1) Strategic Position: They only have brands for the luxurious sector, they keep doing what they know. They do not venture out into brands that do not go under their aesthetic (They have “Star” Brands). Under the LVMH parent brand are strong brands, who can make their own decisions. They keep their brands separate from the LVMH. Value proposition: The drive for quality and high standard. Always up-to-date, expand brand online (nowness). Only group that has all luxury categories (but are cars not luxury?). Profit proposition: They are at a leader position, therefore resources and collaborations are easy to achieve. Continuous growth because of strong brands, large geographic balance, 32% market share in Asia (excl. Japan) & 28% in Europe (incl. France), 18% market share in the US.
People proposition: They have talented and creative members throughout, from boardmembers, designers, marketing team, logistics. The founder Bernard Arnault, has a stabile and well known position in brand, and owns the most shares. They focus on quality and good product, the same goes for their staff.
2) Luxury brands, like LVMH, are usually less affected by e.g. the recession, as the mass are less sensitive to price changes. Competitors: Gucci Group & Richemont
* Star brands: LVMH (68), Richemont (20), Gucci Group (16) * Global distribution: LVMH, Richemont, Gucci Group
* Diversification of products: LVMH (5 categories), Richemont (3 categories), Gucci Group (5 categories).
3) SWOT ANALYSIS
* Strengths: large portfolio in different categories, distributed globally, leader brands, good reputation = accessible resources, image consistency, leadership in the market. Suppliers are within the company. * Weaknesses: the idea of luxurious craftsmanship is not entirely true (they do not make the bags by hand, classic speedy bag is not real leather!). * Threats: economical environment, cheap copies effect image. * Opportunities:...
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