Louis Vuitton Chain Value Analysis

Table of Contents TOC \o "1-3" \h \z \u INTRODUCTION PAGEREF _Toc400385288 \h 2INBOUND LOGISTICS PAGEREF _Toc400385289 \h 3OPERATIONS PAGEREF _Toc400385290 \h 3OUTBOUND LOGISTICS PAGEREF _Toc400385291 \h 4MARKETING AND SALES PAGEREF _Toc400385292 \h 4SERVICES PAGEREF _Toc400385293 \h 5Summary of strengths and weakness’ PAGEREF _Toc400385294 \h 5LVMH – Firm infrastructure PAGEREF _Toc400385295 \h 7COMPETITIVE ADVANTAGE PAGEREF _Toc400385296 \h 7STRATEGIC CAPABILITIES PAGEREF _Toc400385297 \h 8Upstream and Downstream PAGEREF _Toc400385298 \h 10Questions for Business Law PAGEREF _Toc400385299 \h 12
Louis Vuitton
INTRODUCTIONThe Louis Vuitton company was originally founded in 1854 by Louis Vuitton Malletier in Paris as a company producing trunks. Even in those early beginnings they were able to create their own name by coming up with unique and new design and innovation in materials. This made its position even among aristocracy, what really strengthened the business. In 1892 his son, Georges Vuitton, inherited the company, focused on innovation, brought the firm into handbag business and LV started global expansion. However the Second World War brought end to this expansion and at the end the profitability and revenues were very low. Of this reason Renée Vuitton chose to bring in her son-in-law, Henri Racamier, the clever businessman, who put the company back to its feet. He started opening company-owned stores, pushed for rapid global expansion and stared acquiring another high-quality products companies. He also made an agreement with Moet Hennessy company and created Moet Hennessy Louis Vuitton group, but because of many disagreements about how to run the company, Racamier brought in a property developer Bernad Arnault to support his position. But rather than doing this, Arnault quickly acquired 45 percent of stakes in LVMH. After 18-month battle for control of LVMH control of LV slipped away from Vuitton family and Arnault became the CEO.
LVMH was a