interpretation 3 Scope 3 Method 3 Analysis of Louis Vuitton Value Chain 4 Louis Vuitton Supply Chain 4 Value Chain 5 LEAN MANAGEMENT 6 Future development of the value chain 7 Strengths 7 Weaknesses 7 VRIN Framework 8 Conclusion 9 Bibliography 10
Summary
This case should demonstrate the value that is being added to Louis Vuitton fashion and leather goods chain. We have used several analysis within the case. We have started with the management of the supply chain in order to see how the production lines are working within the 7 factories of Louis Vuitton for leather goods, starting from the suppliers, distributors and the final area in the official shops. Michael Porter’s value chain entitle the fact of a completely controlled area even from the beginning due to the fact that the suppliers are under Louis Vuitton administration and distributors like Kuehne + Nagel Japan are having strictly and confidential agreements in order to take care of the worldwide distribution for Louis Vuitton. New development has been brought to the 7 factories, using the Toyota car maker example, they have implemented the lean management principle within the primary activities to reduce cost and gain efficiency for satisfying the customer needs. Being one of the most legendary fashion house there are solid strength like skilled handwork and exquisite materials, powerful distribution capabilities and Marc Jacobs as artistic director draw the crown for the biggest luxury brand in fashion and leather goods. Weaknesses like the brand availability only in its exclusive stores and limited number of customers from elite
Bibliography: Mahbubani, M.(2013)”Louis Vuitton” Richard Ivey School of Business Henriette Bjerreskov Dinitzen and Dorthe Bohlbro, “Value-Added Logistics in Supply Chain Management”, Academica [ 8 ]. Mahbubani, M.(2013)”Louis Vuitton” Richard Ivey School of Business. 15.04.2013 [ 9 ] [ 12 ]. Mahbubani, M.(2013)”Louis Vuitton” Richard Ivey School of Business. 15.04.2013 [ 13 ]